Best Stocks for 2008: Look up income at Yellow Pages (YLO.UN)

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"My favorite stock for 2008 for conservative investors is Yellow Pages Income Fund (Toronto: YLO.UN)," says Gordon Pape, editor of Internet Wealth Builder.

"In mid-2003, I recommended the purchase of Yellow Pages Income Fund to readers of my Internet Wealth Builder newsletter at C$10.

"Since then, we've received capital gain of $3.48 a share plus cash distributions of $4.33 per unit for a total return of 78%. This return occurred even given the Canadian government's decision to tax trusts starting in 2011.

"Looking ahead, we may not see as much movement in the share price, but the distributions should stay steady or rise marginally. For anyone seeking steady income, that makes this trust very attractive. At the current price the shares are yielding 8.4%, making them very good value.

"Management says that action will be taken to ensure Yellow Pages is not subject to the income trust tax but has not released specifics. Indications are, however, that it will be transformed into a high-dividend corporation.

"The combination of stability, yield, and a dominant position in the Canadian market make this a low-risk choice for conservative investors."