yield investing posts
FeedPosted Oct 6th 2010 10:00AM by Steven Halpern (RSS feed)
Filed under: Newsletters, ETF Investing, Recession
"We've all read stories about the states' budget woes. In the wake of falling tax revenues, brought on by the decline in the housing market and the recession, U.S. states are tightening their belts; so why would I invest in state municipal bonds?" asks income specialist
Amy Calistri.
The editor of
The Daily Paycheck explains, "Here's the reasoning behind our recommendation for PIMCO Municipal Income (
PMF).
"In the wake of falling tax revenues, brought on by the decline in the housing market and the recession, U.S. states are tightening their belts. Some states, such as California, are facing sizable budget challenges.
Continue reading PIMCO Municipal (PMF): A 10% Tax-Equivalent Yield
Posted Sep 22nd 2010 1:30PM by Steven Halpern (RSS feed)
Filed under: Microsoft (MSFT), Intel (INTC), Exxon Mobil (XOM), Newsletters, International Business Machines (IBM), Chevron Corp (CVX), Stocks to Buy, Travelers Companies Inc. (TRV)
"Income-hungry investors have spoken, and they have chosen bonds as their investment of choice," notes dividend expert Chuck Carlson, who prefers to look to blue chip stocks for potential capital gains and income growth.
The editor of The DRIP Investor explains, "In 2009, a record $375 billion of new money flooded into bond funds. Over the same period, domestic stock funds saw $40 billion go out the door.
And through the first half of 2010, taxable bond funds had net new cash flow of $136 billion versus outflows of $18.4 billion for domestic stock funds. This torrent of money has driven down the yields on bonds to microscopic levels.
"The upshot is that, on a relative basis, dividend-paying stocks seem quite cheap compared to bonds.
Continue reading The Dow's Best Buys for Growth and Income
Posted Sep 14th 2010 11:00AM by Steven Halpern (RSS feed)
Filed under: Newsletters, Stocks to Buy
"As a result of the Financial Reform Act, certain trust preferreds can offer investment-grade safety, robust yields of around 6-7%, and capital gains potential," suggests Carla Pasternak.
The editor of High Yield Investing explains, "Among our top picks in this group are Bank of America Capital Trust IV, 5 7/8% Capital Securities (BAC-U) and Wells Fargo Capital IX 5.625% Trust Preferred Securities (JWF).
"Traditional preferreds are an equity investment in a company. They are normally perpetual -- that is, they have no maturity date. In contrast, trust preferreds are debt, not equity. As such, they provide greater safety than traditional preferred stock.
Continue reading Bank on Preferreds: Bank America and Wells Fargo
Posted Aug 16th 2010 1:00PM by Steven Halpern (RSS feed)
Filed under: Newsletters, Canada, Commodities, Oil, Stocks to Buy
"Atlantic Power Corp. (AT) operates 14 power generation projects and one transmission line in the U.S. and sells power mainly to electric utilities in major U.S. markets," notes income specialist Carla Pasternak.
The editor of High-Yield International explains, "Atlantic took a huge step forward when shares became listed on the NYSE on July 23rd. This listing will add recognition and liquidity to the company.
Investors can now more easily purchase shares without the extra commission associated with purchasing foreign securities. The increased exposure that the NYSE brings could also be advantageous to the share price.
Continue reading NYSE Listing Boosts Atlantic Power
Posted Jul 30th 2010 1:40PM by Steven Halpern (RSS feed)
Filed under: International Markets, Newsletters, Mutual Funds, ETF Investing
"We've had some good luck recently in the bond arena; now I've found another trading opportunity: Templeton Global Income Fund (GIM), a global government bond fund that yields 5.6%," says growth and income expert Richard Band.
The editor of Profitable Investing explains, "The fund is run by one of the finest international bond managers, Dr. Michael Hasenstab. Plus, I think we're in for a nice capital gain as the dollar settles down from its torrid run against most foreign currencies.
"Over the past decade, this closed-end fund has rolled up a sizzling total return of 235% at net asset value (through mid-June). Meanwhile, the S&P 500 stock index has lost 11%, even with reinvested dividends.
Continue reading Templeton Global Income (GIM): "Time to Pounce"
Posted Jul 2nd 2010 11:00AM by Steven Halpern (RSS feed)
Filed under: International Markets, Newsletters, Commodities, Oil, Stocks to Buy
"Investors should consider adding exposure to the oil tanker industry; this business is notoriously volatile, as tanker rates fluctuate," says Elliott Gue.
The editor of The Energy Strategist explains, "Nonetheless, I expect the back half of the year to be a solid environment for tanker companies. Moreover, many stocks in the group offer substantial dividend yields. One of our favorites is Nordic American Tanker Shipping (NAT), which yields over 8 percent.
Continue reading Energy Expert Eyes Nordic American Tanker (NAT)
Posted Jun 30th 2010 12:45PM by Steven Halpern (RSS feed)
"Enterprise Products (EPD) is is a fine example of the baby being thrown out with the bath water," says Jim Trippon.
The editor of Dividend Genius newsletter explains, "The fundamentals for the energy company here have not changed, if anything they remain as strong as ever and the decline in the units is more the result of Enterprise being viewed as an energy name, not weakness in the company's business.
"Case and point: Enterprise was easily able to tap the capital markets in May, selling $400 million in notes due in 2015 at a fixed rate of 3.7%, $1 billion in notes due in 2020 at a fixed rate of 5.2% and $600 million in notes due in 2040 with a fixed rate of 6.45%. Of course, those yields pale in comparison to the 7.1% you get by owning Enterprise units directly.
Continue reading Enterprise Products (EPD): A Profitable Niche in Shale
Posted Jun 4th 2010 11:40AM by Steven Halpern (RSS feed)
Filed under: Newsletters, ETF Investing, Recession, Financial Crisis
"When it comes to bond managers, you won't find better than Bill Gross, founder and Managing Director of Pacific Investment Management Company (PIMCO)," asserts Amy Calistri.
The editor of The Daily Paycheck explains, "Gross is considered the world's foremost fixed income authority. And when you own the PIMCO Corporate Income Fund (PCN), you tap into his expertise and enviable track record.
She continues, "Since its inception in December 2001, the fund has enjoyed an average annual return of +11.3%. And Gross doesn't generate those returns by holding high-risk junk bonds. The fund's portfolio has an investment-grade credit quality.
Continue reading PIMCO Corporate Income Fund (PCN): Investing with Bill Gross
Posted May 19th 2010 1:30PM by Steven Halpern (RSS feed)
"In our latest report, we focus on floating rate funds, also referred to as bank loan funds. In an era where money market funds are yielding about about zero percent, the two floating rate funds reviewed here sport 30-day yields on either side of 3.5%," says
Walter Frank.
The editor of
MoneyLetter explains, "They are considered short-term funds, their prices fluctutate (unlike those of money funds), and they carry a higher degree of risk. Recall that most bonds, issued by corporations or governments, have fixed interest rates that do not change for the life of the bond.
Continue reading Floating Rate Fund Favorites
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