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Want a Reliable
Dividend?
How About Quarterly
Payments Since 1885?
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 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 income
and sleep-like-a-baby security that she spotlights it in a special
feature.
This month Carla's done it again. She's uncovered a
group of six high-yielding stocks whose profits are guaranteed by
law.
Carla's relentless search for dividend paying bargains
brought her to an out-of-favor sector: Utilities. Not just any
utilities, but six regulated and diversified utilities that sell
electricity, natural gas, and water.
Here's a snapshot of Carla's super-safe utility picks.
(We must reserve full details for paying subscribers to High-Yield
Investing.) But you will get Carla's entire write-up the moment you
try a money-back trial subscription
here.
|
Company |
Aug. 21 Price |
Yield |
5-Year Yield |
|
Utility #1 |
$20.46 |
5.9% |
4.3% |
|
Utility #2 |
$21.99 |
6.3% |
5.4% |
|
Utility #3 |
$13.57 |
6.8% |
4.7% |
|
Utility #4 |
$35.46 |
7.7% |
4.7% |
|
Utility #5 |
$34.74 |
5.4% |
4.2% |
|
Utility #6 |
$40.50 |
5.8% |
5.1% |
|
Average |
|
6.3% |
4.7% |
You would have to look hard to find more reliable dividend
payers than these six. They've been sending out checks for
decades. One has been dishing out steady dividends every
quarter since 1885!
Better yet, these six are increasing their
payouts. Four of them even hiked their payouts in the first
half of 2009 -- the most dismal six months for dividends in
memory. The other two kept theirs steady during the market
downturn. Meanwhile 367 other U.S. companies cut theirs.
But what's really intriguing right now about these six
stocks is how much higher their yields are than usual. Over
the past five years, their average yield was 4.7%. Today,
they pay 6.3%--a 34% "raise". That's a lot more generous
than 10-year Treasuries at 3.6% or the S&P 500's 1.9%.
How safe are their yields? Plenty. Utilities
typically pay out a conservative 70% to 75% of earnings. All
six fall within that range. Moreover, every single one is
projected to grow earnings next year, which means more cash
in the pot for dividends.
Their valuations are appealing, too. They all trade at
just about book value -- well below the 1.5x book of the
average utility stock. And their average P/E is 12 times
next year's earnings versus 16.5 times for the broader
market.
Wall Street's Best-Kept Secret
Stocks
like these -- old-fashioned regulated bread-and-butter utilities --
are the best kept secret on Wall Street.
They are monopolies that produce something every one of us uses
every day.
They have guaranteed rates of return; their profits are mandated by
law.
They are arguably the most recession-proof stocks you can buy.
They pay the highest dividends on Wall Street, easily twice the
yield of the
Dow Industrials
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Carla's six picks are old-school regulated utilities. The
kind whose profits are set in advance by law: basic electricity,
water and natural gas providers.
Since the market broke down in early 2000, regulated
utilities have saved the financial lives of their fortunate
shareholders. These resilient old-fashioned wonders have posted a
+117% profit while the S&P 500 is down -22% and NASDAQ has
plunged a chilling -63%.
Their generous yields come from the flow of cash
generated by services the the average American simply cannot live
without.
Everyone buys electricity, heat and water, even when
money is tight. They may cancel the Caribbean cruise, but they're
not going to sit around in the dark taking cold showers with
rainwater. That unwavering, non-stop demand is a luxury that very
few providers of any product or service enjoy.
It's hard to lose when you sock away some money in
these high-yielding beauties for anything remotely approaching the
long term: No regulated utility has ever, ever gone out of business.
Not one.
Her Favorite Right Now
Of the
six utilities that passed Carla's test, she says one offers the best
combination of yield, upside potential, conservative payout ratio,
and earnings growth.
It's the largest electric utility in a Midwestern
state, and has been doling out increasing quarterly dividends since
1924. The current 6.0% yield is well above its five-year average of
4.3%.
This spectacularly stable business is an excellent
defensive income position. It is paying out just 67% of projected
2009 earnings.
Finally, the company's outlook looks bright. In 2005,
it launched a massive 10-year, $3 billion improvement project, which
includes new power plants and environmental upgrades to increase
efficiency and profitability. Regulators have been cooperative
giving the company just about everything it has requested, including
rate hikes to help pay for its long-term projects.
Want the name of this super-safe yielder? Take a
risk-free look at High-Yield Investing and you'll find out
instantly. |
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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. |
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Plenty More Like These 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 portfolio as it stands today...
| 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% |
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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.)
Order Here
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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%.
Order Here
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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Best Utilities You Can Buy Now
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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three more brand-new investment reports free! It plainly makes sense to go
for two years, because no matter how long you subscribe, you're protected
by...
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
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as a thank-you gift just for giving the newsletter a try.
Even if you cancel after the first 90 days, we'll give
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have nothing to lose.
Why not click below to subscribe today and lock in the
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years ahead. You'll get our current "Income Stock of the Month," up to two years of
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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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Order Here
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 |
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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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