7 Stocks for a High Yield Cash Flow Portfolio

This article has 19 comments:

•  
  Umm, yeah

  Jun 24 10:06 AM
  I own a couple of these. But can you honestly call most of these part of a truly "Conservative&quo... portfolio?
•  
  Vito54

  Jun 24 11:56 AM
  The only comment I would add is that when considering the Canadian trusts, pay close attention to the IRS implications regarding taxes. Most of these Canadian trusts deduct Canadian taxes up front and you need to file additional paperwork to recoup them on the Federal forms. I do agree that solid dividend companies help stabilize a portfolio, but I recently have been leaning towards preferred shares of companies for steady div yields.
  
  
•  
  buyitcheap

  Jun 24 01:29 PM
  Consider also, that these equities may fall in value depending on who wins the next election which may result in the lapsing of the low tax rate on dividends in 2010.
•  
  boubou

  Jun 24 02:04 PM
  I have been running a similar portfolio for retirement income for years and have had no reason to regret it. Shipping co's such as FRO out of Bermuda or the Marshall Isles have no withholdings, and several others such as DSX, ONAV, ATB are worth looking at. The values cycle in a fairly predictable way so they can be aquired in dips which adds to the glee.
•  
  Muddling
  Investor

  Jun 24 06:39 PM

  My Website
  What about Altria (MO) with about 5% yield and Phillip Morris Intl (PM) with yield just under 4%?
•  
  lickety
  split

  Jun 24 10:42 PM
  check dis one out y'all - npf.to on yahoo finance, or newport partners income fund...yielding 19.28 % with a payout ratio of about 85% (yes that means they are generating free cash flow materially in excess of their distributions y'all which they are using to pay back debt and buy back units y'all... they are a buffet style conclomerate with a portfoglio of about 17 VERY HIGH QUALITY Canadian businesses their biggest positions are oil service companies and natural gas service companies and with ramp in natural gas these companies will be minting even more FFO y'all AND ALSO Y'ALL dividend tax coming into play at end of 2010 which gives u 2.5 years to ride this gravy train y'all and for all those fellow canucks out there (that means 'Canadians' to u yankees y'all) when corporate tax kicks in you'l get a full credit against your personal income taxes for an corporate tax paid y'all AND IF YOU GO to their website newport partners income fund you will see a yearly investor conference at the toronto stock exchange in which they make their case y'all for $6+ NAV and with units trading at 3.37 todays close y'all this is truly IMHO one underappreciated misunderstood and underfollowed opportunity y'all AND DID I MENTION INSIDERS HAVE HUGE HOLDINGS AND HAVE ALSO BEEN BIG BUYERS HAND OVER FIST Y'ALL?????
•  
  lickety
  split

  Jun 24 10:53 PM
  oops ticker is npf-un.to on yahoo finance, not npf.to y'all - they also have some low liquidity bonds with 7 to 7.5% yield trading at nice discounts to issue price y'all, with effectve yeilds of 13%+ y'all debt is trading like its distressed and i don't get it y'all
  
  my position for purpose of full disclosure
  long the units hand over fist y'all and also long the series a and series b bonds y'all
•  
  Chemist29

  Jun 25 02:06 AM
  There is withholding on brazilian stocks I think, although it might be different for each company. Does Anyone know? I'm having trouble finding information. Anyways, I own PGH and they withhold 15%, but still worth it (plus unit price appreciaition). good stuff
•  
  truthinvesti
  ng

  Jun 25 12:50 PM

  My Website
  A better idea is UST RAI MO PM KFT
•  
  Warren
  Buffet

  Jun 25 01:24 PM

  My Website
  I've own and traded PGH & PWE oiver the past 2 years. I agree they are consistent dividend payers.
  My original premise was not only for the yield, about 14% for my cost basis...but a play on a lower dollar versus Canadian $ and also the growing demand for natural gas and energy.
  
  The perfect scenario play was with canadian energy trusts.
  
  These stocks (PWE & PGH) in my opinion are still undervalued and not recognized by most investors.
  
  Bottom Line: BUY!!!
•  
  Warren
  Buffet

  Jun 25 01:28 PM

  My Website
  In refernce to the posy:::"What about Altria (MO) with about 5% yield and Phillip Morris Intl (PM) with yield just under 4%?"
  
  I also own JP Morgan/Chase (JPM) yielding 3.95% and it just bought Bear Stearns for 10 cents on the dollar back in March...a gift from the fed!
  
  You have to figure that it will leveage that acquisition in the future and you get a good yield while waiting.
  
  Cap gains & a great yield!
  
  Bottom Line: BUY!
•  
  Warren
  Buffet

  Jun 25 01:42 PM

  My Website
  Also don't forget that with JPM or any other stock...how about using options?
  
  Thats right sell covered calls against your posityion and get some income there too!
  
  Example I sold back on June 6th when JPM was @ $42.15 January 2009 $50 Call Leaps for $1.90 ticker VJPAJ. granted I've owned JPM for several years and have a low cost basis. But that $1.90 equals a 4.5% return @ $42 per share from June 2008 until Jan expiration or 8 months. or a 6.8% yield!!!!
  
  So the dividends plus the option premium toghter come to a 7.13% in 8 months or 10.7% annualized. now figure in the $8 gain from $42 to the $50 strike???
  
  Bottom Line $8 cap gain or +19% plus 7.13% yield from option premium and dividend yield = over 26% total return from June until January 2009.
  
  But wait...that's if its over $50...if not I keep the premium and do the whole thing over and continue to lower my cost basis.
  
  Get the picture!
•  
  jt

  Jun 28 01:22 PM
  The problem with all of those listed above is the fact of the TRUE rate of inflation. It ain't even CLOSE to the one the Bureau of Lying Statistics puts out, and the Fed decided they weren't going to tell us what M3 is starting in March '06...their reasoning...it cost too much--something like $25M/yr, this from the same Mafiosos who roll out of bed on a Monday and bail out their Family Mob banker buddies to the tune of hundreds of $Billions!! There was one and only one reason to stop printing it publicly...yep...24/7 fiat creation...off the charts.
  
  Our CPI isn't even close to 3.5-4%...the CPI was changed during the Clinton administration with all sort of gimmicry added to keep the govt from having to pay out ever-increasing COLAs on their entitlement programs. Using the CPI from Carter's administration and preceding, the CPI now (and even this is conservative) is closing in on 11%. But that doesn't tell you the rate of inflation, which is NOT price increases, but expansion of the money supply, which sooner or later ALWAYS finds its way into prices we pay. M3 is still being calculated privately (see shadowstats.com) and we're nearing 20% annualized (actually the rate over the past 6-9 months has reached closer to 30% during some stretches).
  
  The Point?...unless your return in FRNs..."dollars&q... greater than the rate of inflation, you're losing money in the end. You can hope to be the "least loser" and figure that he who loses the least wins. But that actually only works in theory. Only FRO is reaching that figure at the moment with cap. gains and divies, but the Fed has now made it exquisitely clear for all who can hear, see, read (except, of course, those who b/c of their extremely low IQ and finely tuned sense of self-aggrandizement get themselves elected to positions in the govt) that they will NOT fight to stop inflation, but only to maintain as long as possible their fiat currency hegemony.
  
  Therefore...in all you getting, make sure you take some significant proportion of your earnings and promptly trade in those always more worthless pieces of fiat paper for REAL money...gold and silver coins, bullion...PHYSICAL...i... possession.... Americans may no longer remember, but the world does, that gold and silver always have been and always will be the real money...and when the fiat fraud comes crashing down, as they all have done historically...either have a well oiled wheelbarrow for all your paper money when you come to the grocery store, or have silver and gold. jt
•  
  berberick

  Jun 29 10:29 PM
  sorry Jt ,
  Won't happen , the average person has no clue what a gold coin is worth ! Paper money is here to stay whether you like it or not .
•  
  risk
  manager jeff

  Jun 30 01:12 AM

  My Website
  To "Umm, yeah"; Can I call this a conservative portfolio? I suppose that's a relative question. It's conservative, when compared to the other names in the commodities space such as Coal and Agriculture. Just buy them down, not up. This is a conservative "growth portfolio" with a big payout. Can't have your cake, ice cream, pie and eat it all too.
  
  I like the idea of adding in MO or PM into the bunch, but I'm trying to keep the dividend high. Close to 10%. Perhaps switching out BNS for one of them is a good idea.
•  
  Umm, yeah

  Jul 03 08:56 AM
  Thank you for your response, Jeff!
•  
  gregbinfld

  Jul 10 09:19 AM
  the gas & oil trusts, and shippers, do indeed provide excellent returns, especially for the income investor when compared to puny 3% CD rates. Be prepared however, to do a lot of paperwork at tax time. Shippers may have a return of capital, which is usually announced the day after you send in your tax return. Oil/gas trusts have depletion, costs, and basis calculations, K-1s maybe, or foreign tax recovery work maybe. The small or novice investor who does his own taxes may be in for a real surprise trying to figure it all out at tax prep time. Even the tax prep professionals sometimes get it wrong so you have to know your stuff. It's worth the effort, but it's a lot of effort.
•  
  Malkiel

  Jul 23 05:17 PM
  As per taxes, I think we all know the trick by now that you do this kind of investing on your tax-exempt accounts like your IRA or 401k, where all that paperwork on taxes doesn't matter. For your fun money it doesn't pay to do much of anything other than straight stock transactions (even certain ETF's contain some shocking paperwork tricks when you finally sell shares in a taxable account...)
•  
  write-in
  Ron Paul
  for
  president

  Jul 30 11:32 AM

  My Website
  screw the IRS and do the right thing to the IRS. Do what I and hundreds of thousands of other U.S. citizens are going to do this November 4th. Write-in Ron Paul for president. He is the only candidate for real change. end fiat currency devaluation, end the stupid and robber police force war on drugs, close the borders to illegal immigration, bring our troops home to protect us from our borders and not from some other countries borders. The politicians are going to get a huge wake up call this November when the incumbents wake up to find themselves voted out for years and years of self-serving and equally inept leadership. Do it for your children and do it because it is the rightthing to do. Don't believe me? Just Google Ron Paul and folow some links to see the huge following this man who thought he was dropped out of the race really has. The media and status quo are scared, an independent group of supporters arranged a rally being held at the same time in the same city as the Republican national convention. It is selling tickets like hot cakes and sold half the entire venue of 13,000 in two days. You can also see a running count of fellow Americans fed up and signing up to support him. That number is at 76,000. Just think of all the Americans who have not heard about this site and are still supporters of Ron Paul. Then you can understand the huge actual number of people who will write-in Ron Paul for President this November 4th. If you value the freedom you enjoy and want to keep it, do it.