Earnings Expected to Spike +38% Next Year
for this "Fed-Approved" Bank
And it comes with a 10.1% yield...
Dear Investor,
If you're hunting for high yields in the banking
sector, you should tread carefully.
At least according to the warning that came from the
Congressional Oversight Panel (a watchdog set up as part of TARP) recently. The panel says that many banks are still threatened by billions of
dollars of bad loans -- and could lose their footing if the economy worsens.
That's not the case for one bank, though. Income expert
Carla Pasternak's latest find is a bank you don't want to ignore.
Its first quarter profits beat Wall Street's
expectations. Earnings are expected to spike a sharp +38% next year.
Those are some profits you don't want to miss.
You don't have to worry about the threat of bad loans
with this bank. The government says it's so healthy it should be able to survive two more
years of bad economic conditions without a penny of new capital.
And best of all its preferred shares come with a 10.1% yield.
This double-digit yield is about as safe as you'll find
in corporate America. The company is obligated to keep paying it, unless it
goes bankrupt -- which isn't likely to happen.
The company is one of just nine banks to pass the
Federal Reserve's stress test for bank survival during brutal economic
conditions. It's in such good shape that it recently said
"No Thanks" to Uncle Sam's money. It up and quit the government's
Troubled Asset Relief Program (TARP). That says more about its
financial strength than any press release or analyst's report ever
could.
With this bank you could have the rare opportunity to
collect a safe, double-digit yield and benefit from the company's
growing earnings. It's exactly this combination of high yield and capital
appreciation potential that Carla Pasternak looks for in all of her
recommendations.
And if this pick follows in the footsteps of some of
Carla's other picks, then we could be in for some hefty returns.
The last five securities she profiled in High-Yield Investing are all
positive, pulling in up to +71.0% in less than six months.
This solid bank preferred has already
outperformed the S&P 500 by +32.6% over the last year. Don't miss out on
what it does in the next 12 months.
Keep reading below for all the details...
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Income
Stock of the Month
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Pocket a 10.1% Yield From a Bank So Healthy
that It Said "No Thanks" to Uncle Sam's Money
|
Key Statistics:
|
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Security Type: |
Trust Preferred |
|
Dividend
Yield: |
10.1% |
|
Performance Compared to S&P (1
year): |
+32.6% |
|
Dividend Frequency: |
2x/Year |
|
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By Paul Tracy, Chief Investment Officer
In my line of work, I'm always on the lookout for a way
to pocket a high yield on my money without losing much sleep at
night. Who isn't?
I find plenty of head-turning yields. Of course,
they're usually basket cases. But it's a different story with Carla
Pasternak.
Our income-investing specialist seems to have a magic
touch. In every issue of High-Yield Investing she comes up
with a couple new ways to grab a high yield with very little risk.
And every once in a while she finds such
a compelling mix of double-digit income and sleep-like-a-baby
security that she spotlights it in a special feature.
So if you're looking for an irresistible combination of
yield and safety... and a double-digit dividend that is as safe as
you'll find in corporate America... you'll love her "Income Stock of
the Month" for August, 2009.
This out-of-the-mainstream income tool is a hybrid
security that gives you the best of both worlds: the steady income
of a bond and the appreciation of a stock.
Like bonds, preferred stocks pay you steady interest.
And like common stocks, they can also hand you nice capital gains as
the company grows.
But when you buy a preferred stock, you have one huge
advantage over common shareholders...
When a company runs into tough times and cuts or
cancels the dividend, it's tough luck for common stockholders. But
if a preferred stock ever suspends payment (extremely rare!), your
payments accumulate on the ledgers and are paid in full when the
company recovers.
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A Perfect Track Record
This stable preferred stock has a perfect 12-year track record of paying some of the
most generous dividends in Wall Street. Thanks to the strength of
its parent company, it pays a 10.1% dividend and has
shellacked the S&P 500 by +32.6 percentage points over the past
year.
This "trust preferred" security is guaranteed by one of
the nation's oldest and largest banks. And your payments are taxed
as ordinary income, which makes it perfect for tax-deferred
accounts.
Trust preferred securities like Carla's August Stock of the
Month are even safer than regular preferred stocks because they rank
higher on the payback scale. Holders must be paid before
holders of common or traditional preferred stock. If it does defer a
payment, all missed dividends must be repaid before anyone else gets
a cent.
The issuer is one of just nine banks to pass the
Federal Reserve's stress test -- designed to see if a bank can survive
brutal economic conditions.
This bank is in such good shape that it recently said
"No Thanks" to Uncle Sam's money. It up and quit the government's
Troubled Asset Relief Program (TARP). That says more about its
financial strength than any press release or analyst's report ever
could.
Even after a horrible year for banks, this one has
almost $2.5 billion in cash, a decent long-term debt to equity ratio
of 1.1 to 1 and more than 3 times interest coverage. In addition,
the Federal Reserve has concluded that it is financially secure
enough to endure two more years of bad economic conditions without a
penny of new capital.
Operations are humming along. First quarter profits
beat Wall Street's expectations. Earnings are expected to spike a
sharp 38% next year.
Trouncing Competing Yields
There's no guarantee, of
course, but invest $50,000 now in this 10.1% yielder, and you're
looking at a nice little stipend of $5,050 a year. And that's just
in the first year. As long as the dividend payout remains steady,
your income will roll in year after year -- and increase as it
compounds its assets.
By comparison, the 2.8% yield offered by the S&P 500
looks downright puny. Even the Dow Jones Select Dividend Index, with
its 4.7% yield, can't hold a candle to this cash cow. Corporate
bonds don't come close either. 10-year "AAA" rated corporate paper
yields just 5.5%.
|
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Publisher's Note
Say "Good-Bye" Forever to Stock Market Worries
Dear Income Investor,
Carla Pasternak's safety-first approach to income
investing gives you a priceless opportunity to sit
back and enjoy life instead of sweating out the
market's ups and downs.
This stress-free approach to wealth has made thousands
of High-Yield Investing readers wealthy. Of
course, the only performance record that really
counts is what High-Yield Investing does for
you. So if you prize a high current income,
outstanding growth, and above all safety, I'd like
to invite you to join the thousands of confident
investors who are already using High-Yield
Investing to harness the wealth-building power
of these financial juggernauts.
Try Out Our Service FREE
This Special Issue introduces you to Carla's work at
High-Yield Investing. Paul explains her thinking
and investing approach for you to peruse at your
leisure.
If you like what you see, I invite you to try Carla's
monthly advisory at no risk. In addition to all your
regular monthly print issues, you'll also get
midmonth email updates, access to a subscribers-only
web site and a host of special investment reports.
I hope you enjoy this Special Report and consider
taking us up on this no-lose offer today!
Sincerely,
Lou Betancourt
Publisher
P.S. If you like the idea of a steady stream
of dividend checks in your mailbox, you'll want to
check out the special report we've prepared for new
subscribers called Cash Cows: Great Companies
With 10%+ Dividend Yields. Keep reading to see
how to get a free copy of this report. |
|
And Treasury bonds? Forget
it. The 10-year Treasury currently pays a measly 3.6%.
Not horrible, but not even in the same ballpark as our pick. It
would take almost three years for treasuries to pay you what Carla's
"Income Stock of the Month" will pay you in the next 12 months.
A Closer Look at My Stock of the Month for August 2009
What Gives This Stock Its "Edge" Over the
Competition?
Impressive Yield -- This preferred stock's 10.1% legally
obligated dividend yield is one of the highest available on the
market today. It yields more than 99% of all other stocks in the
country.
Reliable Dividends -- Our "Income Stock of the Month" has paid dividends
like clockwork since its 1997 inception, never missing a payment.
Good for Retirement Accounts -- Your income is taxable at the
ordinary income tax rate, making it perfect for a tax-deferred IRA
type of account.
Conservative Financing -- With almost $2.5 billion in cash, a
reasonable long-term debt to equity ratio of 1.1 to 1 and more than
3 times interest coverage, this company has plenty of cash on hand
to pay dividends for years.
Strong History of Outperformance -- Anyone who owns our
"Income Stock of the Month" has beaten the market by +32.6 points
over the past year -- thanks to a gain of +11.8% against a fall of
-20.8% in the S&P.
Stable Backing by Deep Pockets-- The bank behind these
preferred shares is legally obligated to keep the payments
coming -- it's not an option. And since the bank just rejected Uncle
Sam's financial help and also sailed through the government's
"stress test" there is zero reason to expect these payments to stop.
With all of these bullish factors in mind, you might
want to lock in this rock-solid stock's abnormally high dividend
today, while it's still available. If you're ready to learn the name
of our "Income Stock of the Month," plus join the thousands of
subscribers to High-Yield Investing, just click the link
below.
Tell me the name of this stock now!
The 10.1% dividend yield
offered by our "Income Stock of the Month" is even more
impressive when you examine what it means for your portfolio. Just
how profitable could this investment be for you? Here are the annual
cash payouts that a 10.1% dividend brings in for portfolios of
varying sizes:
|
Portfolio Size |
Annual
Cash Dividends |
|
Portfolio
Size |
Annual
Cash Dividends |
|
$50,000 |
$5,050 |
$500,000 |
$50,500 |
|
$100,000 |
$10,100 |
$750,000 |
$75,750 |
|
$250,000 |
$25,250 |
$1,000,000 |
$101,000 |
Click here to get the name of this stock!
Plenty More Like This One Every Month
In each issue of High-Yield
Investing Carla uncovers companies that offer mouthwatering dividends and
strong capital gains potential.
Her two model portfolios are full of high-quality
income investing ideas. Many of her holdings sport dividend yields of 8%,
10%, even 13% or more. Here is a peek at her current portfolio...
| Business
Profile |
Yield |
|
Preferred stock |
9.2% |
|
Income fund |
10.2% |
|
Insurance stock |
11.1% |
|
Airplane lessor preferred |
10.4% |
|
U.S. REIT |
9.4% |
|
| Business
Profile |
Yield |
|
Enhanced income security |
10.1% |
|
Grocery store preferred |
13.6% |
|
Exchange-traded bond |
7.2% |
| Stock/bond
fund |
6.5% |
|
Master limited partnership |
7.4% |
|
To be fair to her paying
subscribers, Carla has to keep these picks confidential in this public
forum. But if you visit the link below, you'll get the name of her "Income Stock
of the Month" plus immediate access to all the high-yielding stocks and
funds in the table above.
(You'll also get up to five free research reports...
PLUS her monthly newsletter and mid-month updates filled with dozens of similar
income investing ideas.)
|
Try this Unique Service and Relax
While Your Wealth Grows
If you want a reliable portfolio
there's no better place to look than in High-Yield Investing.
The investments you'll find in Carla Pasternak's monthly service combine market-beating
gains with a patient, relaxed approach to wealth-building.
They offer you a way to build your wealth and set
yourself free to enjoy life, too. They may not be flashy, but these
dependable investment winners have made rich men and women of thousands of
investors, and they can do the same for you if you let them.
One of her most recent picks is something you don't run
into every day: an Enhanced Income Security. This unusual stock/bond hybrid
gives investors the stability of a bond, plus the upside of a stock.
Thanks in large part to its unique corporate structure,
it is now delivering a fat 10.1% yield -- three times the S&P 500's. And
because it operates in the non-cyclical packaged-food business, it should
continue to deliver steady dividends in just about any economic environment.
When the *%#! Hit the Fan Last Year...
Our Income Jumped +16.2%!
No one likes a bear market. But we
income investors look at things a bit differently than "regular" investors.
It's not the price of an asset that interests us, it's how much cash it
throws our way.
After all, if you're an income investor, it's the cash
in your pocket at the end of the year that counts. And I think it's fair to
say that High-Yield Investing subscribers have been more than happy
with the cash in their pockets recently.
At the worst point of the stock-market rout last
October, the dividend payouts for the 19 companies in our model "Dividend
Optimizer" portfolio had increased +16.2% over the previous year!
Excuse me if I brag a little, but that's quite a feat
given that dividend cuts among the S&P 500 last year came to more than $40
billion. Even companies like Bank of America, which had increased dividend
payments for 25 years, were forced by the financial crisis to cut back last
year. But only one of our picks cut its dividend (by -7.8%) while the other
18 either held flat or rose, by as much as +111.5%.
How are we sidestepping the
dividend cuts that have hammered so many other investors?
Simple: We focus on safety as much as yield. We've been
avoiding run-of-the-mill stocks in favor of investment-grade preferred
shares and exchange-traded debt. For example, Capstead Mortgage Preferred
B, which carries a rich yield of 9.2% and sends you a steady monthly
check, and has held stable amid the market tumult.
Preferred stocks have come through time and again for
us at High-Yield Investing. Our A&P 9.375% preferred stock is
yielding 13.6%... giving us a super-safe $13,600 per year on a $100,000
investment. A&P and its 450 supermarkets would have to crumble into the sea
before it cut our payment.
In this wasteland, we're even managing to find
cash-rich companies that are increasing dividends. Archer-Daniels Midland
recently boosted its payout. So did Coca-Cola, Monsanto, Wal-Mart and
Kimberly-Clark.
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A Lifetime Preparing
for the Job
 When
she started High-Yield Investing in May 2004, Carla Pasternak
took on a job she had been preparing for all her life.
Carla has earned a wall full of advanced degrees, but
her most important investment lesson in life came to her as a little
girl.
For her 10th birthday, her grandfather decided she was
old enough to learn about the stock market. He bought her 10 shares
of AT&T to mark her 10 years of life on earth. A year later, she
sold the shares for a nice profit and bought her first bicycle. She
realized early on that the right investment could change your life.
For Carla, investing is a family affair. Her
grandmother was a stock picker too. She would shop at a busy store
like Macy's and decide she wanted to own a piece of the action. Carla's grandmother never went past high school, but her
stock-picking strategies weren't much different than those of
legendary 10-bagger Peter Lynch.
An Obsession with Safety
The portfolio her
grandparents amassed is still part of Carla's life. Her mother
inherited it, and Carla now manages it. This money is a family
heritage and Carla is determined to preserve her family's legacy.
That's why she puts so much painstaking research into every
investment idea, looking at where the income is coming from, how
secure it appears to be, and what the total return could look like
down the road.
Her mother lives off her portfolio income so when Carla
tells her subscribers that she's found a stock safe enough for her
retiree mother, she means it. It's her own mother's money on the
line, not just hers, and not just yours.
Before joining StreetAuthority, Carla wrote annual
reports for public companies, including many high-yielding Canadian
income trusts.
That's how Carla earned her income-investing stripes.
She spent years poring over notes to financial statements and
teasing out where the money came to pay dividends -- a skill that
she now puts to use for her subscribers in every issue of
High-Yield Investing.
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And that is crucial. According to Ned Davis Research,
firms in the S&P 500 that raised dividends gained an average of +8.8% per
year between 1972 and 2008. Those that cut dividends or never paid them
produced zero return over the entire span.
So it's clear that dividend-paying stocks have crushed
the broad market over the decades. And I expect this trend to continue as
investors look to dividends to capture some cash flow in a stingy market.
Meanwhile, don't forget that the tax code still favors
dividends over regular income. Unlike ordinary income, which is taxed up to
38.6%, you lose only 15% of your dividends to the taxman.
How to Win the Race Before You Start
The industries Carla covers in
High-Yield Investing are delivering some of the highest dividend yields
on the planet. In fact, she locked in most of the names in our portfolio when
they were yielding more
than the historical stock market return of 9% a year. So we're beating the
market right out of the gate in dividends alone!
We're finding high-yielding stocks, funds and ETFs that
are showering our subscribers with more cash than they know what to do with.
You might be surprised how "boring" some of these cash
cows are. For example, we discovered a business that invests in toll
roads, tunnels and airports that yields 10.7%!
This firm rakes in fees paid by 80 million consumers
around the world every day. And because this revenue is almost
recession-proof, it means predictable cash flows and steady dividends for
us.
What You'll Get Every Month with Your Subscription
to High-Yield Investing...
High-Yield Investing is a
monthly letter covering the world's best and brightest income investments.
Each issue is chock full of market analysis, model portfolios, special
reports and lists of high-yield stocks and ETFs for income investors.
Here's what you'll receive every month in print (and on
the web) 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
Master Limited Partnerships to utilities to closed-end funds. She profiles new
income-generating opportunities and shares her research and the important
fundamental data with you.
 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 yourself, but also
share any new dividend-paying stocks and funds she's finding at the moment.
 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. In recent months she's profiled a public investment firm with a 13.5% yield, an
equity-linked security with a 14.1% yield, an Israeli telecom paying 11.8%,
an income trust with a 9.8% yield, and a royalty trust paying 9.8%.
 Upcoming Dividend Payouts -- In each issue
Carla lists securities that are
getting ready to deliver abnormally large dividend payments. For example,
she
recently spotted an unusually generous firm just days before it paid a
special dividend of $15.00 per share. Many readers use this list to time
their entry points to take full advantage of these dividends.
 Two Model Portfolios:
10%-PLUS PORTFOLIO
Carla's "10%-Plus" Portfolio includes a variety of investments sporting yields of
10% or better. She won't even consider a security here unless it is paying
double-digits. The picks in this portfolio have delivered gains of up to
+80.1%.
DIVIDEND OPTIMIZER PORTFOLIO
In my "Dividend Optimizer" Portfolio, Carla looks for quality investments that
yield at least 3X more than the S&P 500. She identifies them using her
proprietary Dividend Optimizer Model. Since inception, her picks in this
portfolio have delivered gains as high as +118.1%. Right now, the top yield
is 13.0%. Register Now and Get Up to Five
In-Depth Research Reports as Our Gift...
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Thanks to their monopoly status,
utilities are some of the most solid and predictable
companies on the market. With stable revenues and a
track record of returning the bulk of their income to
shareholders, utility firms have also been some of the
world's greatest distributors of dividends. If you're
ready to put a little capital in Wall Street's
overlooked millionaire-makers, then this report is the
ideal place to start. |
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Examine High-Yield Investing For Just $39.50... and with ZERO
Risk
If you're ready to use
High-Yield Investing to safely accumulate serious, lasting wealth, your
timing is great. Because as a special introductory offer, you can get a full
three months of this one-of-a-kind resource for only $39.50. And don't
forget the special reports that I'll send you free.
High-Yield Investing is the only periodical
devoted exclusively to helping you make money in every category of income
investing. Nowhere will you find a more thorough ranking of your income
investment options than in this monthly investment bulletin.
You'll be joining a growing brotherhood of like-minded
income lovers who share our love for reliable investment ideas delivering
above-average income and strong capital gains.
I'm confident that once you examine your first issue of
High-Yield Investing you'll become a subscriber for the long haul. So
I invite you to try it out for only $39.50 for three months. For less than
$40 you'll be on your way to generating thousands of dollars in annual
income for the rest of your life!
Or you can subscribe for a whole year of High-Yield
Investing for just $99. You save $30 off our regular rate of $129 and
pay almost $60 less than you would with the quarterly subscription.
Even better, why not choose the two-year option for
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for two years, because no matter how long you subscribe, you're protected
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My Total Guarantee
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Your subscription comes with absolutely
zero risk. You can cancel at any time by calling us or clicking on the
easy "unsubscribe link" on our website.
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 -- every single cent. 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.
Why not click below to subscribe today and lock in the
information you need to take your portfolio to the next level in the months and
years ahead. You'll get our current "Income Stock of the Month," up to two years of
High-Yield Investing, access to members-only web site content and model
portfolios, mid-month email updates, plus our special in-depth research reports. |
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Guarantee to You
If you are not completely satisfied, simply alert us within the first 90
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After 90 days you will receive a pro-rated refund for the remaining
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Start Your Own Cash Machine Today!
With the S&P 500 yielding 2.8% and
CDs barely paying 2%, you will never get the income you need to live and
retire comfortably from the mainstream asset pools most investors swim in.
Especially with inflation chopping your return off at the knees.
By contrast, we have an entire portfolio of investment
ideas that will pay you an annual cash income above 10% a year. And that's
before we even talk about capital gains.
So what do you say? Are you ready to put a little
capital in these tireless investments that never stop paying you back? All
you need is a subscription to High-Yield Investing, a brokerage
account and a mailbox to pick up your dividend checks in.
With best wishes for safe profits,
Paul Tracy
Chief Investment Officer, StreetAuthority
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P.S. Here's what some of Carla's 20,000+
subscribers have to say about her 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
"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!"
-- Steven Halpern
Editor, TheStockAdvisors
"You guys are far and away one of the best in the business - I
have been in the business since 1960 in brokerage, trust management,
and now as a registered investment advisor (RIA) in Maine. Your
coverage has helped me outperform the indexes by a wide margin,
especially since I opened shop here in 2002 after running a Trust
Department of over $100 million in equities. Keep up the good work -
I have been meaning to applaud for some time. Thanks!"
-- Recent Comment from a Subscriber Survey
"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."
-- Roderick Baldwin
San Francisco, California
"I'm impressed by the performance of Carla Pasternak's past
choices for her model portfolios, and I can only guess that her
recent picks will do well, too."
-- Richard Reilein
Chicago, Illinois
"Since I'm retired, it's most important to me to generate
sufficient yields on my investments. Your High-Yield Investing
newsletter is a "gem" and has given me many terrific ideas to help
supplement my income. Thanks, and keep up the great work."
-- Marty Kastriner
Lido Beach, NY |
P.P.S. Remember, you save more and get more with a two-year
subscription! Join us for a double term and save a full $79 off the regular
price... plus get three additional free investment reports: Northern
Beauties: Three Great Canadian Trusts for Yield and Gains, Real
Estate You Can Trust: Three High-Yielding REITs with Recession-Proof
Dividends and Best Utilities You Can Buy Now.
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