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A Little-Known
Company Returns +107% for High-Yield
Investing Subscribers
Published:
April 7, 2008
When
many people think of high-yield stocks, the first thing to come
to mind is often an aging bank or maybe a stodgy utility.
However, Carla Pasternak, editor of our
High-Yield Investing newsletter, likes to think
outside the box. Each month, she takes her readers on a trek to
some of the most obscure (but profitable) corners of the
income-investing jungle -- where investors come in close
quarters with unusual securities they don't hear about everyday.
In her January 2005 newsletter, for example, Carla gave
subscribers an up-close view of a Brazilian firm named
Aracruz Celulose (NYSE: ARA, $73.38). While the company is
still largely unknown among U.S. investors, its primary product
is one that most of us are familiar with -- eucalyptus pulp, the
same stuff used to make tissue paper and other goods. The firm
actually supplies one-quarter of the world's supply of this
versatile commodity, along with high-grade lumber for furniture
and flooring.
Attracted by an improving global sales outlook, a reasonable
trailing P/E ratio of 15, and a nice yield of 5.6%, Carla
initially singled out the stock at a price of $37.70. And since
then, the company has lifted its annual revenues from $1.3
billion to $1.9 billion and dished out a total of nearly $4.50
per share in dividend payments. Meanwhile, thanks in part to
record earnings last year, the stock has nearly doubled,
climbing to Friday's close of $73.38 -- a capital gain of +95%
and a total return of +107%.
In this month's newsletter, Carla again goes off the beaten path
in search of unique securities with attractive total return
potential -- this time pointing readers towards a top-performing
fund that invests in bonds issued by
sovereign foreign governments like Hungary, Chile and Korea.
Those bonds produce a steady monthly income equating to a yield
of 6.4%, and shareholders can reasonably expect to see some
capital appreciation as well -- the fund's index has seen
annualized gains of +15.5% over the past five years.
If you want to read more about this exciting fund, instead of
the same tired commentary about utility and bank stocks, then we
invite you to become a
High-Yield Investing subscriber. Simply visit this
link
to learn more.
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Nathan Slaughter
StreetAuthority Staff Writer
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Income Security
of the Month
Our "Income Security of the Month" for August 2008 invests in a
fast-growing overseas market that doesn't get much exposure in the
mainstream financial press. And although it typically makes enormous
annual dividend payments -- it has paid an average dividend of
25.5% per year over the past five years -- this fund is perhaps
most appealing for its total return potential. Specifically, the
fund has delivered total returns of +178.9% since 2003,
and it ranks in the top 10% of its category over the past decade.
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Top
10 Stocks for 2008!
Since we began publishing this report back in 2003, the picks we've
featured have consistently beaten the broader market -- delivering average
gains of +21.3% per year and outperforming the S&P by a nearly
2-to-1 margin. Act now to reserve your copy of our newest report -- Top
Ten Stocks for 2008. |
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