October 2009

Income Security of the Month

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Key Statistics:

Security Type: Exchange-Traded Bond
Dividend Yield:  13.1% 
Annual Dividend $1.875
Dividend Frequency: Quarterly

If you're looking for high yields and strong capital appreciation potential, then you need to learn more about our "Income Security of the Month" for October. Are you tired of watching your income stream dry to a trickle as stocks continue to slash their dividend payments? Then you'll love this investment-grade, exchange-traded bond. It's legally obligated to pay the same quarterly dividend like clockwork.

The company behind our "Income Security of the Month" provides wireless telephone services, a sector that has proved to be resilient amid the current economic turmoil. In fact, in the fourth quarter of 2008 -- a challenging period for most businesses -- this company actually grew its customer base and service revenues. Don't wait too long to lock in this double-digit income provider -- its current discount may not last long.


Visit the link below for full details on this security . . .
Tell me the name of this security!


 What is our "Income Security of the Month" all about?
Every month Carla Pasternak and our research staff here at High-Yield Investing put the spotlight on a unique income security that offers unusually high dividends AND tremendous long-term growth potential.

We've uncovered one security that now offers a chance to lock in a 13.1% yield -- and a gain of +75% based on its current discount to its principal value.

The current flight to quality has driven investors into low yielding Treasuries and out of corporate bonds -- pushing up the yields on investment-grade bonds to near-historic highs.

But even as investors fled corporate bonds, the company behind our "Income Security of the Month" continued to grow. 
While every other business has cut spending to the bone and lowered expectations for 2009, this company announced that  not only would it grow next year, it would continue to invest in its business, allowing it to "emerge from the economic downturn stronger than ever."



How has this company been able to buck the trend in this lousy economy? Consumers cut back on a lot of  things during an economic downturn. They may pass on a costly vacation, a trip to the spa, or even their $5 latte. But you won't find too many people willing to give up their cell phones. For most people, phone service is essential, like electricity, heat, or water.

And that has been just one of the contributing factors that have caused this security to outperform the S&P 500 by +22.4 percentage points in the last three months alone.

Companies are cutting their common stock dividends left and right. Stalwarts like General Electric (NYSE: GE), CBS Corporation (NYSE: CBS), and US Bancorp (NYSE: USB) are just the latest to slash their once-rich dividends to miserly yields. Common stock dividends are paid at the whim of a company's board of directors. With credit in short supply, boards have uniformly slashed common share dividends to preserve capital.

But that can't happen to our "Income Security of the Month." As a bond, it is legally obligated to make the same mouth-watering dividend payout each and every quarter.  
 
The Perfect Time to Invest
Now is the perfect time to invest in these shares. Why? Because bond prices recover almost the minute the economy starts to stabilize. In the 2001 recession, bond prices shot up -- pushing bond yields back to their norms --  within weeks of the recession's end, while it took the broader equity markets more than a year to recover. 

Even before the economic tide has turned, people will start to leave the paltry Treasury yields behind and start ferreting out rich yielding investment-grade corporate bonds. And as soon as that happens, our near-historic yield premium will start to disappear.

And from here, we are likely to see a rise of +75% in the share price as the shares trade back at the level they had been at for years -- approaching their principal value. Investors normally enjoy a solid yield of 7.5% on this security. But now you can take advantage of the lower share price to lock in 13.1% yield. If the price rises and the yield for new investors drops, you'll have a stock with a +75% gain and you'll still be earning 13.1% on your initial investment. That's having your cake and eating it too.



Let's look at how that 13.1% yield stocks up to the competition.

By comparison, the 3.9% yield offered by the S&P 500 looks downright puny. Even the Dow Jones Dividend Index with its 8.1% yield still can't hold a candle to our "Income Security of the Month."

And Treasury bonds?  Forget it.  The 10-year Treasury note currently pays just 2.9%.

Even other corporate bonds fall short.  The average 10-year "AAA"-rated corporate bond yields around 6.3% at the moment. While it's better than nothing, it's not even in the same ballpark as our "Income Security of the Month." In fact, it would take our "Income Security of the Month" provides twice as much income as the average "AAA"-rated bond, each and every year.
 

The 13.1% dividend yield offered by our "Income Security of the Month" is even more impressive when you look at what it could mean for your portfolio. Here's a quick look at the annual cash payouts that a 13.1% dividend yield brings in for portfolios of varying sizes:
 

An Experienced Expert You Can Trust... 

Editor of our High-Yield Investing newsletter since its inception in May 2004, Carla Pasternak draws on a variety of financial backgrounds to make profitable calls on income-generating stocks for her readers.

Carla has been in the investment industry for more than two decades: nationally recognized financial writer... as president of an investor relations firm... and as a writer of shareholder reports for public companies since 1980.

In her hunt for income-paying stocks, Carla is mindful to select companies that not only pay rich dividends, but that also deliver strong long-term capital gains.

Furthermore, Carla's experience in writing SEC filings gives her an unusual insight into any company's current and future financial health.

On the educational front, Carla holds BA, MA, MBA and Ph.D. degrees. When she's not watching the market, she's teaching college business courses and managing millions of dollars in portfolio assets. 

Here's what some of our over 25,000 loyal subscribers have to say about Carla Pasternak's High-Yield Investing newsletter:

"I have made more money in retirement than I did when I was working.  Income from dividend-paying stocks, which I now collect every month, is even better than my greatest expectations.  Thanks for your help with High-Yield Investing."
-- William Briglia
Newport News, VA

"I have subscribed to dozens of financial publications over the years, but High-Yield Investing is undoubtedly the finest. Carla Pasternak's thorough presentations and diligent research are priceless. I am extremely pleased to have found High-Yield Investing at long last. Thank you, Carla."
-- Lee Roach
Las Vegas, Nevada

"High-Yield Investing is the fix I need to augment my retirement income. In the search for yield, Carla Pasternak is amazing and resourceful."
-- Dr. Stephen Silverhardt
Jenkintown, Pennsylvania

"As president of an insurance company, your newsletter has been a godsend to our investment team. I especially like the fact that you tell us in advance when issues will be ready, have strict guidelines with your selections, and tell us exactly when to buy and sell. I really enjoy your newsletter. It is my style of investing."
-- Dike Ajiri
Chicago, Illinois

"I just subscribed to your High-Yield Investing newsletter, and so far I really like it. I spend hours looking on the web for high-yield investments and your letter narrows it down nicely."
-- Roger Duncan
Colorado Springs, Colorado

"After reading a few sample issues of your High-Yield Investing newsletter, I have found the content to be extremely informative and helpful to me in my own investing -- my goal is income investing for my retirement."
-- Ronald Kenyon
Paris, France

Portfolio Size Annual Cash Dividends  Portfolio Size Annual Cash Dividends 
$50,000 $6,550 $500,000 $65,500
$100,000 $13,100 $750,000 $98,250
$250,000 $32,750 $1,000,000 $131,000

Locking in to this dividend now assures a rich payout stream for years to come. If you reinvest your dividends at the same rate, you can double the value of your investment in just over five years.


Tell me the name of this security!


A Closer Look at our "Income Security of the Month" for October 2009


What Gives This Security Its "Edge" Over the Competition?

High Yield -- This security's 13.1% legally obligated dividend yield is one of the highest available on the market. 

Solid Quarterly Dividend Payments -- Our "Income Security of the Month" has paid regular dividends like clockwork for 18 quarters, amounting to annual payments of $1.875 per share.

Recession-Resilient Business -- This company offers wireless telephone services and continues to grow its customer base, even in these economically challenging times. so that it will be ready to outpace its peers when the recession clouds lift.

Strong Appreciation Potential
-- At recent prices, our "Income Security of the Month" is trading at a discount to its principal. Since investors will ultimately reap back the principal amount on this bond, the share price will eventually -- although it may be sooner than later -- trade at that amount. When that occurs, the shares will appreciate +75%. The ability to deliver a high yield and strong appreciation potential explains why these shares have outpaced the S&P by +22.4 percentage points in just the past three months.

Exchange-Traded -- Most bonds have to be bought in the secondary market and have high transaction fees. And many bonds have a minimum initial investment requirement of $5,000 or more. But our "Income Security of the Month" is exchange-traded. It has its own ticker and trades just like any other stock on the exchange throughout the day, for the same low transaction fees enjoyed by stocks.

With all of these bullish factors in mind, income-oriented investors will want to lock in this security's abnormally high dividends today. If you're ready to learn the name of our "Income Stock of the Month" by joining the thousands of other satisfied subscribers to Carla Pasternak's High-Yield Investing newsletter, then please visit the link below.

Tell me the name of this security!


The Power of Compounded Dividends -- Using DRIPs
to Grow Your Wealth


There's no better way to grow wealthy in the equity markets than to systematically invest in high-quality securities and hold them for the long haul . . . while reinvesting your dividends.  

That's why dividend reinvestment plans, or "DRIPs," are such powerful tools for building wealth. By plowing your dividends back into more shares, DRIPs make it easy to harness the miraculous power of compounding. The beauty of compounding is that any little smidgen of money you can put to work now -- no matter how small -- can have an extraordinary effect on your wealth down the road.

For example, let's say you're able to stash away $7,500 per year. Although that might not seem like a tremendous amount of money, thanks to the magic of compounded dividends, a $7,500 annual investment can turn into over $1.3 million over time. The chart below shows what would happen if you invested $7,500 per year for 25 years in a security that pays a 13.1% annual dividend.

Assuming a $14 share price (near where this security is trading), in this example you'd start out at year #1 with an investment of just under 540 shares ($75,00 divided by $14). But by the end of this 25-year period your dollars would have compounded into a nest egg of 96,300 shares, and those shares would be worth more than $1.3 million. Even better, at year #25, those shares would be throwing off more than $175,000 in cash dividends alone!

But there is even better news for investors in our "Income Security of the Month" for May 2009. This chart assumes the security's underlying share price doesn't budge over the entire 25-year period -- that it doesn't even gain one single cent. The returns shown above display gains from dividends only. But these bonds are designed to return $25 per share of principal at maturity -- which means your shares are would be worth over $2.4 million!

The bottom line is that dividends matter big time. When you invest in companies with abnormally high dividend yields, you can make staggering profits even if their share prices never budge. Your dividend check can eventually grow so large that it surpasses the original price you paid for the stock. The exhilaration of "lapping" your original investment that way is a feeling you'll never forget.

Below you'll find even more income investing opportunities, as well as our High-Yield Investing newsletter. In the meantime, if you're ready to learn the name of our "Income Stock of the Month," plus join the thousands of satisfied subscribers to Carla Pasternak's High-Yield Investing newsletter, then please visit the link below.

Tell me the name of this security!


Just One of MANY Remarkable Income Investing Ideas


Our "Income Security of the Month" for May 2009 should deliver impressive gains and above-average income in the coming months and years. But it's not the only game in town for income-oriented investors.

In each monthly issue of High-Yield Investing Carla Pasternak reveals dozens of stocks and funds that offer above-average dividend yields and strong capital gains. She provides two model portfolios that are chock full of high-quality income investing ideas. Many of the firms she holds in these portfolios sport dividend yields of 10%, 12%, even 15% or more.

Below are a few of the high-yielding securities that Carla Pasternak currently holds in her model portfolios . . .

Business Profile Yield
Shipping stock 19.7%
Income fund 10.6%
Preferred stock  16.0%
REIT fund 9.9%
Preferred stock 11.5%
Business Profile Yield
Enhanced income security 16.9%
Preferred stock 9.7%
Diversified utility fund 6.9%
Stock/bond fund 14.0%
Master limited partnership 8.5%

In fairness to her fee-paying subscribers, we can't provide you with names and ticker symbols for these securities.  

But if you want all the details on these remarkable yields, just visit the link below. You'll get a full write-up on our "Income Stock of the Month" for May, plus the names and ticker symbols of all the high-yielding stocks and funds in the table above. You can find this information by scrolling through Carla Pasternak's various model portfolios, which you'll find in every issue of High-Yield Investing.

To gain access to all of these company names, PLUS receive SEVEN complimentary research reports, PLUS receive Carla Pasternak's monthly newsletter and mid-month updates filled with dozens of similar income investing ideas, please visit this link immediately. 

 


What is High-Yield Investing?


High-Yield Investing is a monthly newsletter focusing on the market's leading income stocks and funds. It also delves into  a host of lesser-known investment options that you maybe never knew existed!

Many of these securities provide investors with annual dividend yields of 10%, 12%, even 15% or more. The kicker is that many of these high-yield investments have also consistently outperformed the major market averages!

In each monthly issue of High-Yield Investing we sift through various sectors of the economy where smart money appears to be turning its attention. We uncover sectors that we feel are poised to outperform the broader market throughout the coming year. Within these sectors we then look for the most promising income stocks to introduce to our subscribers.

You couldn't ask for a better time to own high-yield income stocks. Here's why:

-- The oldest members of the Baby Boomer generation (those born between 1946 and 1964) recently turned 63 years old and are starting to retire. This means the leading edge of a generation 76 million strong will soon find itself searching for stable, income-producing investments to replace their regular paychecks. This trend will continue for at least another 20 years as this generation continues to progress into retirement.

--
Dividend-paying stocks have outperformed the broader market in recent years, and we expect this trend to continue in the years ahead. Millions of investors will turn to dividends to bring in solid returns in an otherwise lackluster market. According to Standard & Poor's, equity prices are expected to appreciate an average of just +6% a year throughout the next few years. That means dividends will play a huge role in boosting investors' total returns. Dividends have already accounted for about 40% of the market's total returns since 1926, And that is likely to increase with the current trend toward higher dividend payments.

-- A growing number of firms are taking advantage of the reduced dividend tax rate to make their stocks more attractive to investors. Since the 15% tax cap took effect back in 2003, dozens of companies in the S&P 500 have initiated dividends, and the vast majority of firms have raised their dividends. Even now, amid the financial turmoil, over 70% of the S&P 500 pay dividends.

If your portfolio isn't delivering both capital gains and a steady stream of cash income every year, you're missing out on some great opportunities. Carla Pasternak has the knowledge, contacts and expertise to help you identify such winning picks.

Carla focuses her research on investments that offer yields of at least 10%, 12%, even 15% or more (and in many cases, much more!)

And because Carla also takes a conservative approach to her investments, her picks tend to hold up well even when the overall market plummets or trades sideways. Her solid track record (see below for further details) over the past few years is proof positive of that.


What You'll Get Every Month with Your Subscription to
High-Yield Investing...


High-Yield Investing is a monthly investment newsletter that brings you a wealth of information on the world's best and brightest income-oriented investments. Each issue is chock full of market analysis, model portfolios, special reports and proprietary lists of high-yield stocks aimed at helping you become a better and more profitable income investor.

Here's what you'll receive every month as a High-Yield Investing subscriber . . .

Feature Article -- Each month Carla takes a close look at a particular corner of the income investing market... ranging from Canadian Trusts to MLPs to utilities to preferred stocks to closed-end funds. She profiles several income-generating opportunities and backs up her analysis with sound fundamental data. Carla does all the research for you, and puts you in a much better position to boost your annual income by investing in securities with above-average yields.

Mid-Month Updates -- In the middle of each month Carla summarizes the market's recent activity and tells you in plain English how it affects your income investments. She not only tells you how to protect your investments, but she also uncovers some great new dividend-paying stocks and funds to help you generate above-average income in today's market.

High-Yield Stock of the Month -- Each month Carla brings you an in-depth profile of one of the highest-yielding securities on the market. She recently profiled a public investment firm with a 13.5% yield, an equity-linked security paying 14.1%, an Israeli telecom with an 11.8% yield, an income trust with a 9.8% yield, and a royalty trust paying a 9.8% yield.

Upcoming Dividend Payouts -- In each issue Carla provides a detailed list of securities that are getting ready to deliver abnormally large dividends in the coming weeks. For example, Carla recently spotted an unusually generous firm just days before it paid a special dividend of $15.00 per share. Many of our readers use this list to time their entry points to take full advantage of these dividends.

Model Portfolios -- You also gain access to two model portfolios that are chock full of dozens of income investing ideas. We're happy to say that in addition to providing above-average dividend yields, many of the picks in these model portfolios have delivered double and triple-digit capital gains.

10%-PLUS PORTFOLIO
Carla's "10%-Plus" Portfolio includes a variety of investment ideas that sport dividend yields of 10% or better. Carla won't even consider a security for this portfolio unless it offers a double-digit yield. Since inception, the investment ideas in this portfolio have delivered gains of up to +39.1%. They also sport dividend yields as high as 16.9%.

DIVIDEND OPTIMIZER PORTFOLIO
In her "Dividend Optimizer" Portfolio, Carla focuses on quality investments that yield at least 3X greater than the S&P at the time of purchase. She identifies most of these investments using her proprietary Dividend Optimizer Model, which looks for safe, stable investment ideas that offer above-average annual income. Since inception, the investment ideas in this portfolio have delivered gains of up to +22.3%. They also sport dividend yields as high as 19.7%.

High-Yield Investing
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More than anything, our subscribers want advice they can trust. Here are just a few of the things that separate us from the competition:

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See what some of our over 100,000 loyal subscribers have to say about us . . .

"Having read hundreds of financial newsletters on an ongoing basis for over 23 years, I can tell you that StreetAuthority's services are among the very best in the business. I am continually amazed at the broad range of in-depth and consistently excellent research that you offer to your readers. Keep up the good work!"
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"I have done well with some of Carla's investment ideas, but I must comment that her recent note regarding social responsibility was THE MOST RESPONSIBLE such statement I have read. The note was respectful and well done. Thank you for your integrity. I am impressed."
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"High-Yield Investing is the best newsletter I subscribe to. Carla amazes me with the breadth of her coverage and her hard work in getting to the truth."
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Lido Beach, NY

 

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Blockbuster Yields
Scoring Big With Closed-End Funds
Closed-end funds offer higher-than-average yields through a bold strategy known as "dividend capture". In this special report, you'll read all about this money-making method that has propelled many yields into the stratosphere. You'll get the details on four dividend-pumping funds that are throwing off yields that are up to 10X greater than the S&P 500.
Crude Yields
Making Money on America's High Profit Pipelines
Here's the answer to a yield-seeker's prayers. They're called "publicly traded" Master Limited Partnerships and they're just getting the respect they deserve. MLPs are primarily involved in the energy sector where they own and manage the pipelines and infrastructure used to transport petroleum and natural gas around the U.S. Thanks to a constant demand for energy, MLPs generate boatloads of cash and distribute enormous dividends.
High-Yield Hybrids
Combining Stocks and Bonds for Bigger Profits
Here's a security that is the dream of any serious income investor. It pays dividends like clockwork, just like a bond, but with the upside growth potential of a stock. It's called an Enhanced Income Security (EIS). Learn about this hybrid investment vehicle that lets you enjoy the best of both worlds: a double-digit yield with the maximum level of safety possible.
Preferred Yields
Top Stocks for Dependable High Dividends
If you want to be in on stocks with maximum safety, preferred stocks are the way to go. You are guaranteed a fixed dividend on a set schedule regardless of whether earnings go up or down. Fixed payments also make preferred share prices more stable than their common cousins. That can be very reassuring in these tough economic times.
High-Yield Adventures
Investing Like a Venture Capitalist
How would you like to invest like a multi-millionaire venture capitalist at a fraction of the cost? Well now you can. Thanks to a little-known security known as a Business Development Company. These are the new venture capitalists of the 21st Century. They lend money to small-to mid-size companies at high rates -- and sometimes for a piece of the business. The result is exorbitant dividends.
Foreign Yields
Top International Plays for a Gushing Cash Flow
With most foreign economies growing faster than ours, searching for high yields overseas is proving to be lucrative. Meanwhile, if the dollar continues its long-term decline (almost a certainty with the inflationary effect of the stimulus package), it guarantees that every euro, peso, ruble or rupee you get in interest and dividends is worth more and more. That can quickly add up to real money, especially with foreign yields running 3X, 5X, or 7X higher than domestic yields.
Blistering Yields
Scorching Returns on Well-Chosen ETFs
Exchange-Traded Funds have exploded on the investment scene over the past 15 years.  Why are ETFs such investor favorites? Three reasons. First: Convenience. They combine the simplicity of index investing with the ease of trading stocks. Second: Safety. As a diversified group of stocks and bonds, an ETF is more stable than investing in individual stocks. Third: Scorching Yields. ETFs offer some of the highest dividend yields available.
 

Examine High-Yield Investing at Our Lowest Rate Ever
. . . and with ZERO Risk


We're confident that once you examine High-Yield Investing you'll become a subscriber for the long haul, so we invite you to try it for only $39.50 for a quarterly subscription. For less than $40 you could generate thousands of dollars in annual income for the rest of your life!

Best of all, your subscription comes with absolutely zero risk. You can cancel at any time by clicking on the easy unsubscribe link at the bottom of every single issue we send you. Take 90 days to test the newsletter out. If you decide to cancel anytime within those first 90 days, then we'll return your entire subscription fee. You can keep all of our research reports as a thank-you gift just for giving the newsletter a try.

Even if you cancel after the first 90 days, we'll give you a pro-rated refund for the unused portion of your subscription. You truly have nothing to lose.

Best of all, by visiting the link below, you can now subscribe to High-Yield Investing at a steep discount -- just $39.50 for three full months of income-investing advice and ideas.

So, why not take your portfolio to the next level in the months and years ahead? Follow the button below and you'll get our current "Income Stock of the Month," our monthly High-Yield Investing newsletter, access to members-only web site content and model portfolios, plus seven special in-depth research reports.

Your satisfaction is fully guaranteed.  If you are not completely satisfied, simply alert us within the first 90 days for a complete, no-questions-asked refund.  After 90 days you will receive a pro-rated refund for the remaining months of your subscription. You have nothing to lose and you can cancel at any time.
 

Best wishes for high-yield investing success!




Paul Tracy
Chief Investment Strategist
StreetAuthority.com

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