I've just returned from the World Money Show in Orlando where more than 10,000 investors gathered to learn about global investing. I had a chance to meet with many of the U.S. and foreign financial experts featured at the show, and over the next week I will share some of their top investment ideas. To view all of the stocks featured in this special global report, click here.
In his search for high growth and income, Mark Skousen searches worldwide, and indeed, his latest trio of dividend plays reach from Australia and China to Peru.
The editor of the Skousen High Income Alert and host of the annual investor think tank, Freedomfest, explains, "We hold two foreign commodity stocks in our high-yield portfolio that have achieved double-digit percentage gains, while paying double-digit percentage dividend yields. And both stocks look like winners for 2007 as commodity prices climb.
"Southern Copper Corp. (NYSE:PCU) is the world's fifth largest copper producer and it is only one of a select few commodity plays that pays a large dividend.
"Southern Copper now is up 19% since the first of the year and up 39% since we initially recommended it in early October. Despite lower copper and gold prices in the past six months, Southern Copper is minting money by maintaining low costs and increasing production.
"Plus, the stock pays an incredible 11% dividend. It should pay a $1-plus dividend in the next week or two weeks. What's not to like? Keep on buying. Southern Copper is part of our incredible high-income portfolio.
"Aluminum Corp. of China (NYSE:ACH) is another commodity play that pays a high dividend. Known as Chalco, the firm is the world's second-largest manufacturer of aluminum after mammoth Alcoa. Chalco also is China's number one producer, with more than a million tons of aluminum manufactured annually.
"Industry analysts expect healthy aluminum demand growth of 4%-6% into 2007, with only a 2%-3% increase in production capacity. With demand growth continuing to outpace production capacity, prices likely are to rise. Not surprisingly, the metal currently sells for $1.31 per pound on the London Metal Exchange, up 54% from 2005.
"Chalco trades at roughly eight times fiscal 2006 estimates, a 30% discount to Alcoa, while offering an expected dividend yield of 12% this year. Chalco in China, yields 13% and may even boost its dividend further. Chalco is a steal at this price."
Steven Halpern's TheStockAdvisors.com provides a free, daily overview of the latest stock ideas from the nation's leading financial newsletters.
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