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Potential New Additions to My "Double-Barrelled Growth" Portfolio |
Published: April 5, 2005
My monthly High-Yield
Investing newsletter
is devoted exclusively to income-oriented investments. In each issue I
not only introduce my readers to a variety of new high yielding
investing ideas, but I also provide continued guidance on several dozen
of the market's best and brightest income-generating opportunities. I
organize these various picks into the following four model
portfolios...
"Income Anchors"
Portfolio -- This portfolio contains stocks with above-average
dividend yields. And since dividend payments are by no means guaranteed,
I only invest in financially solid companies that should have the
ability to continue paying sizable dividends in the years ahead.
Ultra-High Yield Portfolio
-- This portfolio focuses on quality investment opportunities that offer
above-average dividend yields. These include real estate investment
trusts (REITs), royalty trusts, master limited partnerships (MLPs),
preferred shares and income deposit securities, among others.
Double-Barrelled Growth Portfolio -- Stocks in this portfolio
offer investors the best of both worlds -- a steady income stream and
strong capital gains. Although some of the stocks in this portfolio may have
average or below-average dividend yields (versus the S&P 500) at the
time of purchase, all are expected to deliver above-average returns
over the long term.
Dividend-Focused Funds Portfolio -- This portfolio includes a
mix of income-oriented-ETFs (exchange-traded funds) and a variety of
outperforming mutual funds. These funds should provide a steady income
stream and also help diversify an income portfolio.
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In the analysis below I'll
introduce you to several quality companies that I'm now considering adding
to my Double-Barrelled
Growth Portfolio. In addition, I'd encourage
you to stay tuned for further updates throughout the next several weeks.
In those updates I'll introduce you to a variety of additional stocks
and funds that I'm now considering adding to my other portfolios.
"Double-Barrelled
Growth"
Watch List
Although I reserve my actual Double-Barrelled
Growth Portfolio picks
for paid subscribers to my monthly High-Yield
Investing newsletter,
below you'll find several companies that I now considering as possible
new additions to this portfolio. I am constantly researching and
following these stocks, and I may eventually add them to this portfolio
if and when their risk/reward profiles meet my stringent investment
criteria:
| Company |
Symbol |
Apr.
5 Price |
Yield |
| Freeport-McMoran |
FCX |
$39.16 |
2.5% |
| Manulife |
MFC |
$46.10 |
1.8% |
Freeport-McMoRan
Copper & Gold (FCX, $39.16) -- With many investors focused on
oil prices, the fact that copper recently hit a record high above $3,290
a ton has gotten little press. A global copper producer,
Freeport-McMoRan has benefited greatly from the +14% gain in copper
prices so far this year. And going forward, strong demand from China and
tight supplies are expected to keep prices high. For a mining company,
the stock pays a solid yield of 2.5%. And with a P/E of 17 based
on estimated 2005 earnings, FCX appears to be a good bargain.
Manulife Financial (MFC, $46.10) -- This
Canadian-based company now ranks as North America's second largest life
insurer (after American International -- AIG). Last year, the company
bought financial services giant John Hancock and it's now stamping the
well-known John Hancock brand name on its U.S. financial products. This
brand name recognition should help Manulife expand its product line in
the U.S.
In addition to life insurance, about a third of Manulife's profits come
from annuities, pensions, and other financial products. The firm has
also been expanding its footprint in Asia, with over 20,000 agents now
selling its life insurance policies in Hong Kong and elsewhere.
Company earnings are expected to grow +25% this year and +12% next year.
With a P/E of just 13 times projected earnings of $3.51 this year, the
shares are trading at a discount to their one-year growth rate. The
stock yields 1.8% and pays an 84-cent annual per share dividend, making
MFC a compelling choice for growth and income-oriented investors.
Important
Note: The above article was merely a small excerpt from a
recent issue of our premium, income-oriented
investing newsletter -- High-Yield Investing. In each
issue of that newsletter, editor Carla Pasternak delivers a host of
other investing ideas and tips designed to help you earn steady gains
and above-average income from your portfolio. To receive your copy of
our most recent High-Yield Investing newsletter, as well
as other guidance similar to this every month, you'll need to register
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to continue...
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Please Note: The above article was merely a
small excerpt from an issue of our premium income newsletter -- High-Yield
Investing. In each issue Carla Pasternak presents
a wealth of information and timely investment ideas to help you earn a
steady income stream from your investments. To receive a
complimentary three-week trial or to learn more about our High-Yield
Investing service, please visit the following link: http://www.StreetAuthority.com/subscribe.asp#hy |
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