"They don't get much more blue-chip than General Electric (NYSE: GE)," says Nilus Mattive. I his top-notch Dividend Superstars, he takes a look at the industrial gain which offers an indicated yield of 4.4%.
"GE is the only company that has remained in the Dow Jones Industrial Average from day one, the company was founded in 1890 by none other than Thomas Alva Edison to market his various inventions.
"GE's broad diversification is both a blessing and a curse. On one hand, it affords the firm plenty of protection from a major decline in any one business.
"On the other, it has led to a very complicated enterprise with inherently limited growth prospects. Yet despite the company's size, it has still managed to increase its revenues internally by about 9% a year.
"Housing starts have swooned, foreclosures have jumped and home prices saw their steepest drop in 26 years," notes income expert Carla Pasternak, who nevertheless is suggesting a real estate investment.
"REITs and housing are both real estate, but that's where the likenesses begin and end. Property-holding equity REITs invest in commercial real estate. And commercial properties continue to generate steady cash flow from rental income, thanks to long-term leases.
"Above-average dividends are what allow REITs to pack a punch. These companies must distribute at least 90% of their profits to shareholders, making them especially attractive to income investors.
"Founded in 1992, Omega manages a $1.3 billion portfolio of over 200 hospitals and nursing homes in diverse locations across 28 states. The company leases the properties to established healthcare operators.
In the latest issue of his industry leading No-Load Fund Investor, fund expect Mark Salzinger reviews convertible bond funds, highlighting his two favorites.
"Convertibles are hybrid securities, often slight below investment grade, which can be redeemed for stock at a predetermined price and quantity.
"Because their values are often closely correlated to the value of the underlying equities, convertible bonds have more capital appreciation potential also more volatility than plan vanilla corporate bonds. However, because the value of their interest payments creates a floor of value, they tend to be less volatile than stocks.
"Our top convertibles pick is Fidelity Convertible Securities. The fund has been managed by Tom Soviero since 2005, since when it has generated an annualized return of 11.7% vs. 5.7% for Merrill Lynch All Convertible Index.
"Soviero is one of Fidelity's best portfolio managers. He favors convertibles that trade in line with the movements of the underlying equity's price and he wants the underlying equity to have an inexpensive valuation.
"The market is pricing publicly-traded partnerships as if they're headed for bankruptcy," says Neil George who sees high yield and value in select issues. Here's two ideas from The Partnership Letter -- a global infrastructure play and a real estate investment trust.
"There are some darn good partnerships out there that are indeed worth the near-term risk, even amid the probability of lower stock prices.
"Partnerships are characterized by high cash generation and the maximization of depreciation and other tax deductions. They then pay out as much cash as possible to unitholders. And with prices so low, we get to buy into assets that in many cases are worth a lot more in terms of liquidation value.
"Although Pfizer (NYSE: PFE) recently posted an 18% drop in its first-quarter earnings, I remain a long-term bull on the shares," notes Nilus Mattive in the income and growth oriented Dividend Superstars.
"Results were hurt by tougher generic competition for the company's blood-pressure drug Norvasc and allergy treatment Zyrtec. Pfizer pulled in $0.41 a share in the quarter, but would have earned $0.61 excluding costs associated with two acquisitions.
"A lot of investors are treating the poor earnings as a death knell for the company, especially since Lipitor - PFE's biggest product - will also lose patent protection in 2010. However, I've watched countless drug stocks go through these cycles before, and I continue to believe it's smarter to buy when things look the worst.
"This is still the world's largest drug company ... it still delivers big, fat dividend checks ... and it is making strong moves to reorganize its operations and focus on new drug development. For all those reasons, I remain positive on the shares."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
"Give muni bonds a good look." says Richard Moroney in Dow Theory Forecast, a leading "blue chip" newsletter that has been publishing for over five decades, who offers a trio of Vanguard funds for investors seeking safety and income.
The advisor explains, "Municipal bonds are showing signs of life, presenting investors with an intriguing opportunity." Here, he review the situation and offers some favorite investment vehicles.
"Muni bonds usually yield less than Treasurys because interest payments from municipals are exempt from federal income taxes.
"But in today's topsy turvy market, intermediate-term municipal bonds now yield around 3.7%, versus 3.6% for 10-year Treasurys. A tax-free yield of 3.7% is the equivalent of a taxable yield of 5.5%, assuming a 33% federal tax bracket.
"Uncertainties about the economy and credit concerns have weighed on bonds, lowering prices and raising yields. Hedge funds have also dumped muni bonds in an attempt to cover trading strategies gone sour.
For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.
"Over the past 18 months, Canadian oil and gas producer trust has endured a trial by fire. First natural gas prices started tumbling.
"Then the Conservative party government announced it would begin taxing trusts as corporations starting in 2011, and restricted the number of shares trust can issue. Finally, this fall investors have bailed out of everything remotely economically sensitive.
"Through it all, however, the Enerplus has remained rock-solid as a business. For starters, the yield of nearly 13% -- paid monthly -- is backed by a modest 70% payout ratio. And that ratio was achieved by selling oil in the third quarter at less than $70 a barrel.
For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.
In his Forbes ETF Trader, Jim Lowell says, "My top conservative pick for 2008 is the iShares Lehman TIPs (NYSE: TIP). This exchange-traded fund enters the mix as a less-spirited way to play the recessionary hand that 2008 could deal.
"While the performance behavior of the underlying holdings will make the case for this being nothing more than a dolled up basket of long-term Treasuries, the market reality is that in times of duress, the momentum tends to favor these instruments over most others.
"But don't buy it for yield or price. Instead, view it as a life raft on the deck of all the above picks. It's good to know it's there if you need it -- and according to consensus estimates, in 2008 it's not a case of if but when."
As an alternative, conservative investors can buy the iShares S&P 100 Index Fund (ASE: OEF). The S&P 100 Index is comprised of the largest 100 stocks in the S&P 500 Index. As such, it's an intermediate play between the Dow 30 and the S&P 500, and ought to continue to benefit from the current flight to quality in '08.
For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.
"These two companies have been heavily shorted by speculators because of their exposure to subprime mortgage defaults. At current pricing, they are selling at half book value and only three times earnings.
"The reason for current concern is that they will lose their AAA credit enhancement ratings and therefore their ability to conduct new business, something I don't think is likely because there are various remedies to forestall such an event.
"For 2008, the demand for their services should grow substantially since the reliance by lenders on credit ratings alone has been seriously eroded. Also, their insurance of CMOs and CDOs only protect the most senior tier of a multi-tiered debt instrument, so their loss exposure is very marginal and years off.
While an individual investor might not be comfortable on their own using a buy-write call strategy income expert Richard Lehmann uncovers a closed-end fund that allows the investor to easily participate in this othereise sophisticated options approach that is used to generate high income.
In his Income Security Advisor ETF Investor he explains, "Buy-write funds have the advantage of moderating market swings because of the covered call writing strategy and because the funds have a yield that tends to support the stock price."
He notes that the BlackRock family of buy-write funds have taken a hit in the last month, which he says is "for no discernable reason." The result? "We think these are great buys at current prices," he says.
In particular, he likes the BlackRock World Investment Trust (NYSE:BWC) which he notes invests in global equity securities, using a buy-writes strategy to enhance its dividend payouts."
According to Lehmann, the fund invests at least 75% of its assets in equities and may invest up to 25% of its assets in income producing securities such as bonds and preferreds. He adds that the fund invests 29% of its funds in the U.S. with the next highest country the United Kingdom at 12%. The remainder is invested in concentrations of less than 8%.
He explains, "The fund writes covered calls on about 45% of its holdings. The fund invests in various sectors with the highest concentration in finance and banking." Lehmann points out that the fund trades at a 3.07% discount to its net asset value and yields 8.32%.
For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.
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 Stocks Report.
The top conservative pick for 2007 from income specialist Carla Pasternak is The Zweig Total Return Fund (NYSE: ZTR). The editor of High Yield Investing says, "ZTR is a diversified closed-end fund that seeks a high total return (dividends, interest, and capital gains) by investing in both stocks and bonds
"Over half of ZTR's portfolio is in risk-free U.S. Treasuries. The balance is mostly in blue-chip dividend-payers. The Treasury bonds carry the highest credit rating possible with virtually no risk of default. They have an average duration of about six years, making the fund well positioned for a stable interest rate environment.
"The fund has paid dividends every month for the past two decades. Its latest monthly payment of $0.043 a share equates to $0.52 annually, providing a 9% yield at current share prices. A 1.02% management fee brings the effective yield to 8%.
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.
The iShares Dow Jones Select Dividend Index (NYSE: DVY), an exchange-traded fund, is the top conservative idea for 2007 from Leonard Goodall, editor of No-Load Portfolios. He explains, "I like this ETF for two reasons.
"The first reason is that the fund, as the name implies, guarantees a cash flow to investors. The fund's strategy is to buy companies that pay a larger-than-average dividend and that have a record of consistently raising their dividend. The provision of current income is often a high priority goal for conservative investors.
"The second reason is that the fund provides a good probability of achieving capital gains for the long-term investor. There is abundant evidence that dividend-paying stocks outperform other stocks over time. A major reason for this is that dividends provide a cushion against price declines during bear markets.
"ETFs have given the individual investor the ability to target specific needs in a portfolio. This fund was the first of the dividend-oriented ETFs. There are a number of new ones entering the market; this one, however, is established and its annual expense ratio of just .40 is still the lowest available. It has a one-year annual return of 17.1% and a three-year average annualized return of 13.9%."
To see Leonard's favorite speculative ETF for 2007, click here.
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.
Brookfield Asset Management Inc. (NYSE: BAM) is the favorite conservative stock from Gordon Pape, editor of Internet Wealth Builder. He explains, "Brookfield is an international conglomerate with interests in real estate, power generation, and infrastructure.
"Although its headquarters are in Toronto, its major holdings are in the U.S. and include such blue-ribbon office properties as the World Financial Center in New York and the Bank of America Plaza in Los Angeles. All told, the office portfolio holds 65 premier properties in North America and Europe. The company also owns some $1 billion in residential assets.
"On the power generation side, Brookfield has 137 hydro-electric stations in North America and Brazil with almost 3,700 megawatts of installed capacity. The company is also involved in the development of several wind power projects in Canada.
"I first recommended Brookfield's predecessor company, Brascan, back in 1997, and since the share price has increased more than five times. That's a great history, but there is much more to come from this well-managed company. Currently the stock pays a quarterly dividend of $0.16 a share. Buy this one for income and long-term growth."
To see Gordon's top speculative idea for 2007, click here.
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 Stocks Report.
Ares Capital (NASDAQ: ARCC) is the favorite speculative stock for 2007 from income specialist Carla Pasternak. The editor of High Yield Investing says, "Ares is a business development company that invests in private or thinly traded companies.
"Known as BDCs, these companies either buy an equity interest in promising firms, or they provide them with loans at above-average rates. Since going public in October 2004, Ares has built a $900 million portfolio of debt and equity securities, with a take in about 50 privately owned businesses.
"Ares is one of the fastest dividend growers I have seen. It has raised its dividend every single quarter for the past year, and its quarterly payouts have increased 33% in just two short years since the company paid its first dividend.
"If you annualize Ares' latest declared quarterly dividend of $0.40 per share, that brings the security's payout to $1.60 per share ($0.40 x 4 payments), giving the stock a forward yield of 8.3%. However, if you add in the $0.10 special dividend paid at the end of 2006, ARCC yields 8.8%.
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.
Duke Energy (NYSE: DUK) is the top conservative investment for 2007 from Todd Salamone, editor of Equity WealthBuilder. He observes, "With the Dow utility average trading at all-time highs amid a low interest rate environment, it is amazing that utility stocks have received little attention.
"Meanwhile, Duke is a strong name in the sector. Not only does it offer strong capital appreciation potential, but the 3.87% yield rates among the top dividend yields in the group.
"In January 2007, the company plans on spinning off its natural gas operations into a new, publicly traded company called Spectra Energy. The move is designed to unlock value in both the natural-gas operation and the electric utility, with the streamlined businesses expected to operate more efficiently. This spin-off, therefore, is a positive catalyst for the upcoming year.
"From a technical perspective, DUK has become a relative-strength leader, outperforming the Dow Jones Utility Average since October 2005. Turning to DUK's sentiment backdrop, an earnings miss in early November 2006 did little to derail the shares.
"They don't get much more blue-chip than General Electric (NYSE: GE)," says Nilus Mattive. I his top-notch Dividend Superstars, he takes a look at the industrial gain which offers an indicated yield of 4.4%. 
"My favorite aggressive speculation for 2008 is 
In his 
To see Leonard's favorite speculative ETF for 2007, 
To see Gordon's top speculative idea for 2007, 
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