Global gains: Lehmann goes for global yields

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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.

Richard Lehmann, editor of The Forbes/Lehmann Income Securities Investor, is a long-standing expert in assessing income-oriented stocks. Here, he reviews a pair of global preferreds that he recommends for low-risk investors.

"Aegon N.V (NYSE:AEG) is one of the world's largest global life insurance and pension companies. Their major markets are the United States, the Netherlands, and the United Kingdom. The Aegon N.V. 6.375% perpetual preferreds (NYSE:AEH) were recommended in October 2005 at a price of $25.50 for a then-current yield of 6.25% and a yield to call of 6.15%.

"Aegon recently expanded its operations by partnering with Ranbaxy Promoter Group to jointly enter the life insurance and asset management business in India. This A-rated preferred is currently trading at $25.97 for a current yield of 6.14%.

"The preferred is not callable until 2015 and qualifies for the 15% tax rate. This security is a good investment for low-risk investors and has been added to our Low-Risk Portfolio. Our recommendation is to buy this issue at or below $26.

"Royal Bank of Scotland (Other OTC:RBSPF) is a holding company that provides a wide range of banking, insurance, and finance services internationally. We recommended the 6.40% series M preferreds at a price of $25.12 back in September 2004.

"This A-rated Royal Bank of Scotland perpetual preferred (NYSE:RBS-M) is now trading at $25.50 and yields 6.27% and is callable in September 2009 at par ($25.00), giving it a yield to call of 5.65%. The preferred is a QDI (qualified dividend income) and eligible for the 15% tax rate.

"This is an excellent choice for low-risk investors and is included in this year's Low-Risk Portfolio. Our recommendation is to buy this issue at or below $26."

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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Last updated: February 09, 2010: 06:07 PM

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