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Top Picks 2011: Fidelity Dividend Growth (FDGFX)

Fidelity logoThis post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.

"Fidelity Dividend Growth (FDGFX), a top pick for the coming year, is one of Fidelity's more broadly diversified growth funds," says fund expert Jack Bowers.

The editor of Fidelity Monitor explains, "Fund manager Larry Rakers has a structured approach to bargain-hunting that has outperformed the S&P 500 this year.

Continue reading Top Picks 2011: Fidelity Dividend Growth (FDGFX)

Cushing MLP Total Return: A 'Cash Machine' in Gas Partnerships

"It looks like we have a golden opportunity to take advantage of the macro natural gas theme, involve some professional management, diversify risk, collect a double-digit yield in the form of quarterly distributions and have a security that's appropriate for IRAs and self-directed retirement plans," says income expert Bryan Perry.

The editor of The Cash Machine explans, "I'm speaking of the Cushing MLP Total Return Fund (SRV), a NYSE listed closed-end fund that owns most of the leading gas Master Limited Partnerships.

The objective of the Cushing MLP Total Return Fund is to obtain a high after-tax total return from a combination of capital appreciation and current income. The fund will try to accomplish this by investing at least 80% of its net assets in MLPs.

Continue reading Cushing MLP Total Return: A 'Cash Machine' in Gas Partnerships

Janus Flexible (JAFIX): A 'Sterling' Track Record

Janus Flexible Bond (JAFIX) is a so-called multi-sector bond fund whose consistently good year-to-year performance has resulted in a sterling long-term record," says fund expert Mark Salzinger.

The editor of the No-Load Fund Investor explains, "For all of 2008 and 2009, Flexible Bond produced a cumulative total return of 18.9%, vs. only 6.9% for the multi-sector funds tracked by Morningstar. Over the past five years, Flexible Income's annualized return of 6.6% places it among the top 7% of all the fixed-income funds we cover.

"Over the past two years, the fund was the 10th best performer of every fund we track. In 2008, when most funds with significant holdings of corporate bonds produced major losses, Flexible Bond produced a gain of 5.6%.

Continue reading Janus Flexible (JAFIX): A 'Sterling' Track Record

Evergreen Global (EOD): Double-Digit Yields

"With the recent run-up in the market, quality double-digit yield opportunities are few and far between. So I was pleasantly surprised when I came across Evergreen Global Dividend Opportunities (EOD)," says Amy Calistri, an income advisor who focuses building and maintaining a monthly dividend portfolio.

In her The Daily Paycheck, she explains, "I'd been looking for a solid income producer more heavily slanted toward equities. Bill Gross, PIMCO founder and recognized bond expert, believes stocks may outperform bonds in the foreseeable future. I'm inclined to agree with him.

Continue reading Evergreen Global (EOD): Double-Digit Yields

In the 'Vanguard' with Wellington Fund (VWELX)

"How can you get the income and growth you need while keeping your risk down?" asks Philip Springer, noting "The two areas of the financial markets we would emphasize now are the stocks and bonds of financially strong companies with dominant global businesses."

The contributing editor to Stephen Leeb's Income Performance Letter explains,"In general, these companies offer the best values in both the stock and bond markets, in the wake of 2009's exuberance. And this category will hold up better than most when the markets undergo their long overdue price corrections.

Continue reading In the 'Vanguard' with Wellington Fund (VWELX)

Defensive Portfolio for High Income

"Interest rates on money markets, conventional bonds and bank CDs are extremely low by historical standards, especially given that the economy faces above average inflation risks in the years ahead," notes Dr. Marvin Appel.

The editor of Systems & Forecasts explains, "As a result, we are finding that there is a lot of demand among investors for an investment program that can produce attractive levels of income without being too risky; as such, we are introducing a high income portfolio.

Continue reading Defensive Portfolio for High Income

A four-pack of income fund favorites

"We believe it is prudent to lock in some profits, and focus on developing an income stream in the event that we get either a major correction or double-dip recession," says Glenn Rogers.

The contributing editor to The Internet Wealth Builder suggests, "It seems to me to that the most promising areas worth considering are high-yield bond funds and international real estate funds, preferably with some underlying income." Here, the reviews four income ideas.

"I like high-yield bond funds, even though there is concern that interest rates will rise in 2010.

Continue reading A four-pack of income fund favorites

Income trio: Favorite funds for yield

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

"Some types of bonds have rarely looked as appealing as they do now compared with other income alternatives," says Philip Springer. In Leeb's Income Performance Letter, the advisor looks at three favorite fixed-income funds -- one invested in mortgages, one in corporates and one in municipal bonds.

"Our top pick among fixed-income funds now is U.S. government-guaranteed, mortgage-backed securities (MBS) issued by government agencies.

Continue reading Income trio: Favorite funds for yield

Best income buys: Wealth building and pre-retirement

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

"Assuming you want to invest a little more in the markets now, which ETF should be your first choice?" asks ETF expert Mark Salzinger.

In The Investors's ETF Report, he reveals his favorite picks from from two of his model portfolios -- a favorite for long-term wealth building and one investors still in their pre-retirement years.

Continue reading Best income buys: Wealth building and pre-retirement

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

"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

Top Stock Picks '09: Gateway Fund (GATEX)

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.

Leading fund expert Ron Rowland looks to a conservatively managed mutual fund as his favorite investment play for 2009. In his All Star Investor, the advisor takes a look at Gateway Fund (GATEX).

"Gateway Fund is a conservative fund that has shown equity-like returns with bond-like volatility for over 20 years.

"From inception in 1988 through November 2008, GATEX had a +7.6% annual return -- slightly behind the S&P 500 but with a fraction of the volatility.

"More recently, the fund's steady returns are beating the market by a mile. Gateway pioneered the 'buy-write' strategy of owning stocks and selling call options to earn income.

"The fund is at its best in choppy, sideways markets -- which makes it an excellent choice for risk-averse investors who don't want to abandon equities entirely in this uncertain economy."

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.

'Money Map' to safe returns: A trio of income funds

"Investors should not forget that we tend to have the best news at market tops and the worst news at or near the bottoms; that means that a rising tide of bad news is an important part of the bottoming process," explains Keith Fitz-Gerald.

Emphasizing the need for patience in the current environment, the editor of The Money Map Report is maintaining a diversified portfolio including several quality income-oriented positions from Nuveen, PIMCO ad Vanguard. Here's a trio funds for safety and income.

"Nuveen Quality Income Municipal Fund (NYSE: NQU) seeks current income exempt from regular federal income tax. A lot of folks are fleeing munis right now because they're fearful of the credit crisis and an anticipated wave of municipal defaults.

"What makes NQU appealing is that it concentrates substantially all of its assets in a diversified portfolio of AA federal tax-exempt investments, which gives it an added safety cushion. Right now the taxable equivalent distribution rate is 9%.

"And don't forget: Right now it's selling at 7.97% below its net asset value. This gives us a super way to potentially achieve over 16% this year. That's especially appealing given how the markets are behaving lately.

Continue reading 'Money Map' to safe returns: A trio of income funds

Fund expert offers tip on TIPs

"Like other US Treasuries, Treasury Inflation Protected Securities (TIPs) have virtually no credit risk," explains fund expert Mark Salzinger.

The editor of The No-Load Fund Investor adds, "Unlike other US Treasuries beyond short-term bills, however, TIPs also have no inflation risk." Here, he looks at an EYF based on TIPs.

"Twice a year, TIPs' principal valuis are adjusted upward by the amount of the increase in the Consumer Price Index Urban (CPI-U), thus protecting their holders against increases in inflation.

"The total return of the bond equals its yield plus the change in principal value based on inflation, changes in real interest rates (published interest rates minus inflation) and supply-demand in the market for TIPs.

"TIPs' yields are lower than those of regular Treasury sercurities of similar maturities. That's one of the disadvantages of TIPs.

"The other is that any increase in principal value due to the biannual inflation adjustment gets taxed every year as if it were received income.

Continue reading Fund expert offers tip on TIPs

Bailout blues? 'Buy closed-end bond funds'

"With the government set to bail out a trillion dollars in debt, what should you buy?" asks Neil George, editor of Personal Finance. "Bond funds are the foundation that steadies your portfolio."

"While the Fed and the Treasury work to bail out a trillion dollars in debt, other governments around the planet seems to be jumping on board this train; similar deals are being cut from the UK to Russia to Japan and beyond.

"The result is a big surge of short-covering and rampant buying as the markets trade and party like it's 1999 again. But is this a good thing?

"Although it might satisfy the political agendas of government leaders, these moves do pretty much nothing to restore normal risk and reward characteristics that make for a productive free market system.

"Meanwhile, bonds are what continue to perform. The rally in stock might continue for a time, but when more and more serious investors and traders begin to figure out the ramifications of the government's heavily expanded role in the formally private sector, it won't take long for another selloff to materialize.

Continue reading Bailout blues? 'Buy closed-end bond funds'

FirstTrust/Aberdeen Emerging (FEO): Global growth and income

"Closed-end funds are a terrific way to gain diversified exposure to high-yielding foreign stocks," says global expert Nick Lanyi.

In his High-Yield International, he explains, "My latest closed-end fund pick, First Trust/Aberdeen Emerging Opportunity Fund (NYSE: FEO), gets income any which way it can from the world's fastest-growing economies." Here's his review.

"For U.S. investors looking to broaden their horizons, closed-end funds offer an easy way to gain exposure to a diverse mix of foreign stocks without venturing beyond U.S.-based stock exchanges.

"Not only that, they often provide access to stocks that don't trade in the U.S. -- including companies that only institutional investors (such as a fund manager) can buy.

"But these funds offer a bonus that mutual funds don't: in some cases you can purchase them at a discount to their net asset value (NAV) -- the underlying value of the fund's portfolio.

"That's because closed-end funds trade on the major stock exchanges, just like stocks. Their prices are determined by investor sentiment and supply and demand, in addition to the value of the investments they hold.

"Led by Brett Diment, the management team at Aberdeen Asset Management -- which specializes in emerging markets -- has assembled a portfolio that exposes investors to some of the fastest-growing economies in the world: Brazil, Mexico, China, India, Turkey, Argentina and Venezuela are among the fund's top holdings.

Continue reading FirstTrust/Aberdeen Emerging (FEO): Global growth and income

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Last updated: February 12, 2012: 12:15 AM

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