Continue reading Serious Money: Six stocks paying over 6% yields: VZ, DUK, MO, KMP, BWP, NLY

Serious Money: Six stocks paying over 6% yields: VZ, DUK, MO, KMP, BWP, NLY originally appeared on BloggingStocks on Tue, 07 Jul 2009 14:40:00 EST. Please see our terms for use of feeds.

Continue reading Sin stocks are blessed -- Diageo rewarding investors

Sin stocks are blessed -- Diageo rewarding investors originally appeared on BloggingStocks on Fri, 19 Jun 2009 14:20:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: AT&T and VZ, high yield plus safety

Chasing Value: AT&T and VZ, high yield plus safety originally appeared on BloggingStocks on Tue, 16 Jun 2009 13:40:00 EST. Please see our terms for use of feeds.

What are the best buys among dividend-paying issues? In his Dividend Detective newsletter, Harry Domash focuses on for income-generating ideas for long-term investors.

Here, the advisor reviews some of his latest buys among master limited partnerships, preferreds and yield-oriented closed-end funds.

"Among energy partnerships, we're adding two new picks to the portfolio with a buy rating. First, NuStar Energy (NYSE: NS), currently yielding 8.4%, operates crude oil and refined product pipelines and associated facilities.

"NuStar recently acquired asphalt refining and terminal facilities, a business that's expected to boom once the government supported highway construction projects kick in.

Continue reading Dividend Detective's income favorites

Dividend Detective's income favorites originally appeared on BloggingStocks on Thu, 04 Jun 2009 13:20:00 EST. Please see our terms for use of feeds.

The stock market has enjoyed a strong rally the past ten weeks, even with a few very minor setbacks. If you were in the market, you enjoyed it too.

It is more likely that the market will become somewhat volatile for the rest of the year rather than continue to rise substantially, barring some outlier. For this reason I have been emphasizing to our readers that they focus their attention on creating a watchlist of stocks they would like to acquire, potentially at great discount for the long haul.

I started this recent series last week with Serious Money: Keep your eyes on UPS and FDX, focusing on large cap stocks certain to make it through these difficult times.

Continue reading Serious Money: Duke Energy & Southern 'Power-Full'

Serious Money: Duke Energy & Southern 'Power-Full' originally appeared on BloggingStocks on Thu, 21 May 2009 13:00:00 EST. Please see our terms for use of feeds.

Most people probably have not heard of the Olin Corp (NYSE: OLN), even though it has been in business in the United States since 1892 (127 years!), and has been selling ammunition under the 140-year-old Winchester brand since it acquired the company 76 years ago.

While Olin has been around a long time, it does not get much attention. It is only capitalized at $1 billion and much of what it sells is far from glamorous. It also does more wholesale than retail business. However, investors should remember this: Olin pays a safe 5% yield!

Continue reading Chasing Value: 5% yield from Olin, a 'boring' old company

Chasing Value: 5% yield from Olin, a 'boring' old company originally appeared on BloggingStocks on Fri, 08 May 2009 12:30:00 EST. Please see our terms for use of feeds.

"One of the 'super five' integrated oil and gas companies, Royal Dutch Shell (NYSE: RDS.A) has a diversified portfolio of oil and gas assets around the globe," says international investing expert Nick Lanyi.

In High Yield International, he says, "As one of the more conservative plays on a falling dollar and a rebound in oil & gas prices, I am adding Royal Dutch Shell -- yielding of 5.8% -- to our 'Reliable Income' portfolio."

"The Amsterdam-based company's revenue is more gas-oriented than its other super-major peers; about 40% of production is natural gas.

"In addition, Shell is more focused on unconventional sources of oil and gas than most -- the company plans to derive more than 10% of its revenue from sources such as oil sands and liquefied natural gas by 2014. This coincides with Shell's long-standing reputation as an industry leader in technology and engineering.

Continue reading Royal Dutch Shell (RDS.A): Reliable returns from a 'super major'

Royal Dutch Shell (RDS.A): Reliable returns from a 'super major' originally appeared on BloggingStocks on Tue, 24 Feb 2009 14:50:00 EST. Please see our terms for use of feeds.

"We're going to revisit a stock we've traded in the past: General Electric (NYSE: GE)," says growth & Income expert Mark Skousen.

In his specialty yield-oriented advisory service -- High Income Alert -- he asks, "Why buy a stock scraping the bottom?" Here, the leading advisor offers four reasons behind this new recommendation.

"GE, of course, is a global leader in appliances, aviation, healthcare, transportation, energy, water technologies, cable, film, consumer electronics, lighting, electrical distribution and finance.

"The U.S. economy is in the dumpster right now, so it's no surprise to find GE there, too. From a high of more than $40 a little more than a year ago, GE trades near its 52-week low today. And we see four good reasons to buy.

Continue reading General Electric: Four reasons to buy

General Electric: Four reasons to buy originally appeared on BloggingStocks on Tue, 17 Feb 2009 11:15:00 EST. Please see our terms for use of feeds.

In December when I posted Chasing Value: Annaly Capital Mgmt -- from watch list to buy I was not just recommending Annaly Capital Management (NYSE: NLY), I actually was buying it.This residential REIT buys secured home mortgages, leveraging short term against long term rates.

Continue reading Chasing Value: Worried Annaly Capital investor

Chasing Value: Worried Annaly Capital investor originally appeared on BloggingStocks on Fri, 13 Feb 2009 14:45:00 EST. Please see our terms for use of feeds.

"Our favorite US stock market fund is Vanguard Dividend Growth (VDIGX); in 2008, it lost less than just about any other large-cap fund," says Mark Salzinger in his The No-Load Fund Investor.

"In 2008, Vanguard Dividend Growth lost 25.6%, vs. 37.1% for the S&P500 Index. Over the longer term, manager Donald Kilbride has proven his mettle with good stock picks and nimble application of his strategy.

"He looks for stocks with histories of rising dividend payouts along with the wherewithal and intention to continue increasing dividends into the future. Plus, he likes to buy these stocks when they appear relatively inexpensive.

Continue reading Vanguard Dividend (VDIGX): Top pick for US large caps

Vanguard Dividend (VDIGX): Top pick for US large caps originally appeared on BloggingStocks on Fri, 13 Feb 2009 14:30:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: Atlas Energy Resources -- about natural gas and taxes

Chasing Value: Atlas Energy Resources -- about natural gas and taxes originally appeared on BloggingStocks on Mon, 29 Dec 2008 17:00:00 EST. Please see our terms for use of feeds.

"Energy Transfer Equity (NYSE: ETE), a major player in the midstream energy sector, is a cash-producing machine," says value investor Nathan Slaughter.

The editor of Half-Priced Stocks explains, "Even more promising, those who know the company best -- the CEO and one of its co-funders -- have been voting with their wallets lately." here's his review of the income holding.

"The company -- a master limited partnership (MLP) -- owns over 17,000 miles of natural gas pipelines in several states, including the largest network serving the prolific gas basins of Texas.

MLPs come in two classes: general partner and limited partner. The general partner (GP) typically handles all of the day-to-day operations and in return gets a cut of the distributions that are dished out to the limited partners (LP).

"In this case, the General Partner is Energy Transfer Equity, our recommendation, which should not be confused with the Liimted Partner -- Energy Transfer Partners (NYSE: ETP).

"Energy Transfer Equity owns all the General Partner interests -- as well as 62.5 million LP units (46%) of ETP. All of which is a convoluted way of saying that ETE unitholders can expect to be showered with cash.

Continue reading Energy Transfer Equity (ETE): Pipeline to profits?

Energy Transfer Equity (ETE): Pipeline to profits? originally appeared on BloggingStocks on Thu, 04 Dec 2008 15:15:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: GE -- the water & power company

Chasing Value: GE -- the water & power company originally appeared on BloggingStocks on Tue, 25 Nov 2008 18:10:00 EST. Please see our terms for use of feeds.

"Annaly Capital (NYSE: NLY) is in the sweet spot," says Steve Sjuggerud in Daily Wealth. He says, "It borrows money at a low interest rate and invests it at a higher rate -- and earns the 'spread'."

"The cost of money is historically low, and it's headed lower. Meanwhile, relative to the cost of money, the return on money is higher than it's ever been.

"The ultimate way trade on this historic discrepancy, for high-returns with very low risk, is through shares of companies like Annaly, which is now s now paying a 16% dividend.

"In the latest-reported quarter, the company borrowed money at 3.5%. (The credit markets have calmed down a bit, so its cost of borrowing should be even lower next quarter.)

"It invests the money in government-guaranteed bonds. You remember how the Treasury bailed out Fannie Mae and Freddie Mac? It wiped out shareholders. But it explicitly guaranteed the bonds.

"In the latest-reported quarter, Annaly earned 5.6% interest on these risk-free bonds. Therefore, it earned a 2.1% spread. If the company uses seven times leverage, a 2.1% spread means a 14.7% return on its money.

"Analysts estimate the company will earn $2.50 per share next year. It pays out essentially all of its earnings in dividends. So that'll be a dividend yield of about 19%. This is ridiculous. An opportunity like this only appears during market turmoil like we're experiencing now.

"This is a historic moment. The difference between the cost of money and the return on money relative to that cost is at the most extreme levels I've seen in my career. Take advantage, and buy stocks like Annaly today."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Annaly Capital (NLY): 'In the sweet spot for historic yields' originally appeared on BloggingStocks on Fri, 21 Nov 2008 15:39:00 EST. Please see our terms for use of feeds.

"Seattle-based Plum Creek Timber (NYSE: PCL), the nation's largest private landowner with more than eight million acres, has caught our eye," says Bill Martin.

In his BullMarket.com advisory, he explains, "Earnings have been stunted in recent quarters by the housing slump, but the company sports a strong balance sheet and an asset base that thanks to nature only gets larger and more valuable as time goes by."

"Plum Creek, which operates as a real estate investment trust, reported surprisingly solid Q3 profit. It posted net income of $69 million, or 40 cents per share, for the quarter ended September 30th, compared with a profit of $59 million, or 34 cents per share, for the same period a year ago.

"In the 2007 quarter, fire losses in Montana forced the company to report a $4 million non-cash expense, or two cents per share, related to fire losses experienced in Montana.

"The company's EPS results topped the expectations of Wall Street analysts by a penny a share. Revenue grew to $414 million, up 2% from $407 million last year. The sales results were a bit short of the consensus of $419.8 million.

Continue reading 'Growing' assets: Plum Creek Timber (PCL)

'Growing' assets: Plum Creek Timber (PCL) originally appeared on BloggingStocks on Tue, 18 Nov 2008 13:30:00 EST. Please see our terms for use of feeds.

"In bear markets, a traditional safe haven for investors has been to seek out stocks with high dividend yields and ideally the potential for share-price appreciation," notes Bill Martin.

In his exceptional trading and investing service, BullMarket.com, he notes, "One of our favorites for income is Hospitality Properties Trust (NYSE: HPT), a real estate investment trust, which offers an 8.5% yield.

"Hospitality Properties Trust invests in hotels and travel centers, the latter being otherwise known as truck stops. If it doesn't sound very glamorous, this REIT nonetheless currently pays a $3.08 a share annual dividend, good for a pre-tax 8.5% yield with the stock trading in the mid-$30s range.

"It buys hotels principally for income and secondarily for appreciation potential. All of its properties are run under long-term combination agreements that usually require the operators to pay the company minimum returns or rent plus a share of the increased cash flows realized over time.

"It doesn't favor any one hotel brand, operating under such names as Hyatt Place, Spring Hill Suites, Marriott Residence Inn, Radisson, Staybridge Suites, Crowne Plaza, and Courtyard hotels.

Continue reading Income seekers sleep easy at Hospitality Properties (HPT)

Income seekers sleep easy at Hospitality Properties (HPT) originally appeared on BloggingStocks on Tue, 08 Apr 2008 14:30:00 EST. Please see our terms for use of feeds.

It's foolish to get too excited about short term success unless you are a rapid fire trader. However, the first six weeks of 2008 have been dismal, so any success is a sigh of relief. I enjoy writing for BloggingStocks, in part because of the dialogue it allows, making it a good sounding board for things I am considering in my investment world.

'Mr. Noital' is one who keeps me sharp and he recently reminded me about Precision Drilling Services TR (NYSE: PDS), a stock I recommended two months ago, so he must like it too and perhaps bought a few shares.

In December, Canada's largest drilling contractor with a fleet of 240 service rigs was $15.47 per share, but last Friday it closed at $19.12, for a nice bounce of 24%. This when the market is down over 8% and almost nothing is looking very promising. When I first called PDS to readers' attention, it had a price to earnings ratio (P/E) near 5 and a dividend yield over 10%. The stock's appreciation has raised the P/E to 6.26 and the yield declined to 7.9% -- still very generous.

I have no crystal ball so predictions are hard to come by, but a closer look at PDS is worth while and you might like what you see. Of course comments are welcome.

Sheldon Liber is the CEO of a small private investment company and the design and research principal for an architecture & planning firm. Disclosure: I do own shares of PDS.

Chasing Value: Precision Drilling up 24% originally appeared on BloggingStocks on Mon, 11 Feb 2008 13:43:00 EST. Please see our terms for use of feeds.

Among my stock picks this year, Newcastle Investment Corp (NYSE: NCT) may seem to have the greatest risk, but it is a calculated risk and has the potential of very high rewards. It has lost two-thirds of its value since the first quarter of 2007 and I believe has the potential to double if it can just tread water for a couple of quarters. The reason the dividend is so high is that the price dropped due to fear in the market place over its loan portfolio, not a loss of cash flow. The fear is palpable, but is it warranted? I do not think so. On December 28, 2007 NCT closed at $13.08 per share.

Newcastle is a REIT that invests in real estate loans, not the actual real estate, and 90% of those loans are in non-residential projects. Over the past six months, the financial sector has become one big horror story and investors ran from the "financial theaters" in panic. So in my own version of the story, Chasing Value: Newcastle's 21.9% yield too good to be I true?, I decided to play Ghostbusters and tried to make it clear that there is value in NCT. Suppose the yield fell with the stock price as defaults affected cash flow, I could still be very happy with a 7% to 8% yield.

I will summarize here by letting you know I did what homework I could and checked out NCT's recent conference call. This company has averaged an 8.8% yield over the last five years. However, today because the stock is now a third of its recent price, the yield has jumped to 21.9%. Newcastle is standing by this dividend. Actually I think it has to, because REITs are required to pay out most of their profits, and Newcastle has earned 23% over the last fiscal year.

Continue reading Chasing Value: Newcastle's 22% yield will reward patience

Chasing Value: Newcastle's 22% yield will reward patience originally appeared on BloggingStocks on Fri, 04 Jan 2008 15:23:00 EST. Please see our terms for use of feeds.

When I posted Chasing Value: Newcastle's 21.9% yield too good to be true?, I said that the metrics don't really matter as long as Newcastle Investment Corp (NYSE: NCT) stays open for business and keeps paying that dividend!

Today came the announcement that NCT will be distributing $0.72 per share for the fourth quarter, on January 30, 2008, to shareholders of record on December 31. This represents a 20% dividend yield -- not too shabby, but a little lower based on today's price, hovering around $14.00. When I first posted, the stock was 10% lower and yield was 10% higher.

Continue reading Chasing Value: Newcastle makes good on dividends -- 20% yield is still great

Chasing Value: Newcastle makes good on dividends -- 20% yield is still great originally appeared on BloggingStocks on Thu, 13 Dec 2007 16:56:00 EST. Please see our terms for use of feeds.

You read that correctly, Newcastle Investment Corp (NYSE: NCT) a REIT, is currently paying around $2.88 per share dividend, that equates to a yield of 21.9% based on yesterday's closing price of $13.15 according to AOL Money & Finance data. We all know the "truism" that if something sounds to good to be true... it usually is. So why am I crazy enough to even consider such a thing? Believe me, I have been asking myself that question over the last five months or so that I have been watching this stock.

Newcastle first came to my attention through a Smart Money story written by James B. Stewart many months ago. He was discussing three stocks that he thought were worth the risk and had bought into all three. One of them was the now bankrupt American Home Mortgage (AHM) -- need I say more? The second was NCT and the third escapes my memory. Bankruptcy tends to put a damper on my investment psyche, so I left this idea alone until last month when NCT popped up on my radar screen again.

I do not remember what I was reading at the time but I started to take a closer look and found that NCT was very well diversified into all classes of real estate, with only 10% of the portfolio being in residential properties. Looking at some of the traditional metrics: the P/E is around 10, the P/S 1.3, the P/B 0.74 and the PEG ratio is listed at 0.15. All these numbers are SCREAMING VALUE very loudly. So what's the problem?

Continue reading Chasing Value: Newcastle's 21.9% yield too good to be true?

Chasing Value: Newcastle's 21.9% yield too good to be true? originally appeared on BloggingStocks on Thu, 29 Nov 2007 16:05:00 EST. Please see our terms for use of feeds.