"Income investors have to be very careful when searching for yield; many high-yielding stocks have turned in disastrous performances over the last year," cautions Chuck Carlson.

In his The DRIP Investor he adds, "That's what makes Philip Morris International (NYSE: PM) so attractive. The issues stands as as one in which investors can be confident of a steady dividend stream."

"The stock's current yield of 5% is especially attractive in this environment. And the dividend is taxed at the current preferential tax rate of just 15%, giving it an extra appeal relative to yields on fixed-income investments. Furthermore, the dividend is safe.

Continue reading Steady income from Philip Morris Int'l (PM)

Steady income from Philip Morris Int'l (PM) originally appeared on BloggingStocks on Fri, 05 Jun 2009 13:30:00 EST. Please see our terms for use of feeds.

"As the global economy rebounds late this year or next year, demand for energy will rise again, sending prices of crude and natural gas higher," says growth and income expert Bryan Perry.

In his top-notch The Cash Machine, he explains, "With energy assets cheap by historical standards right now, I want to increase our exposure to LINN Energy LLC (NASDAQ: LINE), a best-in-class inflation hedge."

"Founded in 2003, LINN is an independent oil and gas Master Limited Partnership (MLP) that completed its initial public offering (IPO) in January 2006.

Continue reading LINN Energy (LINN): 'Best in class' inflation hedge

LINN Energy (LINN): 'Best in class' inflation hedge originally appeared on BloggingStocks on Tue, 19 May 2009 13:30:00 EST. Please see our terms for use of feeds.

This post is part of a special report, Global advisors look to China.

"Sure, China is slowing down along with the rest of the global economy; but it's still growing faster than everyone else," says Mark Skousen.

In his specialized service, High Income Alert, he looks to Huaneng Power (NYSE: HNP), "This power product is an excellent, recession-resistant China play. And we'll be collecting a 6.5% dividend too."

Skousen explains, "China's Premier Wen Jiabao's goal is 8% annual growth. He may not achieve it. But the outlook for certain industries -- especially utilities -- remains robust.

Continue reading Huaneng Power (HNP): Income from China

Huaneng Power (HNP): Income from China originally appeared on BloggingStocks on Sat, 28 Mar 2009 09:30:00 EST. Please see our terms for use of feeds.

"With occupancy rates around 95%, apartment REITs appear to be the one bright spot in the REIT sector," says Asif Suria in The SINLetter; he looks at AvalonBay Communities (NYSE: AVB).

"The company generates nearly half its net operating income from the NY/NJ metro area and New England. California represents an additional 32% of net operating income.

"With a management team that is well respected and leverage that is the lowest of any apartment REIT, AvalonBay has traded at a premium over the last few years and the stock was trading at nearly $150 when I first came across the company in early 2007.

"I continued watching the company over the last two years looking for an opportunity to start a position. With a decline of over 70% from its 2007 high and a yield of 8.1%, this apartment REIT is finally at a level that not only offers a fat yield but also the potential of price appreciation.

Continue reading AvalonBay (AVB): REIT rental returns

AvalonBay (AVB): REIT rental returns originally appeared on BloggingStocks on Fri, 13 Mar 2009 11:30:00 EST. Please see our terms for use of feeds.

This post is part of a 12-article feature that can be read here: Today's best income ideas.

"Master limited partnerships have been among the market's most stable and reliable groups; but 2008 was a painful exception, with the benchmark index down nearly 37%, the worst performance in its 13-year history," says Elliott Gue.

In Personal Finance he now sees a "great opportunity" for investors to takes positions in this high-yielding sector. Here's a trio of favorite investment plays in the MLP arena.

Continue reading Pipeline profits: High yields from MLPs

Pipeline profits: High yields from MLPs originally appeared on BloggingStocks on Mon, 02 Mar 2009 08:30:00 EST. Please see our terms for use of feeds.

"PepsiCo (NYSE: PEP) Pepsi is about as dependable a company as there is and the stock would be an excellent anchor for most portfolios," says value investor Nathan Slaughter.

In his Half-Priced Stocks, he says, "All told, PepsiCo has built an impressive lineup of 18 brands that each generate more than $1 billion in annual sales."

"Long ago, management realized that carbonated drink sales would fizzle out and per-capita consumption would become sluggish. In their place, bottled water and sports drinks became two of the fastest-growing categories. And Pepsi is the dominant player in both, with its Aquafina and Gatorade brands.

"Meanwhile, energy drinks have emerged as the industry's hottest segment -- with sales soaring from $1.2 billion in 2002 to more than $6.6 billion last year. Again, Pepsi is well-represented with Amp.

Continue reading PepsiCo (PEP): A portfolio anchor

PepsiCo (PEP): A portfolio anchor originally appeared on BloggingStocks on Thu, 26 Feb 2009 13:35:00 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.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"If you're looking for a low-risk stock that's held up well in this dizzying market spiral, here it is: Fortis Inc. (TSE: FTS), my top pick for 2009," says Gordon Pape in The Canada Report.

"Fortis is trading at about the same level now in Canadian dollar terms as it was in early September. How many companies can say that?

"Don't confuse this with the troubled European financial giant of the same name. This Fortis is the largest investor-owned gas and electric distribution utility in Canada. Its regulated holdings include a natural gas utility in British Columbia and electric utilities in five Canadian provinces and three Caribbean countries.

"Third-quarter financial results were very strong and beat analysts' forecasts. Fortis reported net income of $49 million ($0.31 per share) compared to $31 million ($0.20 per share) in the same period of 2007 (figures in Canadian dollars). Year-to-date earnings were $169 million ($1.08 per share) compared to $114 million ($0.86 a share) for the first nine months of 2007.

Continue reading Top Stock Picks '09: Fortis (FTS.TO)

Top Stock Picks '09: Fortis (FTS.TO) originally appeared on BloggingStocks on Sat, 03 Jan 2009 13:00:00 EST. Please see our terms for use of feeds.

"Weakness in commodities suggests a screaming sign of an overreaction; it's time to take another look at a high-quality, high-yielding commodity stocks such as Southern Copper (NYSE: PCU)," says global investing expert Nick Lanyi.

In his High Yield International, he says, "With mines in Mexico and Peru, Southern Copper ranks #1 in total copper reserves of any publicly traded company, making it almost a pure play on a rebound in the metal's price." Here's his contrarian outlook.

"Southern Copper has enough reserves to continue its current rate of production for the next 80 years without a single expansion or acquisition.

"With copper prices falling, the firm's earnings are taking a hit -- and the dividend has recently been cut. Now that this cut has already been factored into the shares, I think it's a better time to look at the stock than just a few weeks ago.

"Based on 2008 dividends, the stock yields 12.7% at the current price. Even if the dividend comes down more, I look for a yield of 8-9% over the next 12 months.

Continue reading Southern Copper (PCU): Mining for high returns

Southern Copper (PCU): Mining for high returns originally appeared on BloggingStocks on Wed, 10 Dec 2008 10:18:00 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.

"Investors should be well rewarded in the coming years by buying with major U.S. defense companies at current prices," says Gregory Dorsey.

The contributing editor to Stephen Leeb's Income Performance Letter explains, "The U.S. has more than doubled our sales of armaments to foreign nations over the past three years. And regardless of who wins the election, we expect this to continue."

"We're adding one for growth and income to our portfolio now. Lockheed Martin (NYSE: LMT) is a premier defense contractor. It's best known for its fighter jets.

"For example, Lockheed is now developing the F-35, also known as the Joint Strike Fighter, the replacement for the current generation of front-line fighters.

"But the company is actually engaged in four broad business areas, each of which should enjoy strong growth for years to come.

Continue reading Bet on defense: Leeb's look at Lockheed (LMT)

Bet on defense: Leeb's look at Lockheed (LMT) originally appeared on BloggingStocks on Fri, 31 Oct 2008 14:00:00 EST. Please see our terms for use of feeds.

This post is one of six articles on beverage-related stocks. Here are five other investment ideas to sip on.

"Coca-Cola (NYSE: KO) is a remarkably profitable franchise," says Stephen Leeb. In The Complete Investor, he looks at its expanding market opportunities and expanding dividend.

" Selling its soft drinks and other products to just about every nation in the world, Coke has operating margins of 26.1% and return on common equity of 30.9%. On top of this, it delivers a dividend yield of 3%, higher than the S&P 500's 2.4%.

"And since the payout ratio is only 52.6%, the company could nearly double the yield with no problem at all. While the yield isn't likely to double overnight, Coke clearly has been moving in the direction of favoring higher dividends. Over the past five years, dividends have grown by 11.4% a year.

"In times of inflation, it is particularly critical to invest in companies that can generate growth in both earnings and dividends and that can handle cost pressures with high-margin products. Coke clearly fits this bill.

"The company has been expanding its reach in noncarbonated drinks like juice, water, and sports drinks such as Powerade and Vitamin Water.

"This latter area is Coke's fastest-growing segment, chalking up 12% volume growth in 2007 vs. just 4% for the company's eponymous Coke soft drinks.

"Clearly Coke has regained its footing with successful new product offerings as well as revitalized sales growth in international markets, which provide the bulk of sales and earnings.

"Looking ahead, the company's focus on new high-growth products indicates that earnings could keep growing in double digits, with fewer fluctuations than for most other U.S. large-cap stocks. This together with the dollar's chronic weakness makes multinational Coke a solid long-term holding for conservative investors."

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.

Coca-Cola (KO): 'A remarkably profitable franchise' originally appeared on BloggingStocks on Sun, 14 Sep 2008 10:00:00 EST. Please see our terms for use of feeds.

"Recent valuations in financial stocks suggest either 'the world is coming to an end' or there are some great values," says Gregory Dorsey.

Here, the contributing editor to the top-notch Leeb's Income Performance Letter takes a look at one such "bargain" in the sector: U.S. Bancorp (NYSE: USB).

"So far, the financial sector has written off more than $300 million in assets. By some accounts the damage will rise to $1 trillion or more before all is said and done.

"The selloff, which at its nadir was marked by a 55% year-over-year decline in the KBW Index, pushed the constituent members down to a collective 0.64 times book value and a dividend yield of 9%.

"At those levels, either the world is coming to an end or there are tremendous bargains for investors with the courage of their convictions. Looking hard at the data, we can only conclude the latter is the case, provided you're careful with your investment choices.

Continue reading Insiders bank on US Bancorp (USB)

Insiders bank on US Bancorp (USB) originally appeared on BloggingStocks on Tue, 26 Aug 2008 11:57:00 EST. Please see our terms for use of feeds.

"I've always been a big fan of putting into the market on a regular basis regardless of what is happening in the overall market," explains Chuck Carlson, long considered one of the advisory industry's leading experts on dividend reinvestment plans.

Here, the editor of The DRIP Investor offers a 10-stock "autopilot" portfolio that is diversified among 10 high quality dividend-paying stocks and requiring a monthly investment of under $500.

Carlson says, "If I've learned anything in the more than a quarter of a century of following the markets, it is this fact - buying stocks when you know you should (i.e. during sharp down moves) is really difficult. Our heads says we should; after all, substantial market downturns create the best values.

"But our emotions usually take control, thus making it very difficult to pull the trigger and put money into the market when stocks are falling.

"That's why I've always been a big fan of 401(k) plans. With these investment vehicles, investment programs are put on 'autopilot,' with dollars being put into the market on a regular basis (usually each paycheck) regardless of what is happening in the overall market.

"Fortunately, investors can duplicate the autopilot feature of 401(k) plans with their DRIP investments by taking advantage of automatic monthly investment features provided by most DRIPs.

Continue reading 'Autopilot' portfolio: 10 stocks for long-term investors

'Autopilot' portfolio: 10 stocks for long-term investors originally appeared on BloggingStocks on Fri, 15 Aug 2008 17:44:00 EST. Please see our terms for use of feeds.

"As the tech industry has matured, some technology companies are beginning to devote some of their cash flow to dividends," explains George Putnam, who notes, "This helps reduce downside volatility and offers some positive return when the stock prices lag."

In his industry-leading The Turnaround Letter, the advisor highlights some dividend-paying tech stocks; here a look at three of those picks.

"Many tech stocks have underperformed for the last couple of years as capital spending on technology products has been weak. The sector will eventually rebound, but the timing is far from certain.

"A conservative way to play the industry is to focus on technology stocks that pay dividends. That way you at least get paid something while you wait for the rebound. The following technology stocks pay decent dividends, many of them higher than the average 2.1% dividend paid by the stocks in the S&P 500 Index.

Continue reading Tech stocks with dividends: A trio of turnarounds

Tech stocks with dividends: A trio of turnarounds originally appeared on BloggingStocks on Fri, 18 Jul 2008 10:10:00 EST. Please see our terms for use of feeds.

"Frontline Ltd. (NYSE: FRO) is the 'mac daddy' of the oil transport business," says growth and income expert Bryan Perry, who has added the shares to the model portfolio of his 25% Cash Machine.

"Frontline is doing a much better job of executing profits in the current market for transporting crude oil. FRO posted first quarter results that showed a jump in profits of 40%, with a dividend hiked to $2.75 for the quarter. That translates into a current annual yield of 18.25%. Even better, the company forecasts continued strength in operations and quarterly distributions.

"This kind of profit growth is a result of FRO being leveraged to the spot market for day charter rates for double-hull tankers. The company is by far-and-away the largest shipping company, with 76 vessels and a market cap of $4.4 billion.

Continue reading Frontline (FRO): The 'mac daddy' of oil transports

Frontline (FRO): The 'mac daddy' of oil transports originally appeared on BloggingStocks on Wed, 25 Jun 2008 12:49:00 EST. Please see our terms for use of feeds.

"Dividend growth has become increasingly scarce on Wall Street," says says Chuck Carlson, an expert on dividend reinvestment plans. In his The DRIP Investor he looks at two stocks boosting their payouts.

"For the first time in five years, the number of companies in 2007 boosting their dividends declined nearly
6% from the previous year, according to Standard & Poor's. And the slowdown in dividend growth continued in the first quarter of 2008.

"The first quarter marked the seventh consecutive three-month period of year-over-year declines in the number of companies raising dividends. Through the first three months of this year, 19% fewer companies raised dividends than in the year-earlier quarter.

"Even more alarming, 83 companies decreased their dividends during the fi rst quarter, according to S&P. That's up from just 19 in the same period in 2007 and is the highest number of dividend decreases since 1991.

"Nevertheless, there are still plenty of companies willing to boost their dividends, and you can now buy such companies at bargain prices.

Continue reading Dividend boosters: Emerson Electric (EMR) and United Technologies (UTX)

Dividend boosters: Emerson Electric (EMR) and United Technologies (UTX) originally appeared on BloggingStocks on Thu, 05 Jun 2008 14:20:00 EST. Please see our terms for use of feeds.

"One essential commodity that is often overlooked by investors is water," says Gregory Dorsey, contributing editor to Stephen Leeb's Income Performance Letter.

He explains, "It's absolutely vital and is in growing demand for many reasons. And we've found an excellent way for income investors to ride this trend -- Paris-based Veolia Environnement (NYSE: VE). Here is his review.

"Veolia is not your typical utility, but it's still a utility that every income investor should consider. Veolia is the world leader in the management of water and wastewater services for local governments, industrial and service sector clients.

"It's also a world leader in the design, construction and operation of facilities for water and wastewater systems. With a focus on managing the complete water cycle from extraction to treatment to waste, Veolia stands ahead of its competitors.

"But although water is the chief attraction for us, Veolia generates steady revenue and income from other businesses as well.

"Its Veolia Environmental Services covers the entire solid waste cycle, including urban cleaning services, soil and site remediation, collection, sorting, transfer, treatment and recycling/recovery and is the world's largest waste management company.

Continue reading Water: An underrecognized commodity for Veolia (VE)

Water: An underrecognized commodity for Veolia (VE) originally appeared on BloggingStocks on Fri, 30 May 2008 10:30:00 EST. Please see our terms for use of feeds.

"Despite sharp intermediate setbacks, the bull market in energy is far from over," says Martin Weiss, editor of the Safe Money Report. Here, he looks at Kinder Morgan Energy Partners LP (NYSE: KMP).

"Earlier, there was some concern that a U.S. recession would dampen worldwide demand for oil, and that could still happen. But right now, the rapidly increasing consumption of crude oil by emerging markets is actually exceeding any declines in industrial nations.

"Kinder Morgan is an energy partnership that transports more than 2 million barrels of energy products every day - gasoline, jet fuel, natural gas liquids and more. It has two additional profit centers: Mammoth oil and gas storage facilities and a business supplying carbon dioxide, which is used to boost production from aging oilfields.

"All three of these businesses can be extremely lucrative in a rising oil market like this one. That's how KMP generated a record profit of $347 million in the first quarter - a big swing from a year-earlier loss of
$150 million.

"Partnerships like Kinder pay out quarterly dividends to 'unit holders' - the equivalent of shareholders in traditional public corporations. And KMP's latest payout is 96 cents per unit, up from 92 cents in the prior quarter and 83 cents a year earlier. The indicated yield is a hefty 6.5%.

"As much as we like KMP, we recognize that energy shares may be extended and could pull back in the near term. So here's what we suggest you do: Buy a half-position in KMP this month. Then hold back an equivalent amount of cash earmarked for a possible second bite at the apple later."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

Gushing gains: Income and growth at Kinder Morgan (KMP) originally appeared on BloggingStocks on Tue, 20 May 2008 13:01:00 EST. Please see our terms for use of feeds.

Investment Quality Trends -- one of the most respected newsletters in the advisory field -- uses a proprietary strategy that assesses historic level of stock price to yield; it's goal is to buy those stocks offering the best potential for downside protection and upside appreciation.

Here, editor Kelley Wright explains his methodology and highlights his current "Timely Ten" stocks that best match his time-tested criteria.

"Investors who wished to hold every stock in that we currently rank in the 'Undervalued and Rising Trend' categories, would need to hold one hundred twenty six stocks as of March; clearly too many positions to be practical.

"Our Timely Ten, therefore, is our reasoned expectation based on our methodology and experience for what we believe will perform best over the next five years.

"Do we believe that all 10 will go up simultaneously or immediately? Of course not. Our four decades of research and experience, however, leads us to believe that these stocks, purchased at current Undervalued levels, are well positioned for appreciation.

Continue reading The Timely Ten: Best stocks for quality and yield

The Timely Ten: Best stocks for quality and yield originally appeared on BloggingStocks on Fri, 11 Apr 2008 10:00:00 EST. Please see our terms for use of feeds.