|
Forget
Treasuries -- Buy These
12% Yields Instead
I've found more than 130 "other" companies
paying 12%-plus yields... and thousands more paying above 6%. But most U.S. investors have no idea that
these securities even exist.
Meanwhile, many of the world's wealthiest investors -- including Warren Buffett -- have been quietly cashing in on them for
decades. Here's how you can join them... |
Interest rates are near zero. Savings
accounts pay next to nothing. 10-Year Treasury yields are at record lows.
And the average yield for all stocks in the S&P 500 is just
2%.
Now, I'm not trying to ruin your day by bringing this up. In fact, you can
still find plenty of great yields here in the United States. I'll even show
you a list of 22 of the United States' highest-yielding stocks later in today's
presentation.
But for years I've been watching what amounts to a silent revolution in
income investing.
Take a look at some of what I've
uncovered...
|
There is a Norwegian offshore drilling company with a global fleet of
rigs that can drill just about anywhere in the world.
Based on
its last four dividends, the shares pay $3.28 each,
giving the stock a yield of 8.0% at recent prices. Since 2006, the
shares have soared from less than $10 to over $40.
Warren Buffett bought his first stake in one of my
favorite
international high yielders back in 2006. Today he owns 4 million
shares that pay 4.2% annually.
The annual dividend of
$1.76 per share nets Buffett's Berkshire Hathaway (NYSE: BRK-B) more than $7.1
million per year... and the shares trade right here on the New
York Stock Exchange.
One fund I found, focused solely on a single country,
pays more than
10% annually. The boom for commodities -- namely copper --
has been a gift to the country, helping this fund pay massive dividends
to its shareholders. |
Most U.S. investors don't even know
that these high-yield stocks exist. But I'm
convinced once this story gets out, just about EVERY serious income
investor will want to start taking advantage of these yields.
In fact, thousands of investors just like you already are...
For instance, Jerry L. from Toronto told us one of the best investments he ever
made was putting $7,000 into one of these investments -- Canada's
largest real estate investment trust.
Today shares of the trust yield
5.5%, and Jerry told us at last count his stake is worth more than $45,000...
even after he sold a third of his holdings back in 2006.
And Alice M. from Alliance, Ohio told us she bought a foreign energy stock
that's paid her a great dividend for seven years, "on the order of 7%"
each year."
I want to show you exactly how to follow in their footsteps. For now, just
know that their success stems from investing in high yields that the
majority of investors simply don't know about... yet.
Actually, when I decided to put together this report, the first thing I did was run
the numbers to see just how large an opportunity we're talking about.
Remember, as I just told you, the average U.S. stock pays just
2%.
Yes, you can still find a few select high yields, but in general, it's a
cash-flow desert here in America for anyone who needs to bank a comfortable
income off their portfolio.
While you can find the occasional
high-yielding stock, odds are that anything paying above say, 12%, is a
basket case.
When I weeded out the companies that don't even turn a profit, I found
only 22 U.S. securities that pay yields of more than 12%.
You can see all 22 of them for yourself:
|
|
Ticker
|
Company Name
|
Yield
|
|
1.
|
WHZ
|
Whiting USA Trust
|
18.6%
|
|
2.
|
BGCP
|
BGC Partners
|
17.0%
|
|
3.
|
ARR
|
ARMOUR Residential
|
16.6%
|
|
4.
|
CIM
|
Chimera Investment
|
15.4%
|
|
5.
|
MTGE
|
American Capital
|
15.0%
|
|
6.
|
AMTG
|
Apollo Residential
|
15.0%
|
|
7.
|
AGNC
|
American Capital
|
14.7%
|
|
8.
|
CYS
|
CYS Investments
|
14.3%
|
|
9.
|
TWO
|
Two Harbors
|
14.2%
|
|
10.
|
RSO
|
Resource Capital
|
14.0%
|
|
11.
|
RNF
|
Rentech Nitrogen
|
13.5%
|
|
12.
|
BOE
|
Blackrock Global Opportunities
|
13.3%
|
|
13.
|
CWH
|
CommonWealth REIT
|
13.2%
|
|
14.
|
IVR
|
Invesco Mortgage Capital
|
13.2%
|
|
15.
|
MCGC
|
MCG Capital
|
13.1%
|
|
16.
|
NLY
|
Annaly Capital
|
12.8%
|
|
17.
|
RNO
|
Rhino Resource
|
12.7%
|
|
18.
|
VOC
|
VOC Energy
|
12.6%
|
|
19.
|
HTS
|
Hatteras Financial
|
12.6%
|
|
20.
|
IGD
|
ING Global Equity Dividend
|
12.3%
|
|
21.
|
RNDY
|
Roundy's
|
11.8%
|
|
22.
|
EFC
|
Ellington Financial
|
11.1%
|
|
*As of Aug 16, 2012
|
Just 22 survivors. But guess what?
There are actually dozens of 12% yields out there... but few
investors know where to find them.
That's because the vast majority of the world's highest yields aren't
being paid out by U.S. companies...
Expand your horizon a bit, and it's a completely different story.
That's what the investors I just told you about have figured out.
Right now, 133 additional companies are yielding more than 12%
-- they just aren't based in the U.S.
22 here versus 133 abroad -- where do you think the best hunting
ground is for investors who are truly serious about high yields?
Fact is, any income investor who doesn't look overseas is essentially
giving up on 86% of the world's highest yields before they even start.
Now, I've researched this topic for over a decade, and I've shared this
exact same story with literally thousands of investors over the past few years.
So I know from experience that many people think it's too
good to be true.
That's why in today's presentation I'm not going to just tell you about the
high yields available around the world.
I want to show you why international stocks yield so much more...
how you can buy these stocks without leaving the U.S. markets... and even
provide several examples -- including names and ticker symbols -- you can
use to start your own international high-yield portfolio.
But before I get too far ahead, let me introduce myself.
My name is Paul Tracy. I'm the co-founder of StreetAuthority, one of the
nation's fastest-growing financial research firms.
My
business partner and I started StreetAuthority a decade
ago. We literally started the business from our kitchen tables. It's funny
to think about now, but I can tell you back then we tried to keep our humble
start a secret.
But then a funny thing happened...
People began to see StreetAuthority knew what we were talking about. We were
making investors money.
Gradually more investors learned about us. Then our analysis started to
appear on AOL, TheStreet.com, Nasdaq.com, and Yahoo Finance. That brought
more readers.
Over the years, our business has grown like a weed. We now have two offices
-- one in Gaithersburg, Maryland and another in Austin, Texas. We
employ dozens of people, and we have analysts and researchers all over
the U.S. and Canada.
Today, we publish our research to over 2 million readers a month in 175
different countries across the globe.
We've made a name for ourselves, especially when it comes to income
investing.
StreetAuthority publishes the most widely read dividend-focused newsletter
in the country, High-Yield Investing. With about 35,000
paid subscribers, more investors rely on us to lead them to safe high yields than
any other service.
And a few years ago, we started noticing that more and more of the highest
yields we were finding were coming from foreign countries.
Back then we featured a closed-end Asian fund yielding 19.6% . . . a Spanish
phone company yielding 11.2% . . . a South American country fund yielding
25.3% . . . a regional European fund paying 13.8% . . .an emerging market
stock fund yielding 20.8% . . . an Australian real-estate firm paying
14.1% . . . and a Bermuda-based shipping firm yielding 17.4%.
Let me tell you, I'd prefer to pocket huge yields from IBM (NYSE: IBM) and
other home-grown blue chips. But these days, it just isn't happening. IBM
pays a miserably low dividend yield of less than 2%. And the same goes for
other major U.S. companies.
The bottom line is that if you want high yields, then you have to look at
international companies.
So rather than fight this trend, we started to embrace it...
A few years back I started to research just exactly what was out
there when it came to international high yields.
I was simply blown away by the
findings.
133 Stocks Paying 12%... And Average
Yields
That Are DOUBLE the U.S.
I already told you about the staggering number of 12% yielders abroad, but
that's just the tip of the iceberg...
You see, it's not just a bunch of 12%-plus yields that make the
international markets so interesting. Foreign companies are simply paying higher yields
across the board.
Take a look at my table and you can see the difference between what we get
from U.S. companies and what's available from international companies. Keep in mind that I only
looked at companies that were profitable over the past year.
|
Number of Income Stocks: U.S. vs. World
|
|
Yield
|
U.S.
|
Rest of World
|
|
|
> 6%
|
313
|
1227
|
|
|
> 10%
|
66
|
239
|
|
|
> 12%
|
22
|
133
|
|
|
*As of Aug 16, 2012. Source: Bloomberg
|
|
66 profitable U.S. companies yield over 10%, compared to
239 international
companies.
313 U.S. companies yield over 6% compared to 1,227 abroad.
I imagine you're starting to see why I think in just a few years nearly every serious
income investor will include international stocks in their portfolio.
But you don't have to just take my word for it...
In June 2011, Money Magazine confirmed what I've been trying to tell
investors for years:
|
"Your quest for
dividend payers can no longer stop at our shores. These days,
some of the heftiest payouts and fastest dividend growth are
being delivered by companies abroad."
- Money Magazine, June 8, 2011 |
The simple fact is that when you start looking
abroad, high yielders are practically a dime a dozen.
I've told you a couple of times now that the S&P 500 pays an average yield
of 2%. That makes us one of the lowest-yielding markets in the world.
But compare that to what I'm seeing in international markets.
Germany's average yield is 3.8%... the U.K.'s average yield is 4.0%... Brazil's
average yield is 4.3%... New Zealand pays 4.6%... Australia yields 5%...
Take
a look:
And remember, these figures are just the averages, weighed down by large numbers of
stocks that don't yield a cent.
As Judy Sarayan, a fund manager at mega-investment firm Eaton Vance
explained, "There's a much stronger dividend culture abroad... Individual investors play a larger role in those markets, and they
have always demanded more dividends."
That difference is pretty dramatic when you start looking at some individual
examples of higher yields abroad.
Take banks, for instance. Here at home, Bank of America (NYSE: BAC) used to
pay investors $2.56 per share before the financial crisis. That represented a yield
of more than 6%.
Of course, we all know what happened next. Today, BAC pays a laughable $0.01
(yes, one penny) each quarter.
But it's a completely different story outside the United States.
Santiago, Chile-based Corpbanca SA (NYSE: BCA) is a perfect example.
Chile's largest bank, Corpbanca offers commercial and retail banking through
more than 100 offices. The bank also offers mutual fund management,
insurance, and securities brokerages through a network of subsidiaries. Not only have the shares soared
over the past five years, but dividends now total $1.54 per share each year. That gives the stock a
yield of over 8% at recent prices.
It's the same thing for utilities. They are one
of the best places to search for yields in the U.S. North Carolina's Duke
Energy (NYSE: DUK) pays a yield of about 4.5%. But that is topped by
international utility stocks like Brazil's
AES Tiete (OTC:
AESAY).
AES Tiete is one of Brazil's largest
independent power producers engaged in the generation and sale of electric
power through hydroelectric plants.
Its shares pay investors $1.2 a year, for a yield of
10%. Compare that to
the Dow Jones Utility Average, an index that tracks 15 U.S. utility stocks,
which yields just 4%.
Yes, a portion of foreign dividends are sometimes withheld for taxes... but
higher yields can often make up the difference -- and then some.
Still, most U.S. investors are unaware of what
they're missing. Put simply, if you want to earn the most income
possible, then you have to start considering international income stocks.
And the best news? Big dividends aren't the only benefit...
Your Choice: Middling
Returns -- Or Go
Where the Growth Is
The higher yields you can find from international
companies are compelling, but if that's all you're focused on, you're
missing what may be an even better reason to invest abroad.
International markets are where the growth is.
The United States is unlike any other nation on the planet. It's the largest
economy. It's home to the world's most innovative entrepreneurs. But the
simple fact is that the headiest days of our economic growth are behind us.
It's simply the law of large numbers.
With an economy in excess of $15 trillion, growing more than a few percent
each year is a major undertaking.
In fact, think back about what we've seen over the past few years. The U.S.
government has spent trillions in an effort to stimulate the economy. The
Federal Reserve has spent trillions more. Interest rates have been
slashed to zero.
And yet, the U.S. economy grew a meager
1.7% in 2011. Not bad, but
nowhere near the top of the list when it comes to GDP growth.
Qatar topped this list with 18.8% growth. Panama saw a 10.6% rise in GDP...
South Korea, 3.6%... Poland, 4.3%... even Chile boosted its GDP at a
6% annual rate.
But to me, GDP numbers alone don't tell the entire story. I
much prefer to know what companies and their CEOs are actually seeing. To investors
like you and me, that's the real story.
For example, Walmart (NYSE: WMT) has seen its
U.S. sales grow 19% during the past five years. Not bad... but nowhere near
the 63% growth in international sales during the same time period.
It's
the same story with McDonald's (NYSE: MCD). Revenue in the United
States is up 14% since 2006. But the company's sales in Asia,
Africa, and the Middle East are up a staggering 97%.
Even IBM (NYSE: IBM) is seeing the same
sort of trend. Its revenue in the Americas is up a respectable 14%
in the past five years. But revenue from Asia is up 44%.
Just imagine what companies focused solely on international markets
are doing...
Take AmBev (NYSE: ABV) for instance. This company's business couldn't
be simpler -- it distributes beer and soda in Brazil and throughout
South America. It's actually the fourth-largest beer producer
in the world.
Over the past five years, sales have doubled and
profits have tripled. That's led to a surge in the share
price. In just five years AmBev's shares have gained more than 27%. And
with dividends included, your total return is more than 34%.
Compare that to the S&P 500's gain of just 4.5% (dividends included) during that same
period..
Meanwhile, some of America's greatest CEOs are simply glowing about
expanding into faster-growing international markets..
Take what Howard Shultz, CEO of Starbucks (Nasdaq: SBUX), had to say about
his company's growth
prospects in China....
|
"I think perhaps the most encouraging aspect of our Chinese business to date
is the response that we're getting in secondary and tertiary markets in
cities that most Americans have never heard of with populations ranging from
1 million to 6 million or 7 million people.
So when we look at the number of cities in China that are going to have 1
million people or more and the government officials are telling us it's
going to be over 100 cities, the opportunity I think we have is very
significant." |
And then there's Warren Buffett,
the world's most famous investor, giving his thoughts on India...
|
"The market is growing, getting more prosperous by the day, where businesses
are flourishing. This is a dream market in a sense. The number of people,
the buying power that they are gaining, the ability to produce things,
everything is getting better every day." |
That's not mincing words.
But what does this rosy outlook from some of America's greatest
CEO's actually mean for individual investors?
It means U.S. investors have a great opportunity to capture big gains by
investing in foreign stocks.
You can see for yourself...
Pauli B. from Hollywood, Florida
bought 500 shares of Sociedad Quimica y Minera (NYSE: SQM), a Chilean
fertilizer and chemical company, back in 2005. He told us his
investment rose from $5,700 to $27,000... and he collected over
$1,800 in dividends.
And Jerry S. from Bend, Oregon has a similar story. He told us he bought
25,000 shares of Silver Wheaton (NYSE: SLW), a Canadian silver royalty
trust, at just $3.00 per share. Today, those shares trade for roughly $35
each.
As Jerry told us, "It was a good thing to purchase."
You see, there's a correlation between economic growth and rising stock
prices. The faster the growth, typically the higher the stock market moves.
So it shouldn't surprise you that
in 2011, the S&P 500 returned
about 2% (that's with dividends included!). When you look at the total
performance worldwide, the U.S. market ranked just 13th in the world over that
period. In other words, there were a dozen other places to make more money.
But that's just one year. The difference is more pronounced over the long
term.
During the past five years ended 2011, the S&P 500 has returned -1.2%. But
44
other countries delivered better stock market returns. According to
Bloomberg, countries like Chile,
Germany, and even Mexico have handily outperformed the U.S. market.
The opportunities abroad have become so profound that even New York City is
looking to invest more overseas to grow its city pension...
|
"Calling the
rising cost of city pensions "unsustainable," Deputy Mayor
Robert K. Steel said Thursday that New York City should move
swiftly to overhaul its benefit system, including by investing
more funds in overseas markets.
Mr. Steel, who oversees economic development for Mayor Michael
R. Bloomberg, said moving retiree investments out of American
stock markets and into international equities could bring higher
returns, helping alleviate some pressure on the city's budget."
-- The New York Times (Blog), July 14, 2011 |
So with all that in mind, how can you start
boosting both your growth AND your dividend income by
investing in international companies?
I'll show you how. And I'll even show you how to lock in international high
yields without leaving the U.S. markets. Simply keep
reading...
My Little "Trick" to
Capturing
the World's Highest Yields
Before I go any further, I want to clear up one common
misconception.
Buying high-yield international stocks isn't difficult. You don't
have to change currencies... you don't have to open a new brokerage account.
Heck, you don't have to even leave the New York Stock Exchange.
In fact, thousands of these companies currently trade right here in the United
States.
Let me give you an example...
I'm a big fan of Ship Finance International (NYSE: SFL). This
Bermuda-based company leases more than 60 cargo ships and drilling rigs to
users all over the world. Included in its fleet are nearly 30 crude-oil
tankers.
To me, Ship Finance is a no-brainer. The world is increasingly hungry for
more resources -- oil, grain, iron ore, and countless other commodities and
goods. And the primary way of moving those goods is over the open ocean.
That means the company should always see demand for its ships for years to
come. At the same time, it's not easy for another competitor to come in and
take away business. After all, it takes millions of dollars and years of
labor to build a new ship.
Best of all, SFL is paid handsomely for leasing its ships and rigs (up to
$75,000 per day in some cases)... and it passes the majority of that money
to its investors. Right now the company pays a dividend of $1.47 a share
each year. That gives the stock a yield of nearly 10%.
Buying shares of Ship Finance is a piece of cake... it trades as an American
Depositary Receipt (ADR) on the New York Stock Exchange. That means the
shares trade right here in the U.S. just like any other stock. You can
buy them just as easily as you would a share of Walmart (NYSE: WMT) or
General Electric (NYSE: GE).
According to Bloomberg, 1,726 international stocks currently trade in
the United States. That includes some of the world's largest
companies -- like PetroChina (NYSE: PTR) and Vodafone (NYSE: VOD).
Now, not all of those are high yielders. But in that list are hundreds for
investors to choose from. Names like
France Telecom (NYSE:
FTE), which pays more than 15%... and
Brazilian power producer
AES Tiete (OTC: AESAY), which also pays a
double digit yield.
But what about all those high yielders you can't buy here in the United
States? Are they simply untouchable?
Think again.
The rise of international markets hasn't been lost on investors -- more
importantly, it hasn't been lost on the companies that create investment
funds.
Over the past few years dozens of funds that focus on international
dividend payers have come to market.
These funds scour the globe in search of the highest yields. They then combine them all into a nice neat package for
U.S. investors to
buy.
Let me give you an example.
Most investors have never heard of the AllianceBernstein Global High
Income Fund (NYSE: AWF).

This fund is exactly the sort of find I'm talking about... it invests in
hundreds of bonds around the world. Many of these securities are difficult
-- if not impossible -- for average investors to buy. But AWF gives you an
opportunity to buy a basket of them without leaving the United States.
The fund owns government bonds from Brazil that pay 12.5% annually. It owns
bonds from Russia's Gazprom -- the world's largest natural gas explorer -- that pay
9.25%. But not all of its holdings are from abroad. It also balances out that
exposure with bonds from American companies -- like Caesars Entertainment
notes paying 11.25%.
But focusing heavily on overseas bonds -- where yields are higher -- allows
AWF to throw off a spectacular stream of income. This diversified fund pays $0.10 per share
every month, giving it a yield of roughly 7.5% at recent prices.
I think by now you're starting to see the appeal of
international income stocks.
But what about the safety of international investments? With all the turmoil
we're seeing around the world, isn't it risky to invest abroad?
The 18 Countries As Safe --
OR SAFER -- Investments
Than the United States
I've talked to plenty of investors over the past
several years. And I've noticed that when you bring up investing in
international companies, there are tons of misconceptions.
First and foremost -- many investors see other countries as somehow being
"riskier" than the United States.
For me, it's the exact opposite... I see them as safe havens.
I don't know about you, but I have a lot tied to the economic well-being of
the United States. My business is based here. I own property here. And you better
believe I own stocks in this country.
When you think in those terms, it's easy to see just how closely your future
is tied the future of the U.S.
But there are some grim realities we need to face.
America's total debt load already tops $15 trillion --and it's projected to
reach over $22
trillion by 2020.
The current debt is more than $139,000 for every taxpayer in the United States.
Like a taxi meter spinning faster and faster, we are slipping $4.2 billion
deeper into the hole every day -- at a rate of $175 million per hour.
Our credit rating was even knocked down from its golden "AAA" status by
Standard & Poor's.
At this point, if you aren't diversifying your investments
outside the United States, then I think you're taking far too much risk.
Don't get me wrong -- despite the issues we face in the U.S., I'd still take
it over any other nation on the planet. I love this country. But that doesn't mean I want every
dollar I invest to stay here at home.
And the truth is, if you focus only on U.S. companies, then you're missing
out on thousands of great international businesses.
For example, of the ten largest companies by revenue on the planet, only
three are in the United States.
U.S.-based Walmart (NYSE: WMT) makes the list of the world's largest
public companies by revenue... but foreign companies like Royal Dutch Shell, Total
S.A., and Japan Post Holdings round out the top 10.
And only four of the world's ten largest pharmaceutical companies are based
in the U.S. Most of the largest companies -- like Roche, Novartis, and Bayer
-- are all based internationally.
On top of that, countries like Australia are seeing unemployment rates of
just 5.2%... Brazil is at 5.8%... Germany 6.8%... South Korea's unemployment rate
is just 3.2%.
|
18 Countries Have Credit Ratings as High (or Higher) than the United
States
|
|
1.
|
Australia
|
|
2.
|
Austria
|
|
3.
|
Canada
|
|
4.
|
Denmark
|
|
5.
|
Finland
|
|
6.
|
France
|
|
7.
|
Germany
|
|
8.
|
Guernsey
|
|
9.
|
Hong Kong
|
|
10.
|
Isle of Man
|
|
11.
|
Liechtenstein
|
|
12.
|
Luxembourg
|
|
13.
|
Netherlands
|
|
14.
|
Norway
|
|
15.
|
Singapore
|
|
16.
|
Sweden
|
|
17.
|
Switzerland
|
|
18.
|
United Kingdom
|
|
*As rated by S&P. The United States is rated "AA+."
|
No, not every country is a safe haven. Put your money in a risky play like
Greece... or Italy... or any number of countries with major debt problems, and
don't be surprised if even the safe dividend payers let you down.
But it's not the same everywhere...
Currently, a total of 18 countries and territories have credit
ratings as high -- or higher -- than the "AA+"
rating of the United States.
This list of safe havens includes nations like Australia, Norway, Singapore, and
Switzerland.
And it's easy to see why. According to the CIA World Factbook, Switzerland's
public debt-to-GDP ratio is just 52%. Norway's is 45%. And Australia's is
30%. That's not to say none of the countries have
large debts, but for the most part, they are in better shape than the United
States.
According to Reuters, Norway is even projected to run a $59 billion
budget surplus this year!
When you realize that, why would you beat yourself up fighting the
frustrating economic climate here at home?
And the best news is that there is an added bonus to investing in economies
stronger than our own. As I'll show you, that bonus can mean a double-digit
boost to your income...
How to Boost Your Income
Stream by 10%-Plus...
in a Single Year
I've talked a lot about the advantages
of adding international high-yield stocks to your portfolio.
But what I haven't mentioned may be one of the best reasons to invest
abroad...
You've no doubt seen the headlines. The almighty dollar is weakening. It has
been for years.
But guess what? That's a positive -- IF you're investing in international
dividend payers. In fact, in some cases you could have seen a 10% boost in
your income, even without a dividend increase.
In simple terms, here's how it works...
Say five years ago you took the trip of a lifetime to Australia. Back then,
$1.00 U.S. bought you roughly $1.24 Australian. That means a hotel room priced at $100
Australian dollars only cost about $80 U.S. dollars thanks to a favorable
exchange rate.
But today, the U.S. dollar has plummeted. It now trades for less than the Aussie
dollar. That $100 room in Aussie dollars will now cost you $106 U.S. dollars -- a
33%
increase, even though the hotel's rate didn't change.
What does this have to do with dividends? Well, what's bad news for your
vacation is great news for your international income investments.
Say you bought an Australian company five years ago that paid a dividend of
$10
Australian dollars each year. Back then, you would have earned $8 in
U.S. dollars after conversion.
|
Currency Gains Against U.S. Dollar (5 Year)
|
|
Currency
|
Gain
|
|
Australian Dollar
|
30.1%
|
|
Japanese Yen
|
29.7%
|
|
Swiss Franc
|
23.4%
|
|
Singapore Dollar
|
23.1%
|
|
New Zealand Dollar
|
15.7%
|
|
*As of Aug 16, 2012
|
But today, that same
$10 Aussie dollar dividend would be worth $10.60 in the
U.S. -- or 33% more.
The bottom line is if the U.S. dollar continues to weaken versus other major
foreign currencies, then your dividends will increase over
time... even if the company you invest in keeps its dividend payment the same.
The best news is that I see this trend continuing for at least the next two
or three years.
And I'm not the only one who thinks this:
Recognizing this trend years ago -- and investing
alongside it -- has already given international income investors a major
boost.
Now keep in mind, if the dollar were to rally, the opposite would happen.
But for a variety of reasons I won't bore you with today, I think the U.S.
dollar will continue to lose value in the coming years.
Not Replacing Income
Investing at Home... Just Adding Hundreds More High-Yield Opportunities
I want to make something clear -- I don't think you
should drop everything and put every dollar you have into international high
yielders. Truth is, the size and scope of the U.S. market makes it a great
place to search for income investments.
But limiting yourself to only the U.S. is
like going to a restaurant and limiting your options to just one side of the
menu. Sure you can find something you like... but wouldn't you rather see all
the options?
As you've seen, there are higher yields abroad... and higher growth... and safer
investments. I think the choice is simple.
That's why a few years ago,
StreetAuthority launched our most exclusive income-investing newsletter -- High-Yield International.
This advisory's focus is simple -- find the highest yielding and most
lucrative securities available from international companies, without leaving the
U.S. markets. That way, every reader can follow our lead.
High-Yield
International is led by Chief Strategist Elliott Gue.
If the name or face is familiar, there's good reason. Elliott has appeared
on CNBC and Bloomberg TV, and has been quoted in a number of major
publications, including Barron's, Forbes, the Washington
Post, and the G-8 Summit's magazine.
Elliott's expertise and track record of success have also made him a
sought-after speaker at investing conferences and events hosted by the
American Association of Individual Investors (AAII) and others.
In the early 2000s, Elliott was associate editor of an international
investing-focused newsletter called Market Meridians. In recent years
Elliott has made international and high-yield investing one of his core
themes. Elliott co-authored a book in 2006 titled The Silk Road to
Riches: Investing in Asia's Newfound Prosperity, which focused on the
growth in emerging markets.
Put simply, there are less than a
handful of analysts in the United States to whom I would entrust
High-Yield International. At the top of that short list is Elliott, who
is also a personal friend and professional colleague I've known for more
than a decade.
And so far, the readers following High-Yield International seem to
have enjoyed it...
"High-Yield International is zinging right along. I thought your
discussion of foreign preferreds was 'Investment Letter Pulitzer' quality.
Article was thorough and informative.
-- Jim P., Forest Grove, Oregon
It is a wonderful tool. Your investigating makes mine much easier.
-- Bob W., Boca Raton, Florida
High-Yield International gives me some diversification from domestic
U.S. high-yield paying investments and diversification is what makes
success.
-- Abe W., Cincinnati, Ohio
I like the fact that [High-Yield International] is dividend
oriented, and locates opportunities outside the U.S. Your choices coincide
with mine. I research them after you recommend them and like what I find.
-- Bill S., Houston, Texas
And frankly, these subscribers
should be happy.
A staggering 93% of High-Yield
International's portfolio holdings were in positive territory as of
mid-December. Even better, the average return of all portfolio holdings is
76.6% since they were added.
Despite these returns, this advisory isn't for everyone. It's a focused and comprehensive
service for committed income investors. Join us and you will be part of an
elite investment alliance -- not a mass-circulation service.
Instead of trying to get a zillion subscribers, we want to make sure our
service does what it's supposed to for you: take the guesswork out of
choosing high-yields from around the world without any hidden liabilities
that could trip up a safety-first investor. (Keep in mind, however, there is
always risk in investing.)
Now, there's no guarantee this advisory is right for you.
So here's what I'd like to do.
Try High-Yield International for the next 60 days, read the
advisory, see my full portfolio of holdings, even look though our full
archives of past issues... and then decide if my research is what you're
looking for.
Start your 60 days now, and you'll receive:
12 Issues of High-Yield International -- Each issue includes full
analysis of Elliott's favorite income plays... plus his "High-Yield
International Stock of the Month" -- the one foreign high-yield security
he likes most.
Report #1: The Most Undervalued 12% Yield on the Planet -- If your
idea of investing heaven is a double-digit yield, then you'll love this
report. We've found a security paying 12% that could also throw off enormous
capital gains once investors recognize its true value.
Report #2: The Safest International Dividend-Payer on Earth -- You'll have full access to the name and profile
of the single stock we've designated as the world's safest income stock.
Although there are no guarantees in investing, this stock is perhaps the
most stable dividend payer out of the hundreds of companies we analyzed.
Instant Access to my High-Yield International Portfolios -- To
track our results, we add our favorite securities to one of our two model portfolios
-- the "Ultra High-Yield" Portfolio and the "Reliable Income"
Portfolio.
As of December 12th, our average current holding was up 76.6% and 39 out of
42
positions were in positive territory.
For the next 60 days, you can take the time you need to decide if
High-Yield International is what you're looking for. If not, simply
contact our customer service team for a full refund -- less a 10% processing
charge.
I'll tell you how to get started and gain immediate access to
High-Yield International -- including Elliott's full portfolio of
high-yield holdings -- in a moment. But first I want to tell you about one
more piece of research we've been working on...
The 3 Best International
High-Yield
Stocks to Hold Forever
As I mentioned earlier, I co-founded StreetAuthority
a decade ago.
I got into this business because I have a passion for the markets. I bought
my first stock when I was still in high school -- while most of my buddies
were sneaking beers.
Over the years, I've bought and sold literally millions of dollars worth of
stocks. And today, I pay salaries of several million dollars per year to
employ some of the smartest investment minds in the country. But before
that, I made every investment decision in the company myself.
In other words, I know what makes a good investment... and what makes a bad
investment.
But over the past few years -- especially during the teeth of the recession
-- I noticed something disturbing.
Thousands... even millions of investors starting dumping what I knew were
good investments that should be held for the long term.
I backed up the truck on these stocks. Take a look at a few of my
personal buys during the bottom of the last bear market...

As the co-founder of an investment research firm, it
bothered me investors were dumping what I saw as unbelievable opportunities.
And even worse, investors were selling some of the most dominant companies
on the planet -- the exact type of stocks I like to buy and hold forever.
Ever since, I've been throwing around this idea in my head of creating a
list of stocks that investors could hold forever. They could simply buy the
shares and forget about them.
They wouldn't have to worry about what the market is doing... or interest
rates... or GDP... or inflation.
Basically, I wanted to show investors that investing doesn't have to be
complicated. And you don't have to watch the stock market every day to make
money.
All you have to do is find a handful of companies that enjoy huge (and
lasting) advantages over the competition... companies that pay their
investors each and every year by dishing out fat dividends... and companies
that are buying back massive amounts of their own stock.
These are the kinds of companies that can make you money no matter what.
Once you find them, the rest is simple -- just buy their shares and hold
forever.
So a while back, I did just that. I put together a report that focused on my
favorite stocks to hold forever. And sure enough, that report turned into one of the most popular advisories StreetAuthority has
published... ever.
That made it a no-brainer to decide what we needed to provide readers of
High-Yield International.
So we went on the hunt for the same sort of stocks -- only this time, with a
focus exclusively on international income stocks.
We just put my findings into a special research report, titled The 3 Best
International Income Stocks to Hold Forever.
In this report, we detail the three high-yield stocks from abroad that
Elliott and I
think you should buy, forget about, and hold forever. It even includes one
idea that has soared more than 700% since it first went public back in 2004.
I've decided to include this report at no extra charge with your
subscription to our monthly High-Yield International advisory.
Keep reading to see how to sign up and receive this report... plus lock in a
major discount...
A Discount of 50% Off the
Masthead Price
The masthead price for High-Yield
International is $794 per year. That's because we put an enormous of
time, money, and effort into our research. It's not always easy to
research some of the international high-yield plays we find. We have to
recoup our costs.
But sign up through this offer and
you can start your 60-day test of High-Yield International for 50% off
the masthead rate.
You'll pay just $397 for one year of my monthly advisory. This includes...
12 Issues of High-Yield International -- Each issue includes full
analysis of Elliott's favorite income plays... plus his "High-Yield International
Stock of the Month" -- the one high-yield security he likes most.
Report #1: The Most Undervalued 12% Yield on the Planet -- If your
idea of investing heaven is a double-digit yield, then you'll love this
report. We've found a security paying 12% that could also throw off enormous
capital gains once investors recognize its true value.
Report #2: The Safest International Dividend-Payer on Earth --
You'll have full access to the name and profile of the single stock we've
designated as the world's safest income stock. Although there are no
guarantees in investing, this stock is perhaps the most stable dividend
payer out of the hundreds of companies we analyzed.
Report #3: The 3 Best International Income Stocks to Hold Forever -- The
plan is simple. Buy these high-yield stocks, forget about them, and hold them forever. You'll receive full profiles of the top
3
stocks we've tagged with my exclusive "forever" designation.
Instant Access to my High-Yield International Portfolios -- To
track our results, we add my favorite securities to one of my two model portfolios
-- the "Ultra High-Yield" Portfolio and the "Reliable Income"
Portfolio.
As of December 12th, our average current holding was up 76.6% and 39 out of
42
positions were in positive territory.
But remember, you'll have the next 60 days to decide if you like our research
or not.
If you don't like it, we won't get my feelings hurt. Simply call our
dedicated customer service team before your 60 days is up and we'll send you a
full refund, minus a 10% processing fee. You'll be able to keep the reports,
free of charge.
To get instant access,
subscribe now.
All the best,

Paul Tracy
Co-Founder, StreetAuthority


Disclosure: Paul Tracy owns shares of MA and AWF. FLY and AWF are High-Yield International model portfolio
holdings. StreetAuthority owns shares IBM, SLW, and AWF as part
of the company's "real money" portfolios. In accordance
with company policies, StreetAuthority always provides
subscribers with at least 48 hours advance notice before buying
or selling any securities in any "real money" model portfolio.
Members of our staff are restricted from buying or selling any
securities for two weeks after being featured in our advisories
or on our website, as monitored by our compliance officer.
(C) Copyright 2012 StreetAuthority, LLC. LEGAL DISCLAIMER:
Please note that we are not a registered investment firm or
broker/dealer. Readers are advised that the material contained
herein should be used solely for informational purposes.
We urge you to always conduct your own research and due
diligence and obtain professional advice before making any
investment decision. StreetAuthority will not be liable for any
loss or damage caused by a reader's reliance on information
obtained on our web site. Our readers are solely responsible for
their own investment decisions.
Figures shown in the preceding webcast represent returns for individual stocks
only. All investments can be volatile, and all returns will be
reduced by fees and expenses. Below are the returns for
StreetAuthority's High-Yield International newsletters.
Newsletters
(Model Portfolios) |
Average Returns of
Current Portfolio Holdings* |
Current Holdings Showing
Gains |
Current Holdings Showing
Losses |
|
High-Yield International |
+77% |
39 |
3 |
|
* as of
December 12, 2012 |
|