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Gurus’

Best
Ideas
For
2010
DIVIDEND
DARLING$
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W
ith the sharp recovery in stocks since the market
bottomed on March 9, 2009, it appears that investors
have fallen back in love with growth stocks and chasing
momentum. Despite the comparative optimism in the markets today
versus the despair that was nearly universal one year ago, there are still
reasons to be apprehensive about the prospects for continued price
appreciation. One way to play it a bit more conservatively is to seek out
good stocks and funds that also pay dividends.

From utilities to income trusts and blue-chip industrial stocks, we


present you in this special report with six investment ideas that have
strong yield components. Keep in mind that dividends, like long-term
capital gains, are taxed at 15% instead of regular income tax rates, which
run as high as 35%. Plus, don't forget that dividends since 1926 have ac-
counted for more than one-half of the total return from investing in
stocks. After coming off of a decade when U.S. stocks produced negative
returns, you need dividends as a cushion against continued rough times.

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Kelley Wright
Investment Quality Trends
Chevron Corp (nyse: CVX)

S&P A- Quality Ranking, ROE 29%. Of the major integrated oil companies, Chevron derives the biggest
bang for the buck from oil exploration and production; about 86% of its profits in 2008. With 11.2 bil-
lion barrels of oil-equivalent reserves, CVX is well positioned if crude oil prices, which rose about 75%
in 2009 to around $80 a barrel, continue to move higher through 2010. Since I believe that a reprise of
$100 per barrel plus is a layup in 2010, CVX should knock the cover off the earnings ball. Paying unin-
terrupted dividends since 1912, the current cash payout per share of $2.72 results in a dividend-yield of
3.50%. With an average annual dividend increase of at least 10% per year over the last twelve years, CVX
has earned the IQ Trends’ "G" designation for outstanding dividend growth.

(CVX)

Don't go into the market alone. Forbes offers more than 40 invest-
ment newsletter advisory services that provide detailed model port-
folios and focus on asset classes from fixed-income securities to
small-cap stocks, options, technology, international stocks, precious
metals, energy, ETFs and many more. CLICK HERE to learn more.

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Kelley Wright
Investment Quality Trends
Altria Group (nyse: MO)

S&P A Quality Ranking, ROE 29%. Altria Group is a holding company whose operating companies
include Philip Morris USA, U.S. Smokeless Tobacco Company, John Middleton and Ste. Michelle Wine
Estates. The company's brand portfolio consists of successful and well-known brand names such as
Marlboro, Copenhagen and Skoal.
As its primary products are obviously tobacco related, Big MO is the ultimate "sin" stock. While to-
bacco may not be politically correct in some circles, Altria Group is the archetype cash cow and prac-
tically prints money. The highest yielding stock in IQ Trends’ Lucky 13 with a current yield around
6.90%, the company has paid dividends since 1928 and is most definitely "G" rated by IQ Trends for
outstanding dividend growth.

(MO)

Good news: The Dow can cruise 28% higher before it gets
overvalued. So what do you buy? Using patterns of historical dividend
yields in relation to stock prices, Investment Quality Trends calcu-
lates corresponding 'undervalue' and 'overvalue' levels for the overall
market and individual dividend-paying stocks. CLICK HERE for
dozens of undervalued dividend payers.

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Richard Lehmann
Forbes-Lehmann Income Securities Investor
Gabelli Global Gold, Natural Resource & Income
Trust (amex: GGN)

The one security I have selected for several of my model portfolios for 2010 is the Gabelli Global Gold,
Natural Resource & Income Trust. My approach to income investing has been to diversify over a multi-
ple of income drivers and this fund provides several. It provides geographic diversifications into gold and
natural resources, areas which I feel will be strong performers in 2010. It also offers a 10% yield paid
monthly and trades at a small premium to its net asset value.

(GGN)

For every $1 invested at the beginning of 2000 in the S&P 500, you
got back 88 cents. Every $1 in Richard Lehmann's medium-risk
portfolio grew to $2.30. It was up 56% in 2009 and still yields
8.82%. CLICK HERE for instant access to all four portfolios in
Forbes-Lehmann Income Securities Investor.

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Gordon Pape
Canada Report
Daylight Resources Trust (OTC: DAYYF)

This underrated Canadian energy trust hit the news earlier this year with the acquisition of mid-level
producer Highpine Oil & Gas. The move boosts Daylight's cash flow and provides better production bal-
ance between oil and natural gas. The trust pays monthly distributions of C$0.08 per unit to yield
10% at the time of writing and should be able to maintain that payout even after the new trust tax
comes into effect in 2011. I have a one-year target of C$12, which with distributions projects to a 33%
return in 2010. Buy DAYYF.

(DAYYF)

Canada Report subscribers racked up gains in recent months of 55%


in BCE (Bell Canada) and 70% in Toronto-Dominion Bank. CLICK
HERE to see all of Gordon Pape's recommendations in the Canada
Report, including what to do with Research in Motion right now!

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Jack Adamo
Insiders Plus
Vodaphone (nyse: VOD)

As the market rally matures in 2010, one group that is outperforming the market is utilities. High divi-
dends and steady cash flows promise superior long-term total returns and resistance to market pullbacks.
One of my favorites is Vodaphone Group PLC (nyse: VOD). Vodaphone is a British telecom that owns
49% of Verizon Wireless, the jewel of the North American wireless phone industry. It is widely believed
to have the best network in America. The company is doing very well, but will fare even better next year
when Apple's exclusive deal with AT&T ends and Verizon begins selling iPhones and taking market share
from AT&T. I prefer Vodaphone to Verizon stock because Vodaphone has great growth prospects in
world markets, especially India, and Verizon's landline business is sluggish.Vodaphone shares yield about
6%. Buy Vodaphone up to $28.

(VOD)

Jack Adamo's readers have racked up huge gains in Compania de Minas


Buenaventura (BVN) and Teva Pharmaceutical Industries (TEVA). Should
you still buy either of these? How about other gold and drug stocks?
CLICK HERE for Jack's latest advice in Insiders Plus.

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Jack Adamo
Insiders Plus
Southern Company (nyse: SO)

I also like Southern Company, one of the steadiest growing electric utilities in America, due to its dom-
inant position in the fast growing South. It has a compound annual total return of 14.7% annualized for

(SO)

the last 10 years, and prospects remain good. The shares yield 5.1%. Buy Southern Company up to $40.

If you like stocks that double and still yield 7%-17%, Jack Adamo's
Insiders Plus delivers the goods with Annaly Mortgage and MLPs like
Plains All American Pipeline and Enterprise Products Partners. CLICK
HERE for access to the Insiders Plus model portfolio with all
recommended holdings and updated buy limits.

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