incomestocks posts
FeedPosted Jun 25th 2008 12:49PM by Steven Halpern (RSS feed)
Filed under: Newsletters, Commodities, Oil, Stocks to Buy
"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
Posted Jun 5th 2008 2:20PM by Steven Halpern (RSS feed)
Filed under: Newsletters, United Technologies (UTX), Stocks to Buy
"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)
Posted May 30th 2008 10:30AM by Steven Halpern (RSS feed)
Filed under: International Markets, Newsletters, Commodities, Stocks to Buy, Green Stocks
"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)
Posted May 20th 2008 1:01PM by Steven Halpern (RSS feed)
Filed under: Newsletters, Commodities, Oil, Stocks to Buy
"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.
Posted Apr 11th 2008 10:00AM by Steven Halpern (RSS feed)
Filed under: General Electric (GE), PepsiCo (PEP), McDonald's (MCD), Johnson and Johnson (JNJ), Bank of America (BAC), Kimberly-Clark (KMB), Wells Fargo (WFC)
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
Posted Jan 1st 2007 2:30PM by Steven Halpern (RSS feed)
Filed under: Newsletters, Citigroup Inc. (C), ETF Investing
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.
Citigroup Inc. (NYSE: C) is the top conservative investment for 2007 from Kelley Wright. The editor of Investment Quality Trends notes, "I know this company has been public relations-challenged, but let's consider the fundamentals.
"First, it's not only undervalued, it's trading almost 71% below its historic undervalued dividend yield of 2.20%. In dollar terms, the stock can appreciate $37 to $89 and still represent excellent historic value!
"Second, the stock has earned an A+ ranking by S&P for earnings and dividend quality; S&P doesn't hand out an A+ easily. The stock has also earned our 'G' designation, which denotes a remarkable 10% annual dividend growth over the past 12 years. And, the stock has a P/E of 11 and is trading right at 2 times book value; numbers Benjamin Graham would like.
"CEO Charles Prince is feeling the heat on unlocking shareholder value. Based on recent management restructuring, it appears they will attempt to boost earnings by cutting costs and trying to squeeze value from every corner of this far-flung enterprise. At the end of the day though, I think Prince will have to do more and the Street will reward those efforts."
To see Kelley's favorite speculative idea for 2007, click here.
Posted Dec 22nd 2006 8:30AM by Steven Halpern (RSS feed)
Filed under: Newsletters, ETF Investing
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.
Canadian Oil Sands Trust (TSX: COS) is the favorite speculative idea from from Gordon Pape, editor of Internet Wealth Builder.
The advisor notes, "It may seem strange to select a company that owns more than 36% of the Syncrude Oil Sands Project in Alberta as a speculative pick but that's where we are with Canadian energy trusts as a result of the government's October 31 announcement that they would be subject to a 31.5% tax starting in 2011.
"Most of the trusts have seen their market prices clobbered as a result, but not this one. It's actually trading above where it closed on the afternoon prior to the announcement. There are three reasons for this. First, the price of oil has risen recently. Second, there is general expectation that the trust will raise its distributions next year (the current rate is C$0.30 a quarter).
"Finally, there is the asset value. Whatever happens to COS in terms of its corporate structure in the future, it will remain one of the preeminent players in the Oil Sands. Unless you think America is going to stop running on oil sometime soon, this is a stock you want to own for both income and growth."
To see Gordon's top conservative investment idea for 2007, click here.
Posted Dec 21st 2006 2:30PM by Steven Halpern (RSS feed)
Filed under: Newsletters, ETF Investing
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.
Gladstone Investment Corp. (NASDAQ: GAIN) is the top conservative investment idea from Adrian Day, editor of The Global Analyst. He explains, "An attractive vehicle for investors seeking above-average yield is the so-called Business Development Company.
"These are companies that lend money to small and middle-market companies, often receiving equity participation in addition to the interest on the loans. Because they do not pay tax at the corporate level, but pay out essentially all their net income to investors, yields tend to be high, and we've been successful with several previous recommendations, including Allied Capital and American Capital.
"One of the newest and most conservative is Gladstone Investment. Run by David Gladstone, who has had a multi-decade career in this industry, GAIN has been relatively cautious in investing its funds since going public in the middle of 2005. This is because of a sense that the market is overheated with either low returns or risky loans.
Continue reading Top Picks 2007: Adrian Day gains with GAIN
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