In her top-performing Global Investing advisory, Vivian Lewis looks at a lesser-known area of the income market -- non-cumulative preferreds -- explaining these vehicles and offering some favorites.

"Over 20 years ago, Barclays Bank, which is British, invented a new vehicle for raising money in the U.S. market to enhance its capital ratios and finance its growing dollar business.

"They were called non-cumulative preferred shares and were issued at $25/share to pay dividends four times a year just as normal U.S. stocks do. The clear target for these vehicles was U.S. retail investors.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Lloyds TSB Group PLC (NYSE: LYG) is a favorite conservative stock idea for 2007 from Jack Adamo, editor of Insiders Plus.

"While it is not the Lloyd's of London of specialty insurance fame," points out Adamo, "this London-based financial services powerhouse has roots dating back to 1765, and operates in three segments: U.K. retail banking; insurance and investments; and wholesale and international banking. It also provides brokerage, asset management, and pension services.

"It's not exactly exciting, but I think it will noticeably outpace the market in 2007. What it has going for it is financial clout, with a $60 billion market capitalization and a current dividend yield of 5.7%. Growth in earnings is expected to come in around 12.5% from 2006 to 2007.

"Lloyds currently trades for 11.25 times expected 2007 EPS of $3.86 per share. I look for total return to come in at around 18% in 2007. Lloyds' high yield provides cover in a down market, and may add extra price appreciation as investors go for yield in a falling market. That could push total return to the 25% range.

"Another significant factor in its favor to consider is the likely appreciation of the British pound sterling against the U.S. dollar, which will provide a boost to returns for U.S. investors."