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Carla Pasternak's Premiere Issue of High-Yield International Just Released
Income expert Carla Pasternak's debut issue of High-Yield International covers a Taiwanese manufacturer yielding 9.5%... a rare Mexican monopoly yielding 13.4%... and other top-performing investments yielding up to 19.0%.
 

Government's Biofuel Timetable Could Spell +15,900% Growth
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The Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income investors. This massive spending, combined with movement out of U.S. Treasuries, is going to take its toll on the dollar, and international income investors could reap the rewards in the form of higher dividends.



Bank of America (BAC) -- A Solid Choice for Income-Oriented Investors

By Carla Pasternak
Editor, High-Yield Investing
Visit this link to learn more about Carla's premium newsletter.
View our subscription options for High-Yield Investing here.

Published:  July 16, 2005

America's #1 commercial bank -- Bank of America (BAC, $45.98) -- recently announced plans to buy credit card issuer MBNA for $35 billion in cash and stock. The deal would double the bank's lucrative credit card business, giving it a total of $143 billion in outstanding card balances. Although the shrinking spread between long-term lending rates and short-term borrowing rates is squeezing profits at its traditional banking unit, the exorbitant credit-card interest rates should help boost the firm's bottom line.

There are some skeptics, though. Management has said the deal will make Bank of America the fourth most profitable company in the world, but Wall Street is not so sure. Some analysts are questioning the wisdom of paying a premium price for a mature business that may not have much more room to grow. Also, if rising interest rates over-tax consumers who are already deep in debt, then the bank could be left holding the bag.

Register for Carla Pasternak's High-Yield Investing newsletter today and you'll receive as many as SIX in-depth research reports absolutely FREE! 

  

Still, BAC does have an excellent track record of swiftly integrating acquisitions and maximizing their profit potential. Last year's $48 billion purchase of FleetBoston contributed to a sharp jump in this year's first-quarter profits and an +11% increase in the firm's quarterly dividend.

Action to Take: While the jury is still out on the impact of this deal, investors can pick up the stock on the cheap and lock in the dividend yield at an historic high of nearly 4%. Considering the bank has boosted its dividend every year for the past 27 years, with a five-year compounded annual dividend growth rate of +13%, shareholders should enjoy a growing income stream for many years to come. The bottom line is that I believe Bank of America will continue to deliver healthy total returns over the long haul.

 
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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