September 22, 2011
My Favorite Stock
Written By Chloe Lutts
Dick Davis Digest Editor Chloe Lutts discusses her favorite stock: Globe Specialty Metals (GSM), the leading maker of silicon. Chloe likes Globe because of its good chart, nice story and the fact that it’s been recommended by several of the Dick Davis Digest contributing experts.
Chloe Lutts is the editor of Dick Davis Investment Digest and Dick Davis Dividend Digest, and the third generation of the Lutts family to join the family business. For each Digest, Chloe reads hundreds of investment newsletters to select the strongest ideas for her readers. Prior to joining the Dick Davis Digests, Chloe was a financial reporter for Debtwire, a division of the Financial Times, covering fixed income, and before that, she reported on global debt markets for Institutional Investor. She also has previous experience at Cabot, writing about growing momentum stocks for Cabot Top Ten Trader and high-potential small companies for Cabot Small-Cap Confidential. She holds a B.A. in International Relations from Brown University, and also studied in Beijing and Paris.
~~~~~~~~~~~~~~~~~~~~~~~~~
My Favorite High-Yield Stocks for 2011
If you give me the next 7 minutes, I can guarantee you a portfolio yielding up to 14.4%
Dear Income Investor,
How would you like to have more than 200 highly paid investment analysts working for you … digging through every stock market in the world … to unearth overlooked high-payout gems yielding up to 14.4%?
You would?
Great, because we’ve just released our top high-yield picks for 2011 … and these 22 high-yielding gems are culled straight from the 200-plus investment advisories we follow here at Dick Davis Dividend Digest.
Why should you care?
Because we only do this once a year, and of the 26 stocks on our list for 2010, 23 were up by the end of the year—by as much as 291% each. Meanwhile, some of the dividends more than doubled.
Let me tell you briefly how we operate here at Dick Davis Dividend Digest. Our team scours more than 200 financial advisories cover to cover, every month. We pick out the most compelling 25 to 30 income recommendations and give them to our subscribers in a compact 12-page letter.
This way, you get the favorite picks of the top income experts in America all in one convenient financial intelligence briefing.
That’s our job, and we do it well. We don’t take advertising. We don’t get a nickel from the analysts who appear in our pages.
We make our money from subscription payments and nothing else. And we haven’t stayed in business more than 30 years without making money for our subscribers.
They’re saving some pretty good money, too. These 200 newsletters would cost $32,000 a year—if you subscribed to them all. Luckily, you don’t have to.
These Aren’t Your Father’s Stocks and Bonds
You’ll find a lot more than old-fashioned common stocks in Dick Davis Dividend Digest.
You’ll see the highest-paying municipal and corporate bonds, mutual funds, ETFs, MLPs, even exotic securities you may never have heard of before, like BDCs, ELKs and a lot more.
Let’s Take a Peek at This Year’s Picks
We’ve compiled these 22 income securities—stocks, trusts, ETFs and mutual funds—into a single report that I’d like to send you called The Top 22 Cash Cows for 2011.
Here’s a peek at a few of our favorite high-income investments for 2011. You’ll get all 22 in your FREE report
** With a 42% return over the last six months, this Asia-based phone company is a leader of the telecom pack. The company is poised for further growth, as it leverages agreements with other aggressive telecom firms in the region to offer value-added wireless services to China’s booming consumer market. Yiannis G. Mostrous, Global Investment Strategist
** With a current yield of over 9%, this natural resources and income fund shows that everyone, not just the rich, should own some gold—as well as hold a stake in the booming energy sector. The commodity bull market hasn’t run its course, not by a long shot, but the diversification offered by this fund offsets the risk and provides a handsome dividend, to boot. Curtis Hesler, Professional Timing Service
** Greece is known for shipping magnates, but this Athens-based company leads the fleet. An international operator specializing in the transportation of dry bulk cargoes and containers, the company is poised to rack-up outsized growth as soon as the shipping and container industry turns around. In the meantime, investors can enjoy the stock’s very buoyant 10.40% yield. Bill Mathews, The Cheap Investor
** Pharmaceutical companies tend to be a staple of income investment portfolios; the performance of this innovative drug maker shows why. Boosted by robust sales of its treatments for arthritis and other common inflammatory diseases, the company’s stock has risen a healthy 10% since the beginning of 2011. Moreover, the company increased its dividend payout 9%, marking the 39th consecutive year of dividend increases. With a dividend yielding 3.6%, this drug stock is an attractively valued buy. Ingrid R. Hendershot, Hendershot Investments
** This Canadian utility continues to build value, through shrewd acquisitions and the development of innovative “biomass” electricity generation. A time-proven 7% yielder, the company isn’t resting on its laurels: It’s rapidly investing in 20 power plants that will soon boost the company’s generating capacity by roughly 143%. Roger Conrad, Canadian Edge
** Here’s a Europe-based international bank that’s not just surviving the overseas debt crisis, but thriving in spite of it. A lot of its European counterparts are hurting, but this bank isn’t one of them. With a strong return on equity and a comparatively healthy capital ratio, this undervalued bank sports a nifty dividend of 6.7% and still has plenty of additional room for growth. Russ Kaplan, Heartland Adviser
This just scratches the surface of The Top 22 Cash Cows for 2011. Instead of paying $49 for this report like other investors, you’ll receive a complimentary copy as soon as we receive your instructions.
You can’t buy this work in a bookstore. You can’t even buy it by mail. But it can be yours free when you take out a 12-month trial subscription to Dick Davis Dividend Digest at the rock-bottom price of $97.
Order now!
As you can see, most of the companies you’ll find in Dick Davis Dividend Digest are pretty simple. They don’t get a lot of attention—they simply grow steadily and make solid profits every year.
Granted, they are not as fun to talk about as some biotech outfit whose stock could triple overnight if the FDA gives it the nod. But we’ll leave those “investments” for someone else. We’ll stick with nuts-and-bolts companies that you can get your hands around. We are into buy and hold, not buy and hope.
Keeping things simple can work wonders for your portfolio. In 2001, while most stock indexes dropped 10% to 20%, wiping out more than a trillion dollars in investors’ wealth, dividend-paying stocks were up, beating the S&P 500 by nine percentage points.
The Great Recession of 2008-09 was a frightening time for the world’s investors; the after-effects continue to cause uncertainty. When Wall Street melted down and the market took a sickening plunge, holders of dividend-paying stocks enjoyed the sweet gravity-defying sensation of seeing their portfolios rise while those all around them sank.
You suspected it and you were right …
There IS a better way to generate generous income from your portfolio without settling for today’s miserly CD and money market yields.
At Dick Davis Dividend Digest, we’re racking up solid profits in this tough market by focusing on companies with solid fundamentals that are generating consistent profits in basic industries.
Every pick in our letter offers the two things we cherish most: A long history of honest-to-goodness growth (as opposed to contrived growth engineered by accounting fictions) and a generous record of dividends. These are exactly the sorts of stocks that have allowed us to watch our portfolios get fatter, while those of so many other investors are shrinking.
Plenty of the picks in Dick Davis Dividend Digest yield above 10%. Invest in these cash cows and you’re beating the stock market’s historical total return in dividends alone!
Dividends don’t get much respect from most investors. That’s a big mistake.
Dividends are a sign of financial strength, of a real business making real profits.
Dividends not only require executives to use capital efficiently, they also send a clear message that management is putting shareholders first and treating them right by paying them the profits they deserve as co-owners of the business.
What’s more, a steady stream of dividends indicates that a company is on the up-and-up and keeps straight books. You can hide a lot of bad news with dodgy accounting, but you can’t fake dividends.
A key reason dividend-paying investments have clobbered the competition is that they fare so much better during bear markets. Over the three tough years of 2000-2002, S&P 500 stocks that paid dividends went against the grain and rose 10.4%. Meanwhile, the non-payers lost 33.1%.
Now that Washington has retained the Bush-era tax breaks, there has never been a better time to load up on high-yield stocks.
By some estimates, investors will pocket an extra $70 billion over the next two years thanks to these low rates. Tax rates could have shot up to 39.6%. Instead, they are still down at 15% for qualified dividends.
This news couldn’t have come at a better time. After shepherding their resources during the recession, corporations are now flush with cash. So a wide range of companies are boosting their payouts fast …
Consider our 2010 Dividend “Hall of Fame”:
** Wal-Mart raised its quarterly dividend by 11% in March.
** Colgate-Palmolive raised its quarterly dividend by 20.4% in February.
** Walgreen raised its quarterly dividend by 27.3% in July.
** McDonald’s raised its quarterly dividend by 10.9% in September.
** Kimberly-Clark raised its quarterly dividend by 10% in March.
** Coca-Cola raised its quarterly dividend by 7.3% in February.
When a company keeps raising its dividend this fast, your dividend check can eventually overtake the original price you paid for the stock!
For example, if you had put $25,000 into Nationwide Health Properties back 20 years ago, you’d now be getting $28,343 in dividends every year—more than your initial investment!
A Special Offer for the Next Seven Days Only
I’d love to show you more of what we do here at Dick Davis Dividend Digest.
And if join us today, I’ll rush you our new special report on our Top 22 Cash Cows for 2011.
I’ll also cut the price by 75% for the next seven days. That gives you a whole year of service for just $97.
Normally, Dick Davis Dividend Digest costs $397 per year. But if you haven’t subscribed before, you can join the country’s best-informed income investors for a quarter of the price.
It’s like getting the first nine months of your subscription absolutely FREE.
In addition to your FREE report, Top 22 Cash Cows for 2011, here’s what else you’ll get:
** 12 monthly issues of Dick Davis Dividend Digest. Each issue gives you more than a dozen concise write-ups on new income investment ideas—income stocks, growth and income stocks, mutual funds, ETFs, bonds, and more, all gleaned from more than 200 newsletters.
** Income Insights with the latest market analysis, trend forecasts and strategic assessments from the country’s most successful investment minds, such as Robert Carlson of Retirement Watch, who explains how changing consumer spending habits will affect the economic recovery … to name just one.
** The Spotlight Investment—this is the single most compelling income stock idea each month, often shared by several of the 200-plus experts we survey.
** Frequent follow-ups, as we update you on earlier recommendations.
** At-a-Glance List of all the income ideas reported in each issue, including their 52-week low-high prices, recent price, annual dividend amounts, yields and more.
** Unlimited access to our members-only Web site. You can review the past 10 years of issues … and get details on our up-to-the-minute “Stock-of-the Day” tip.
** Investment of the Week, our FREE email newsletter containing one top recommendation from the best financial minds in the business each and every week.
You Won’t Just Beat Other Yields—You’ll CRUSH Them
Look around you at the sorry choices income investors face today.
You’re lucky to find a CD paying a puny 2%. And that’s before inflation chops off your return at the knees.
Bank accounts are a joke. The last time I looked, money market funds were averaging a laughable 0.07%. To double your money at that rate it would take 600 years!
Government bonds are hardly any better. Ten-year Treasury bonds pay just 3.3%. Even corporate bonds only pay about 4.5%.
Compare that to the latest issue of Dick Davis Dividend Digest. In it you’ll find yields of 10.1%, 10.3% and 14.4%. I suggest you send for that issue right now and get the ticker symbols of those double-digit yielders.
You Don’t Like It, You Don’t Pay
I don’t want any unhappy subscribers. So here’s what I propose:
Try Dick Davis Dividend Digest for 60 days. If you’re not happy pocketing yields of 10%-plus, just cancel within your first 60 days for a full refund.
During your 60-Day No-Risk Trial, you will receive dozens of top income ideas to get your portfolio pumping out cash every month. Use those two months to follow the recommendations—either on paper or with real money. Then decide if it’s right for you. It’s your choice… and there’s never any pressure.
This means you can read the next two issues for FREE. If you’re not 100% delighted with our selections of income recommendations, then call us and cancel. You’ll receive 100% of your money back. No questions asked.
With your money-back guarantee, there’s no reason to delay. Remember, the taxes on dividends are low now but they could jump back up in two years. So grab as much of this low-tax income as you can right now.
Even if you cancel within 60 days for a full refund, you may keep your first two issues, anything you download from our Web site and your own copy of Top 22 Cash Cows for 2011.
So let’s get started. If you like the idea of watching a never-ending stream of cash flow into your portfolio, there’s no better place to start than Dick Davis Dividend Digest.
Wishing you years of safe income ahead,
Chloe Lutts
Editor, Dick Davis Dividend Digest
P.S. I can only offer this 75% discount for the next seven days. Let me hear from you within 72 hours to make sure you get the top 22 high-yield picks from the country’s most successful investment advisors. Enjoy 75% Savings, a FREE Special Report and a 100% Money-Back Guarantee. Order now!