PDF Dividend Dreams: The Best 10 Dividend Stocks to Own Now ...

Dividend Dreams: The Best 10 Dividend Stocks to Own Now

Mike Burnick

Dividend Dreams: The Best 10 Dividend Stocks to Own Now

By Mike Burnick March 10, 2017

Real Wealth Report

RWR-0127

Page

Dividend Dreams: The Best 10 Dividend Stocks to Own Now

Mike Burnick

Dividend Dreams: My High-Yield Solutions for a Low-Yield World!

A 30-year Treasury Bond yielding 3%? Are you serious? I wouldn't buy that kind of paper with the money of my worst enemy! The average investment grade corporate note yielding a few basis points more? How is anyone seriously supposed to retire on that? And don't even get me started on the typical 5-year Certificate of Deposit. 1.3% isn't enough to cover a year's worth of inflation, much less generate a return that's remotely useful. Let's face it, folks. While interest rates have started to rise from their record lows in 2012, and are likely to be in a bull market for years to come, this is still a low yield world. It's one where income-seeking investors have scrounge for pennies thanks to reckless Fed-heads in Washington ... even as fat-cat bankers on Wall Street make billions holed up in their gleaming New York skyscrapers. But what if I told you that you could turn the tables on Washington AND Wall Street? What if I told you could earn relatively safer yields of 5.8% ... 7.9% ... 8.7% or more ? AND as much as 10% or more in capital gains to boot? And what if I told you each and every one of the "Dividend Dream" investments spinning off those gains earned grades of "A" (excellent) and "B" (good)? Not just from some dubious, bought-and-paid-for Wall Street analyst or firm, but from the 100% independent, conflict-ofinterest-free Weiss Ratings. The award-winning model and research methodology behind those ratings, which I explain in much more detail in this report, can give you the confidence you need as an investor ? before putting your hard-earned money to work! Now I hope I have your attention! And more importantly, I hope I am motivating you to think about risk and reward in a revolutionary, new way. That's because the investing world has been turned completely upside down in the past few years, thanks to massive central bank meddling and Wall Street misdirection! Most of what you've been told by the conventional thinkers on Wall Street is, frankly, WRONG! The historical assumption has always been that bonds are "safe" and stocks are "risky." But in 2013, bonds with maturities of 10 years or more collapsed in spectacular fashion! Investors lost more money in bonds than they had in any year since 1999. Meanwhile, select, high-yielding "Dividend Dream" stocks with high Weiss Ratings... in sectors experiencing their own private, secular bull markets ... delivered a fantastic combination of generous yields and hefty capital gains ? gains that continued into 2015 as well! These aren't fly-by-night companies in radically overvalued, highly risky lines of business. They're companies whose profits and sales are booming, whose fundamentals are rock-solid. That doesn't mean losses aren't possible, of course. No fundamental or technical analysis methodology is foolproof. But if you're letting these opportunities pass you by, and investing based on the false investing "wisdom" being dispensed on Wall Street, I think you're doing

Page

Dividend Dreams: The Best 10 Dividend Stocks to Own Now

Mike Burnick

yourself a huge disservice. And I want to correct that problem as soon as possible by talking about where I believe you can generate relatively safe, higher yields in today's low-yield world!

Three Key Sectors That Have Been Offering the Best Yields and Biggest Gains in a Low-Yield World!

Let's start with the big picture. Over the last few years, three key sectors have been offering the right combination of strong yields and big gains in this low-yield world.

The first is consumer staples, the kinds of companies that make the soup and salad dressings we eat, the soda and bottled waters we drink, the diapers we change, the cleaning and paper products we use, and everything else we need on a daily basis!

Demand for these kinds of products is relatively inelastic. You're still going to eat and drink whether the economy is booming or not. These companies are expanding worldwide into new emerging markets where growth potential is stronger than back home.

Many of them pay out handsome, above-market dividends ? and therefore sport yields that are well above what you can get on vulnerable government bonds. And more recently, they've been turning to acquisitions, spin-offs and other corporate maneuvers to boost shareholder value, helping propel their share prices markedly higher!

What's the second market sector that's been offering nice yields, stable businesses, and capital gains potential? The utilities sector! No matter the economic environment, people still need to heat and cool their homes, and companies need to power their factories, warehouses, and stores.

Then there are Master Limited Partnerships, or MLPs. These companies focus on storing and transporting oil, natural gas and other petroleum-based products, NOT producing them! This helps insulate them from the vagaries of energy pricing. They also pay out handsome dividends from the cash those businesses throw off.

MLPs have been an outstanding way to combat the interest rate repression practiced by central banks around the world. Not only that, but many of these names are benefitting from the boom in DOMESTIC oil and gas production we're seeing in new U.S. locations, from North Dakota to the Mid-Atlantic to New Mexico, Wyoming, and beyond!

So to profit from those trends, you could buy something like the following:

1. The Consumer Staples Select Sector SPDR Fund (XLP). This ETF holds companies in the sector, including names like Procter & Gamble, Coca-Cola, and Philip Morris International. It features a gross expense ratio of just 0.14%.

2. The Utilities Select Sector SPDR Fund (XLU). This ETF owns leading electric and gas utilities, including names like Duke Energy, Southern Co. and Dominion Resources. It features a solid combination of low costs (gross expense ratio: 0.14%).

3. The Alerian MLP ETF (AMLP). It owns 24 leading MLP companies, including Enterprise Products Partners, Energy Transfer Partners, and Markwest Energy Partners.

But I've gone much deeper than that. I've spent several weeks digging UNDER the surface -- not just in the sectors I just outlined, but also in OTHER, less obvious ones. My goal? To find the hidden "Dividend Dream" stocks with the potential to perform much better than those broadbased ETFs. I've identified 10 companies that offer higher yields AND much greater capital gains potential. And that's what I want to talk about with you now!

Here are the Top Six ...

Page

Dividend Dreams: The Best 10 Dividend Stocks to Own Now

Mike Burnick

Dividend Dream Stock #1: A Utility Firm That's on the March Higher!

My first pick is DTE Energy Co. (DTE), a top-notch Detroit-based utility that ... * Operates a network of gas storage, distribution, and pipeline facilities serving producers and users of gas in key markets like the Marcellus Shale, and the Chicago and New York City metropolitan areas; * Runs on-site power facilities for companies such as steel manufacturers and pulp and paper makers in locations as diverse as Alabama, California, and New York. My recommendation: Buy $20,000 worth of DTE at the market.

Dividend Dream Stock #2: A Refiner Capitalizing on the Boom in Domestic Energy Production ? And Spinning Off Hefty Yields in the Process!

My next pick is Northern Tier Energy LP (NTI). NTI is a refinery, storage, pipeline, and retail gasoline and convenience store operator with locations clustered in the Minnesota and Wisconsin markets. Its St. Paul Park, Minnesota refinery can process roughly 100,000 barrels per day of oil. It sells the gasoline and diesel produced by the refinery through a network of over 250 SuperAmerica convenience stores, as well as via other customers.

NTI's geographic location is one of its most attractive qualities. It can source its oil from cheaper Canadian producers and, increasingly, suppliers drilling in North Dakota's Bakken Shale region. Those crude grades typically cost less than oil priced off world benchmarks or in moreexpensive domestic regions, enhancing NTI's refining margins. So you can think of NTI as a great way to profit from the boom in domestic oil and gas production!

My recommendation: Buy $20,000 worth of NTI at the market.

Dividend Dream Stock #3: A Tobacco Company That's Evolving in a Changing Business Environment!

Reynolds American (RAI) is the second-biggest tobacco company in the U.S., the result of the 2004 merger of the former R.J. Reynolds and Brown & Williamson. It sells the Camel, Kool and Salem brands of cigarettes, as well as smokeless tobacco sold under the Grizzly and Kodiak brands, and it's going to get even bigger as a result of its recent merger with rival Lorillard.

Bottom line: The cigarette business has been gradually shrinking in advanced markets like ours. But new smokeless tobacco products are helping make up for that. Plus, the increased consolidation activity and the juicy yields available in the sector make them look attractive to investors.

My recommendation: Buy $20,000 worth of RAI at the market.

Dividend Dream Stock #4: A Company With Decades of Experience Delivering Energy to Our Doorsteps!

Ferrellgas Partners L.P. (FGP) is a company that has been doing a relatively mundane, steady business since 1939, delivering propane gas and equipment to the residential, industrial, and

Page

Dividend Dreams: The Best 10 Dividend Stocks to Own Now

Mike Burnick

commercial markets. It now services some 1 million customers spread across the 50 U.S. states, plus the District of Columbia and Puerto Rico.

It's organized as a Master Limited Partnership, or MLP. These companies aren't thinly capitalized, wing-and-a-prayer wildcatters who can go out of a business in a New York Minute if oil prices plunge or they hit a few dry holes.

Instead, they generate cash from transporting, storing, and delivering energy product ? such as crude oil, natural gas, and propane ? from wellhead to market. That business is a steady, consistent one that generates enough cash for these firms to pay out handsome dividends.

Ferrrellgas has been expanding slowly but surely over the years, acquiring more than 190 smaller companies in order to gain economies of scale in an otherwise-fragmented industry. But with only around 9% of the national market, it has plenty of room to grow!

The other day, for example, when driving home from work, I couldn't help but smile. Because right there in front of me, lumbering down the streets near my home, was a Ferrellgas truck!

Bottom line: This company has expanded and managed its way through 77 years of gas price fluctuations, economic expansions and contractions, and more!

My recommendation: Buy $20,000 worth of FGP at the market.

Dividend Dream Stock #5: A Company That's Flying High on the Back of a Booming Aerospace Market!

Are you the kind of person who spends a lot of time flying? Or passing through some of the country's largest airports? If you are, chances are you've seen just how full planes are flying these days. Or just how much airlines are charging for everything from checked bags to snack boxes. Or just how many shiny new planes are packing gates at major hubs ? all from airlines we barely even heard of a few years ago, mirates, Etihad, Virgin, Spirit, you name it. There's a reason for this: The aerospace industry is in the midst of a major growth spurt. Airplanes are flying near capacity and airlines are earning record amounts of ancillary fees. Meanwhile, the release of newer, more advanced, fuel-efficient aircraft are giving them another reason to expand their fleets. Key gauges of airline demand like revenue-passenger miles and the volume of freight traffic are also signaling good things: They were recently rising at year-over-year rates of around 5%. Boeing's backlog hit a record 5,100 aircraft worth $400 billion at the end of 2013, while competitor Airbus' backlog is closing in on 5,600! The consulting firm Deloitte recently forecast that the aerospace and defense industries will show healthy revenue growth. Plus, the annual level of global production should increase 25% over the next decade to meet burgeoning demand, particularly from Asian and Middle Eastern carriers. All of this means airlines have the motive, means, and opportunity to expand their fleets over the coming few years. What's interesting to note, though, is that many airlines are opting to lease new planes from third-party firms rather than buy them outright. More than a third of the worldwide fleet is now leased, compared with about a quarter of it back in 2000, according to Fitch.

Page

Dividend Dreams: The Best 10 Dividend Stocks to Own Now

That's why I'm gung-ho on Aircastle Ltd (AYR), one of the major aircraft leasing firms. My recommendation: Buy $10,000 worth of AYR at the market.

Mike Burnick

Dividend Dream Stock #6: A Shipping Giant That Can Help Keep Your Income Portfolio Afloat!

Capital Product Partners L.P. (CPLP) is definitely a higher-risk company in the high-yield industry. But the yield you get is juicier because of it.

CPLP's business is shipping. It operates about 35 ships that transport oil, refined products, chemicals, dry bulk commodities, and traditional containers full of consumer and business goods. Formed as a Master Limited Partnerships in 2007, its share price collapsed along with the global economy. But it has been recovering slowly and steadily since the depths of the 2009 recession.

My recommendation: Buy $10,000 worth of CPLP at the market.

4 More Dirt-Cheap, Dream Dividend Stocks to Consider Dividend Dream Stock #7:

Himax Technologies, Inc. (HIMX) is a fabless semiconductor company, provides display imaging processing technologies to consumer electronics worldwide. The company operates through Driver IC and Non-Driver Products segments. It offers display driver integrated circuits (ICs) and timing controllers used in televisions (TVs), laptops, monitors, mobile phones, tablets, digital cameras, car navigation, and other consumer electronics devices.

Dividend Dream Stock #8:

Advanced Semiconductor Engineering, Inc. (ASX) provides semiconductor packaging and testing services in the United States, Taiwan, Asia, Europe, and internationally. It operates through Packaging, Testing, and Electronic Manufacturing Services (EMS) segments.

Dividend Dream Stock #9:

Tsakos Energy Navigation Limited (TNP) provides international seaborne crude oil and petroleum product transportation services worldwide. The company offers marine transportation services to national, major, and other independent oil companies and refiners under long, medium, and short-term charters.

Dividend Dream Stock #10:

Bank Mutual Corporation (BKMU) operates as the holding company for Bank Mutual that provides various financial products and services in Wisconsin. The company offers regular savings accounts, interest-bearing and noninterest-bearing demand accounts, money market accounts, and certificates of deposit, as well as IRA time deposit accounts and health savings accounts for retail and business customers.

Bottom line: There ARE Dividend Dream solutions for today's low yield world. With my help ... and the help of the Weiss Ratings ... you should be able to hitch your wagon to them ? and reap the financial rewards!

Page

Dividend Dreams: The Best 10 Dividend Stocks to Own Now

Mike Burnick

Appendix A: The Weiss Ratings Why I believe you can rely on the Weiss Ratings!

Weiss Ratings provides fair, objective ratings to help professionals and consumers alike make informed financial decisions. Our firm provides "Financial Strength" ratings for banks and insurance companies, and Weiss "Investment" ratings for stocks.

At Weiss Ratings, integrity is number one. Weiss Ratings never takes a penny from rated companies for issuing its ratings. And, Weiss Ratings publishes ratings without regard for institutions' preferences. Our analysts review and update Weiss financial strength ratings each and every quarter, and Weiss stock ratings are reviewed daily so you can be sure that the information you receive is accurate and current ? providing you with alerts of financial changes early enough to do something about it.

Other rating agencies focus primarily on a company's current financial solvency and consider only mild economic adversity. Weiss Ratings also considers these issues, but in addition, our analysis covers a company's ability to deal with severe economic adversity.

Our use of more rigorous standards stems from the viewpoint that a financial institution's obligations to its customers should not depend on favorable business conditions. A bank must be able to honor its loan and deposit commitments in bad times as well as good. Likewise, nonbank corporations must also be able to ensure continuing business even in difficult economic times.

The Weiss Ratings scale, from A to F, is easy to understand. Only a few outstanding companies receive an A (Excellent) rating, although there are many to choose from within the B (Good) category. A large group falls into the broad average range which receives C (Fair) ratings. Companies that demonstrate marked vulnerabilities receive either D (Weak) or E (Very Weak) ratings. So, there's no numbering system, star counting, or color-coding to keep track of.

Weiss Ratings ? Mission

Weiss Ratings' mission is to empower consumers, professionals, and institutions with high quality advisory information for selecting or monitoring a financial services company or financial investment. In doing so, Weiss Ratings will adhere to the highest ethical standards by maintaining our independent, unbiased outlook and approach to advising our customers.

Weiss Investment Ratings

Common Stock Ratings All securities in North America (U.S. and Canada) Approximately 12,000 stocks rated every day

More than 70 years of analytical experience have gone into creating the proprietary formulas behind the Weiss Stock Ratings. Our experts invested more than 23,000 hours creating the formulas and sophisticated computer programming to create stock ratings designed from the ground up to show you where you can consistently find profits.

Page

Dividend Dreams: The Best 10 Dividend Stocks to Own Now

Mike Burnick

The technical aspect of the Weiss Ratings is mind blowing. More than 6,300 data points go into the calculation of the rating for just one stock. Up to 95,000 calculations arrive at the rating for each stock. All to find the "winning" stocks that will help you beat the market over the long haul.

Weiss Stock Ratings Methodology

Most stock rating models are focused primarily on finding the stocks that will provide the best performance in the near term, without sufficient regard to downside risk, especially in cyclical or secular bear markets.

Their top-rated stocks may outperform the market in good times, but usually fail the test of time. Moreover, they fail to adequately evaluate a stock's vulnerability to steep and prolonged market declines, which can often erase all prior gains and more.

The Weiss Ratings stock model is uniquely designed to provide an approximately equal balance between potential upside reward (the Reward Model) and possible downside risk (the Risk Model).

As such, it may underperform some ratings models in bull markets, but greatly outperform over the full market cycle overall.

Weiss Investment Rating Model

The final output of the stock model is a single rating on the standard Weiss scale of A through F, produced by up to eight sub-indexes. Each of the indexes is assigned value points that are weighted and tallied to determine each stock's final rating value. The breakdown of indexes is as follows:

Reward Model

1. Growth Index: Evaluate each stock based on components including sales growth, change in cash flow and measures of growth in earnings.

2. Performance Index: Screen for excess risk-adjusted return and stock price performance over short, intermediate and long term timeframes.

3. ROX Index: Analyze measures of business strength and quality including return on capital and return on equity.

4. Dividend Index: Measure each stock by its dividend-paying ability to reward stocks with higher total return potential.

5. Valuation Index: Assess each stock by traditional valuation measures including price-toearnings and price-to-book value. Undervalued stocks enhance reward potential, while overvalued stocks increase risk.

Risk Model

1. Volatility Index: Evaluate the gain/loss performance of each stock over various timeframes by measuring profit potential compared to downside risk.

2. Solvency Index: Measure stock by traditional balance sheet quality and solvency ratios including debt-to-equity and financial strength.

3. Valuation Index: Assess each stock by traditional valuation measures including price-toearnings and price-to-book value. Overvalued stocks increase risk while undervalued stocks enhance reward potential.

Page

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download