Two of the savviest advisors around are Mark Skousen and Richard Lehmann. Both are noted experts in income investing and both have recently issued buy recommendations for the same stock.

Skousen, in his High-Income Alert, and Lehmann, in his Forbes/Lehmann Income Securities Investor, both look at Penn West Energy Energy Trust (NYSE: PWE).

Skousen explains, "The dollar continues to slide. Oil is approaching $100 a barrel, and gold, a sign of global instability, now is above $800. And the mortgage credit market continues to soften.

"All of these conditions make it difficult to profit, even in our high dividend-paying stocks. Fortunately, history is on our side. Studies show that a well-diversified portfolio of dividend-paying stocks tend to be more stable during difficult times.

"Our safest position is in oil stocks, so we are going to add another oil & gas stock to our portfolio: Penn West Energy. The trust bought out Canetic recently to create the largest oil and gas trust in North America.

"The combined trust is worth more than $15 billion and has the equivalent production of more than 200,000 barrels of oil a day. Penn West holds interests in western Canadian oil and natural gas pools, along with opportunities in oil sands, coal-bed methane, shale gas, and enhanced oil recovery.

"Penn West is paying an incredible dividend that now is about 35 cents a month, compared to 30 cents a year ago. The company's current dividend yield exceeds 13%."

Continue reading Two picks for Penn West (PWE)

Two picks for Penn West (PWE) originally appeared on BloggingStocks on Fri, 23 Nov 2007 10:15:00 EST. Please see our terms for use of feeds.