High-Yield Stocks That Pay Dividends:
5 High-Dividend Stocks That the Prudent Investor Must Own

Claim your FREE copy of High-Yield Stocks That Pay Dividends: 5 High-Dividend Stocks That the Prudent Investor Must Own and receive a FREE subscription to Stocks to Watch.

Please enter your e-mail address:


PRIVACY POLICY

For stocks that pay dividends, it’s the clues to future economic trends that are the keys to anticipating the market.

In an environment of flat interest rates and high risk, stocks with high dividends shouldn’t be taken for granted. We’ll be scrutinizing all of the high-yield stocks in our portfolios to ensure they’re measuring up to the challenges.

Here’s a brief look at some of our favorite high-yield stocks.

High-Dividend Stock #1—
A communications sector darling and among the premier high-yield stocks at 4.5%

From a stocks-that-pay dividends standpoint, during the past 20 years this company has been consistently among the top performers in the communications industry. Its wireless network is America’s best, with industry-low churn of 1.13 percent and rapidly growing profitability.

Money: That’s the critical element for success in the rapidly evolving communications business. And few have more of it than high-dividend stock #1.

That widens the company’s reach and technological advantage with each passing day, and the result is more and more customers flock to high-yield stock #1 in the industry’s highest margin segments. Rivals are increasingly forced to compete for lower-margin segments.

This rock-solid dividend stock expects margin rebounds in 2013, as new customers use more services and cost-cutting take effect. If the company does manage to improve these margins in coming quarters, the stock should realize substantial gains in 2013. We rate this stock a buy - sign up for your free report for the name of this stock.

High-Dividend Stock #2—
The bet almost no one is making right now

Buying high-yield utility stocks after dividend cuts is a time-tested strategy for big long-term gains. And we expect nothing less from here for stocks-that-pay dividends pick #2. 

The $700 million pick #2 saved from the dividend cut allows the company to effectively wait out current power-price weakness without sacrificing its ability to profit from the inevitable recovery.

The company now controls 20 percent of US nuclear generating capacity thanks to a solid acquisition. Its plants had another stellar year, running at 93 percent of capacity.

And unlike the natural gas-fired power plants they compete with, the nukes have a record of stable operating and fuel costs spanning decades. And they emit no carbon dioxide (CO2).

An Obama administration tax on CO2 or tighter regulation of emissions would boost the cost of gas-fired power overnight. So will eventual export of North American liquefied natural gas, coupled with surging demand at home.

And the likely result will be power prices back at normal (higher) levels as well as a gigantic lift to High-Dividend Stock #2's margins on power sales.

That’s a bet almost no one is making now. But it’s plenty of reason to own this stock, particularly now that the company has resolved near-term financial pressures. Simply enter your email below to uncover this pick along with four other high-yield gems.

Claim your FREE copy of High-Yield Stocks That Pay Dividends: 5 High-Dividend Stocks That the Prudent Investor Must Own and receive a FREE subscription to Stocks to Watch.

Please enter your e-mail address:


PRIVACY POLICY

High-Dividend Stock #3
Energy generator with a competitive edge

Stocks-that-pay dividends pick #3 is among the best publicly traded master limited partnership (MLP) in the US, and boasts a diversified business mix that includes natural gas pipelines, offshore production platforms, oil pipelines and even tank barges.

Roughly 70 percent of pick #3’s revenue comes from pipelines and other assets that generate fees regardless of whether they operate at full capacity. These fee-based businesses limit sensitivity to commodity prices and broader economic conditions.

The primary driver of growth going forward is capital spending, and it put $2.9 billion of new projects into operation in 2012. It has $2.4 billion more set to finish up in 2013 and another $4.8 billion underway for startup in 2014 and the first half of 2015. That’s a huge support for distribution growth, which in turn looks set to come in between 6 percent and 7 percent in 2013. That will keep our buy target rising going forward. Enter your email below for complete details.

High-Dividend Stock #4—
An underappreciated High-Yield Partnership with a unique business model 

Stocks-that-pay dividends pick #4 owns and manages 890 million tons of coal reserves primarily in Central Appalachia, though the firm’s portfolio also includes producing properties in Northern Appalachia, the Illinois Basin and New Mexico.

Pick #4 doesn’t mine coal; instead, the master limited partnerships leases coal-producing properties to coal mining firms in exchange for royalties. These 10- to 15-year agreements usually involve a guaranteed minimum plus a fee based on the value of the coal mined on the partnership’s properties. This approach limits the MLP’s downside exposure to fluctuations in coal prices and generates a reliable source of distributable cash flow (DCF).

A greater reliance on fee-based businesses and less dependence on commodity prices appears to have emboldened management to translate that growth and balance-sheet strength into distribution growth, even as the pace of asset growth continues.

Claim your FREE copy of High-Yield Stocks That Pay Dividends: 5 High-Dividend Stocks That the Prudent Investor Must Own and receive a FREE subscription to Stocks to Watch.

Please enter your e-mail address:


PRIVACY POLICY

High-Dividend Stocks #5—
A high-paying dividend stock with a rising dividend

Today high-dividend pick #5 is an invest-to-grow story. The company boasts an investment-grade credit rating and is reliably growing earnings and dividends.

Last year was the 10th in a row the company met or beat its guidance for earnings excluding one-time items. The primary catalyst for earnings has been utility system investment supported by the state’s regulators.

The company plans $7 billion in additional spending through 2017. Areas of focus include efforts to strengthen the power grid and reduce waste, renewable energy, environmental compliance, and building a new natural gas-fired power plant. All of these initiatives enjoy support of local regulators. And this dividend jewel is successfully limiting the impact on customer rates with operating cost reductions.

The formula for growth is simple: Utility capital spending plus regulatory support equals higher earnings. And these numbers indicate clearly that–despite a less-than-roaring economy–high-dividend pick #5 is executing on it. Sign up for your free copy of this exclusive special report to uncover the name of this stock.

To get the full details, request your free copy of High-Yield Stocks That Pay Dividends: 5 High-Dividend Stocks That the Prudent Investor Must Own.

To the future of investing in high-dividend stocks,


David Dittman
Chief Investment Strategist,
Utility Forecaster
Investing Daily 
7600A Leesburg Pike
West Building, Suite 300
Falls Church, VA 22043


Claim your FREE copy of High Yield stocks that Pay Dividends: 5 High Stocks that the Prudent Investor Must Own and receive a FREE subscription to Stocks to Watch.

Please enter your e-mail address:


PRIVACY POLICY

Copyright 2014 Investing Daily, A Division of Capitol Information Group, Inc. We value your Privacy.