The High Dividend Stock Investor's Collapsing Dollar Survival Guide, Part 4

1. MARKET STATUS

Before ever considering investing in stocks, we must always first look at the overall market, since almost all stocks follow the major indices.

A. The Short Version

As stocks are still trending down, invest only funds not needed for the near term expenses. While there may be rallies, even multi-week or month ones, the fundamental problems remain and there is no credible plan to fix them at this time. Markets are news driven and thus even more unpredictable than usual.

While the markets remain oversold by traditional measures, few seem prepared to take any multi-day rally seriously enough for it to get past near-term resistance before selling starts anew.

Nouriel Roubini continues to see a minimum of another 20% drop at least, for reasons mentioned in my last installment of this series, Part 3. Moreover, there’s widespread belief that this is not a ‘normal’ downturn, but one of historical proportions (though not yet Great Depression magnitude) for which the usual metrics may well not apply. Typically, when most believe “this one’s different,” it’s a classic bottoming sign. However, a number of sentiment levels that usually suggest bottoming have been decisively shattered and remain so.

B. Ramifications for High Dividend Stock Investors

In sum, we’re still in in a near term trading range, with the overall trend continuing down. Continue to invest only with funds allocated for longer term investment. What you buy now is likely to go lower.

1. Balance Current Income vs. Catching a Better Price and Yield

You need to strike a balance between holding cash equivalents (and earning virtually nothing) while hoping to catch stocks near a bottom (which few succeed at doing), and getting 7-16% returns for the coming years on good businesses whose stock prices should recover.

2. Partial Near Term Simple Hedging with Ultrashort ETFs

As mentioned in Part 3, consider investing small portions of your portfolio in the following Ultrashort ETFs for a short term hedge, but only when the market is in rally mode and they hit the below mentioned buy levels.

• UltraShort S & P 500 Proshares (SDS) – Buy under $75, Strong Buy under $65.
• UltraShort Financials ProShares (SKF) -- Buy Under $141; Strong Buy below $125.
• UltraShort QQQ ProShares (QID) – Buy Under $55, Strong Buy under $50.
• UltraShort Real Estate ProShares (SRS) – Buy Under $58, Strong Buy under $48.
• UltraShort Russell2000 ProShares (TWM) – Buy Under $75, Strong Buy under $65.

The idea is to use them as a simple hedge and hold them through the next down stage, then sell them whenever the next rally starts. Unless you get the exact top of the rally (unlikely), be prepared to take initial paper losses with these as the market continues to rise after you buy them. Again, few are good at market timing, so only allocate a small portion of your portfolio to this kind of trading. They are not ideal long term shorts on the market due to their structure (the explanation of which is beyond the scope of this article).

If you look at a chart for these, you’ll note my buys are conservatively low. As the past few months have shown, any glimmer of positive news brings stampeding buyers who have been waiting to buy or cover their short sales. Lots of cash on the sidelines provides lots of fuel in the tanks for a rally.

Thus Ultrashorts can plummet fast, so you only want to buy them at strong support. Then, if that support fails, you’ll know quickly and can get out before taking a big loss. Consider placing sell stops no more than 10% below the Strong Buy levels to protect your capital.

2. AMERICAN HIGH DIVIDEND STOCKS WITH A DOLLAR HEDGE

In Part 3 of this series we gave an overview of the best sectors and stocks for high yields that also provide a hedge against the U.S. Dollar. Not surprisingly, these were international stocks.

Here in Part 4, we survey the second tier, U.S. companies that earn in USD and thus lack a large degree of USD hedge. However, they have strong businesses dominating vital commodities or services. That should allow enough pricing power to provide at least partial insulation against dollar inflation.

It’s also worth repeating that while the dollar is in trouble, it’s hardly assured that it will do worse than other currencies or that it will lose its role as the primary international currency.

In addition, while my focus thus far has been to hedge inflation, there is a distinct chance of the opposite happening, deflation, a downward spiral in prices. That would reduce earnings and ultimately many dividends, though it’s unclear whether dividend cuts would be greater than the increased purchasing power of those dividends. What is clear is that unlike many other forms of investment, we’d be sitting with cash generating assets while cash is becoming more valuable.

1. Communications

Yes, communications companies depend on credit markets for their substantial capital spending needed for growth, and thus are sensitive to tight credit. Also, to the extent that their revenues are regulated, they are vulnerable to imposed limits on those revenues. That will be discussed in depth at a later time.

However, the dominant players provide critical services and will have the pricing power to prosper in the long run. The best communications companies have already shown that broadband and wireless service growth can more than compensate for declining landline revenues. Because these services can increase efficiency, they are arguably recession resistant. Below are two pairs of telecoms that represent two valid ways to play this too-vital-to-fail industry for income.

Two Giant Telecoms: The more conservative approach.

• AT&T Inc (T): Buy under 24, Strong Buy under 20. Yield 7%.
• Verizon (VZ): Buy under 28.5, Strong Buy under 26. Yield 7.5%.

The most dominant communications companies, they have shown the management and financial strength to benefit from continued growth in broadband, wireless and cable networks (internet, cable TV) usage to more than balance problems in their traditional landline business. Dividends are around 7%, split your position between them.

Note, these dividend yields are normally at far more modest levels typical of such blue chip low risk companies.

Two Rural Telecoms: The higher dividend approach, with solid fundamentals to sustain and grow these dividends. Some of the safest 12% plus dividends, plus potential for substantial capital gains as the current fear and risk premium subsides and bids up the share prices. They carry higher risk, for they lack the size, capital, and too-big-to-fail qualities of the T and VZ.

• Otelco (OTT): Buy under 9.5, Strong Buy under 7.5. Yield 21% prices in a dividend cut, though financials are solid. A rural phone company with reliable cash flows, buy back of debt and stock, successful up-selling of broadband services and cost cutting.
• Windstream Corp (WIN): Buy under 8.25, Strong Buy under 7.25. Over 15% yield and the solid fundamentals to maintain the dividend, even under worst case projected 2009 revenue losses of up to 4%. Like OTT above, its plan is to cut expenses, increase up-selling of broadband services (half of its residential customers don’t yet have broadband), and improve economies of scale.

2. Energy infrastructure MLPs – Distributions Steady or Growing

All the below offer yields currently above 8%, which are backed by prospering businesses with reliable cash flows.

Also, as noted in my earlier articles, Energy Infrastructure MLPs: Among the Very Best High Dividend Stocks and Top 10 Energy Stocks..., many investors have wrongly believed that revenues of these energy distribution and storage companies are directly tied to energy prices. In fact most revenues come from simple volume moved or stored. Thus share prices have been unfairly reduced both by market sentiment and declining energy prices. The good news is, that means those already generous yet stable yields have gone even higher. Six of these have actually raised their dividends in the past year.

1. Buckeye Partners (BPL): Buy under 41, Strong Buy under 36. Raised dividend 6% over the past year. Yield over 10%.
2. Enterprise Products Partners (EPD): Buy under 22.5, Strong Buy under 20. Raised dividend 6% over the past year. Yield over 11%.
3. Energy Transfer Partners (ETP): Buy under 36, Strong Buy under 32. Yield 11%.
4. Kinder Morgan Energy Partners (KMP): Buy under 49, Strong Buy under 46. Raised dividend 14% over the past year. Yield over 10%.
5. Linn Energy Partners (LINE): Buy under 16.5, Strong Buy under 14. Yield 19% prices in dividend cut though unclear if any likely near term.
6. Magellan Midstream Partners (MMP): Buy under 32, Strong Buy under 30. Raised dividend 8% over the past year. Yield 11%.
7. Nustar Energy (NS): Buy under 46, Strong Buy under 43. Raised dividend 7.4% over the past year. Yield over 10%.
8. ONEOK Partners (OKS): Buy under 45, Strong Buy under 42. Raised dividend 5.3% over the past year. Yield 12.6% though predicts about 25% revenue cut in ‘09.
9. Sunoco Logistics Partners (SXL) :Buy under 49, Strong Buy under 43. Yield over 8%.
10. TEPPCO Partners (TPP): Buy under 23, Strong Buy under 20. Yield over 14%.
11. Tortoise Energy Infrastructure Partners (TYG): Buy under 20, Strong Buy under 16. Yield over 11%.

3. Coal MLPs

In addition to a depressed overall market and energy prices, coal is not an especially clean fuel source and President Obama has specifically warned utilities not to build new coal fired plants. Nonetheless, coal demand is not fading anytime soon, and is more likely to grow due to lack of alternatives and improved environmental technologies, even under the current economic and political climate. Coal prices and the below stocks will soar as energy recovers, or if events in the Middle East or elsewhere make energy imports more problematic.

• Alliance Resource Partners (ARLP): Buy under 26, Strong Buy under 22. Yield over 11%.
• Northern Resource Partners (NRP): Buy under 20, Strong Buy under 16. Yield over 11%.
• Penn Virginia Resources Partners (PVR): Buy under 13, Strong Buy under 9. Yield over 19%.

4. Other Sector MLP

• Terra Nitrogen Company, L.P. (TNH): Buy under 105, Strong Buy under 95. Yield over 11%. A rare income play on the long term growth in fertilizer demand. Because it only trades a bit over 100,000 shares per day, its price can be very volatile, so don’t chase it. Like any low volume stock, it’s a good stock to leave a low priced order in that can get hit when a few big shareholders need to sell.
• StoneMor Partners (STON): Buy under 13, Strong Buy under 11. Yield Operates Cemeteries, aging population keeps demand alive and growing.

5. Utilities

All of the below are classic cases of blue chip companies with formerly modest blue chip style dividends beaten down mostly due to wholesale selling across the markets. While they remain at 10 year lows, their dividends, while not huge, are now high enough to actually leave you something after real inflation and taxes. While major economic downturns will slow down their growth rates, things need to get very bad before their dividends get cut. Also, to varying degrees, their revenues are regulated, and thus depend on cooperative local and state governments. Overall these have been good, but a prolonged and severe recession could put politically sensitive regulators in a stingy mood.

• Dominion Resources Inc. (D): Buy under 30, Strong Buy under 26. Yield over 6%.
• Duke Energy Corp (DUK): Buy under 14, Strong Buy under 12. Yield over 7%.
• Progress Energy (PGN): Buy under 33, Strong Buy under 28. Yield over 7%.
• Southern Company (SO): Buy under 30, Strong Buy under 27. Yield about 6%.

3. Conclusion, Disclosure & More Info

In Part 1 we looked at the current market, and the case against the US Dollar.

In Part 2 we reviewed the current market, the case for the USD, and the key criteria that make a high dividend stock a USD hedge.

In Part 3 we briefly described the best sectors and listed specific recommendations that fit these criteria. Thus we saw a listing of the best high dividend stocks outside of the U.S.

In Part 4 we’ve looked at some of the best high yield dollar hedges among the U.S. stocks.

The coming articles will examine individual categories and stocks in greater detail.

Disclosure: I have positions in most of the above mentioned investments.

Comments

[Conan the B...:]

Will Oil/Nat gas be higher in 2010 than what it is now?

If higher, I own all of the following in the sector: CQP, TNK, WMZ, MMR(cummulative convertible PFD, purchased today), and of course the following CanRoys currently on Life support: HTE,PVX and PWE.

Off the beaten paths, with extreme yields on some. Fixed rates of return on some. Their future is aligned to Oil.

Outside the Oil Patch: BAC-px(Cap trust Preferreds fixed but thats the point for me) and MHI TAX Free Monthly of around 10% just raised to 7.5 cents from 7 cents.

I'm listing them because you haven't.

Due Diligence is a "must be done".

CQP's payout is good for the rest of the year only, TNK's payout will probably go lower but it has been structured to payout almost 100% of its earnings. WMZ's payout has a minimum built into its structure.

I've done my own DD and believe the returns are worth the risks. I haven't shoved all of my money into a smaller selection because There are Risks.

There are many more Literally floating around, like PGF but you can't buy everything.

Good luck everyone, I believe this Market is providing the Income Opportunity of a lifetime.

Mar 12 11:00 AM

[notsosmart:]

better be very selective & careful.it may pay to wait. this is not the bottom in my opinion & my opinion is as useless as all the talking & writing heads all with a agenda.

Mar 12 12:04 PM

[Alan Young:]

A lot of good ideas here.

However, it's not wise to rely on specific price support levels for leveraged ETFs, especially index-inverters like SDS, because the baseline is reset daily. It would make more sense to take signals from the index itself for when to buy or sell the inverse fund.

Mar 12 12:50 PM

[whisperonth...:]

Although the MLPs and partnerships require additional work at tax time, I discovered that they also increased my tax refund this year. Maybe that was because I was lucky and the ones I had didn't lose a lot, or maybe it was because I got in while they were down a lot. We'll find out next year. If someone has had a different experience, I'd be interested in hearing it.

Mar 12 03:20 PM

[The Little ...:]

Under normal conditions many of the stocks discussed would be wise investments. Today buying any of these is equivalent to tossing the dice. In my opinion only those who can afford to lose and who have a long time horizon-over 2 years- should buy right now. Except for brief rallies the bear market continues, and the economy slips further. This recession more than others is proving that a falling tide lowers all boats. It is likely that many of the fat dividends mentioned will be cut.

Mar 12 06:45 PM

[Universal H...:]

A minor point: (TYG) is not an MLP itself, but a closed-end fund that invests in energy infrastructure MLPs. The correct name is "Tortoise Energy Infrastructure Corp."

Mar 12 07:05 PM

[Big K:]

Finally, someone who gets it and gives advice we can use! Thanks, Mr. Wachtel.

Mar 12 10:10 PM

[Conan the B...:]

notsosmart: your opinion is valuable because it expresses caution.

Take my investment in the MMR PFD, The chairman of the board of Freeport Mcmoran Copper and Gold is the Co-chairman of the Board of MMR. MMR was a spin off from FCX many years ago. I trust his acumen. There are only 1.6 million outstanding.

TNK is majority owned by TK which ships 10% of the World's oil.

You do your DD, the best you can but when you are unsure what will survive? well I use the shotgun approach for now, next year I could have a lot of losses to offset my income but this year my income will be about 20% on the investments made above.

The PGF has potential but I do not trust it enough to buy it, Yet. The chart really, really sucks.

BTW, BRK has lost its AAA rating, partially because Buffett has issued some 250 derivatives contracts worth around $67 Billion. So much for being careful.

Mar 12 11:30 PM

[Delojozafado:]

I will now put in a higher limit for VZ closer to $36 than $25?

I recently added 300 (EROC) Eagle Rock post the ex date, a producer MLP, my target is $7 against my cost of $4.45. It is "junk" but if oil should move to a new high over $52... EROC has given their investors the bird alright. So far they have maintained their "perhaps" unsustainable distributions.

While I own no (TYG) I have found the (BSR) (KYE) and (MTP) both to be working in the last 3-4 months as trading vehicles. KYE has issued press releases confirming their intentions on a minimum target for distributions. I prefer the KYE to the KYN in terms of getting a ~15% exposure to the Can-roys. I have also been mugging up on (ENY) as the Loonie slides below .80. ENY is currently 70% in CanRoy O&G shares in their oilsands-Canroy index mix. ENY gets back to +$11 on $55 oil and that effect driving the Loonie back to .82-.84. MTP continues to sell at a discount. You could still get KYE at a discount last week. That is what makes it such a great trading vehicle. KYE is something to take a little off the table at +$14 where it generally exhibits a premium. BSR is another MLP, no K-1 no UBTI issues investment. A great buy and yield below $22 and time to off load a little over $25. For weak dollar plays there are the non O&G Loonie beaten Trusts still paying out. Chemtrade (CGIFF)pulp and fertilizer chemicals, Bird Construction (BIRDF) general consrtruction but concentrated in the oil,gas, and oil sands infrastructure business. Possible benefactors of trans-Alaska Nat gas pipeline project as well as 2010 Vancouver/WhistlerBlac... Winter Olympics. (GLHIF) Great Lakes Hydro hydrology is best in 2nd qtr. Record profits and production in 2008. New generating capacity that just became accretive in Feb. The Loonie is going to reassert itself on the back of the worlds best managed economy with the worlds strongest banking system. We note the Chinese grumbling and the Ten year note tanking.

I would just add a couple international integrated issues as well. i am holding some BP and might add to it if it drops below $33. The REP-PA went Ex uyesterday. Inclusive of the distribution it has had a monster move higher the last few days off the $16.85 where I added shares last week. These internationals will of course benefit from the US dollar weakening. The IRR Closed end fundd is also something I am targeting but still do not own.

I do own the coal MLP rich closed end fund BGR. Iron ore prices have moved higher in China as of late. Met coal is the best and you can ~speculate~ once again in Canada in (GACHF) Grande Cache and (HLSRF) Hills borough getting those MT s of Met coal out of the ground and to market. ~Apparently~ their hedges are good enough to sustain their businesses until the next big upturn in steel.

In the utilities you can return to (GLHIF) or perhaps dabble in the tax advantaged/disadvantag... stapled units of ATPWF Atlantic power. Some what speculative and perhaps some debt issues. Atlantic power has their debt and distributions in Loonies. An income/dividend scheme avoids Can with holding but incurs US bond income tax. ATPWF has their generating and grids in the US and may capture some infrastructure stimulus benefits. I own them both and have recently added the beaten down (AES-PrC). The AESPC had a monster move higher yesterday on the weakening US dollar. They are profitable enough to be able to pay their debt obligations that were substantially retired and/or restructured in 2007-2008. (HNP) is coming up on their annual EX date. I have not owned these shares as of late but they make a good trade between $26 and $32 with the ex date for the full year distribution looming in a few weeks. With it's expansion into the Nat gas pipeline service the Empire District Electric common looks ~OK~ to me with it's generous yield. (EDE) a great payer but more likely a takeover candidate at this depressed valuation.

Mar 13 05:44 AM

[Cliff Wachtel:]

I agree. The only question is how each investor chooses to balance between retaining cash for further likely declines vs locking in high returns from firms with stable divs now. Alternatively, as you suggest, one can go after some of the canroy energy producers. The risk is continued decline in energy prices, and thus in stock prices and possibly dividends and capex. The reward is that when prices recover, returns will be massive. Only a question of time.

Since many of these are thinly traded, they will move very fast.

On Mar 12 11:00 AM paultaut wrote:

> Will Oil/Nat gas be higher in 2010 than what it is now?
>
> If higher, I own all of the following in the sector: CQP, TNK, WMZ,
> MMR(cummulative convertible PFD, purchased today), and of course
> the following CanRoys currently on Life support: HTE,PVX and PWE.
>
>
> Off the beaten paths, with extreme yields on some. Fixed rates of
> return on some. Their future is aligned to Oil.
>
> Outside the Oil Patch: BAC-px(Cap trust Preferreds fixed but thats
> the point for me) and MHI TAX Free Monthly of around 10% just raised
> to 7.5 cents from 7 cents.
>
> I'm listing them because you haven't.
>
> Due Diligence is a "must be done".
>
> CQP's payout is good for the rest of the year only, TNK's payout
> will probably go lower but it has been structured to payout almost
> 100% of its earnings. WMZ's payout has a minimum built into its structure.
>
>
> I've done my own DD and believe the returns are worth the risks.
> I haven't shoved all of my money into a smaller selection because
> There are Risks.
>
> There are many more Literally floating around, like PGF but you can't
> buy everything.
>
> Good luck everyone, I believe this Market is providing the Income
> Opportunity of a lifetime.

Mar 13 06:14 AM

[Cliff Wachtel:]

A valid view. Though "the heads" can change their tune quickly. As noted in the article, we need to balance between having cash on hand to exploit lower prices and getting good returns now while we wait for prices to recover. Thanks for the comment.


On Mar 12 12:04 PM notsosmart wrote:

> better be very selective & careful.it may pay to wait. this is
> not the bottom in my opinion & my opinion is as useless as all
> the talking & writing heads all with a agenda.

Mar 13 06:17 AM

[Cliff Wachtel:]

Right. THanks for the comment and kind words.


On Mar 12 12:50 PM Aalan wrote:

> A lot of good ideas here.
>
> However, it's not wise to rely on specific price support levels for
> leveraged ETFs, especially index-inverters like SDS, because the
> baseline is reset daily. It would make more sense to take signals
> from the index itself for when to buy or sell the inverse fund.

Mar 13 06:20 AM

[Cliff Wachtel:]

I hope to be writing more on MLPs in the near future. If you haven't already, you may find some of my past articles dealing with them useful.


On Mar 12 03:20 PM whisperonthewind wrote:

> Although the MLPs and partnerships require additional work at tax
> time, I discovered that they also increased my tax refund this year.
> Maybe that was because I was lucky and the ones I had didn't lose
> a lot, or maybe it was because I got in while they were down a lot.
> We'll find out next year. If someone has had a different experience,
> I'd be interested in hearing it.

Mar 13 06:22 AM

[Cliff Wachtel:]

Thanks for your comments.

I hope to be writing soon about the dividend investing approach, and why I continue to believe in it even in this market, though I'm very selective about when and what I buy (note my buy levels).

FYI, except for the energy producers, few of the above recs arel likely to see divy cuts, unless their businesses suffer significant further deterioration, which is unlikely barring another sharp economic decline brought on by revelation of further economic skeletons,or a major geopolitical 'event' like a major terror attack on an economically sensitive target (energy supply line, power plant, stock exchange, mining the Persian gulf, Mideast war, attack on/by Iran and its proxies, etc).

These scenarios can't be ruled out. On the other hand, cash and cash equivalents pay virtually nothing.

In sum, if you're investing, these stocks are great long term bets, though we may well yet see lower prices if you're into trying to time the market.


On Mar 12 06:45 PM The Little Professor wrote:

> Under normal conditions many of the stocks discussed would be wise
> investments. Today buying any of these is equivalent to tossing the
> dice. In my opinion only those who can afford to lose and who have
> a long time horizon-over 2 years- should buy right now. Except for
> brief rallies the bear market continues, and the economy slips further.
> This recession more than others is proving that a falling tide lowers
> all boats. It is likely that many of the fat dividends mentioned
> will be cut.

Mar 13 06:39 AM

[Cliff Wachtel:]

Thought I mentioned that. Thanks for the comments and correction, which is always appreciated.


On Mar 12 07:05 PM Universal Huckleberry wrote:

> A minor point: (seekingalpha.com/symbo...) is not an MLP
> itself, but a closed-end fund that invests in energy infrastructure
> MLPs. The correct name is "Tortoise Energy Infrastructure Corp."

Mar 13 06:41 AM

[Cliff Wachtel:]

Thanks for the kind words, and glad you appreciate one of my primary goals - to give really useful info. Too much "teaser" blogging (to then sell you something) or otherwise useless verbiage out there.


On Mar 12 10:10 PM Big K wrote:

> Finally, someone who gets it and gives advice we can use! Thanks,
> Mr. Wachtel.

Mar 13 06:46 AM

[Cliff Wachtel:]

Thanks for your very worthwhile input.


On Mar 13 05:44 AM Delojozafado wrote:

> I will now put in a higher limit for VZ closer to $36 than $25?
>
>
> I recently added 300 (seekingalpha.com/symbo...) Eagle
> Rock post the ex date, a producer MLP, my target is $7 against my
> cost of $4.45. It is "junk" but if oil should move to a new high
> over $52... EROC has given their investors the bird alright. So far
> they have maintained their "perhaps" unsustainable distributions.
>
>
> While I own no (seekingalpha.com/symbo...) I have found
> the (seekingalpha.com/symbo...) (seekingalpha.com/symbo...)
> and (seekingalpha.com/symbo...) both to be working in the
> last 3-4 months as trading vehicles. KYE has issued press releases
> confirming their intentions on a minimum target for distributions.
> I prefer the KYE to the KYN in terms of getting a ~15% exposure to
> the Can-roys. I have also been mugging up on (seekingalpha.com/symbo...)
> as the Loonie slides below .80. ENY is currently 70% in CanRoy O&G
> shares in their oilsands-Canroy index mix. ENY gets back to +$11
> on $55 oil and that effect driving the Loonie back to .82-.84. MTP
> continues to sell at a discount. You could still get KYE at a discount
> last week. That is what makes it such a great trading vehicle. KYE
> is something to take a little off the table at +$14 where it generally
> exhibits a premium. BSR is another MLP, no K-1 no UBTI issues investment.
> A great buy and yield below $22 and time to off load a little over
> $25. For weak dollar plays there are the non O&G Loonie beaten
> Trusts still paying out. Chemtrade (seekingalpha.com/symbo...
> and fertilizer chemicals, Bird Construction (seekingalpha.com/symbo...)
> general consrtruction but concentrated in the oil,gas, and oil sands
> infrastructure business. Possible benefactors of trans-Alaska Nat
> gas pipeline project as well as 2010 Vancouver/WhistlerBlac... Winter
> Olympics. (seekingalpha.com/symbo...) Great Lakes Hydro
> hydrology is best in 2nd qtr. Record profits and production in 2008.
> New generating capacity that just became accretive in Feb. The Loonie
> is going to reassert itself on the back of the worlds best managed
> economy with the worlds strongest banking system. We note the Chinese
> grumbling and the Ten year note tanking.
>
> I would just add a couple international integrated issues as well.
> i am holding some BP and might add to it if it drops below $33. The
> REP-PA went Ex uyesterday. Inclusive of the distribution it has had
> a monster move higher the last few days off the $16.85 where I added
> shares last week. These internationals will of course benefit from
> the US dollar weakening. The IRR Closed end fundd is also something
> I am targeting but still do not own.
>
> I do own the coal MLP rich closed end fund BGR. Iron ore prices have
> moved higher in China as of late. Met coal is the best and you can
> ~speculate~ once again in Canada in (seekingalpha.com/symbo...)
> Grande Cache and (seekingalpha.com/symbo...) Hills borough
> getting those MT s of Met coal out of the ground and to market. ~Apparently~
> their hedges are good enough to sustain their businesses until the
> next big upturn in steel.
>
> In the utilities you can return to (seekingalpha.com/symbo...)
> or perhaps dabble in the tax advantaged/disadvantag... stapled units
> of ATPWF Atlantic power. Some what speculative and perhaps some debt
> issues. Atlantic power has their debt and distributions in Loonies.
> An income/dividend scheme avoids Can with holding but incurs US bond
> income tax. ATPWF has their generating and grids in the US and may
> capture some infrastructure stimulus benefits. I own them both and
> have recently added the beaten down (AES-PrC). The AESPC had a monster
> move higher yesterday on the weakening US dollar. They are profitable
> enough to be able to pay their debt obligations that were substantially
> retired and/or restructured in 2007-2008. (seekingalpha.com/symbo...)
> is coming up on their annual EX date. I have not owned these shares
> as of late but they make a good trade between $26 and $32 with the
> ex date for the full year distribution looming in a few weeks. With
> it's expansion into the Nat gas pipeline service the Empire District
> Electric common looks ~OK~ to me with it's generous yield. (seekingalpha.com/symbo...)
> a great payer but more likely a takeover candidate at this depressed
> valuation.

Mar 13 06:49 AM

[jstratt:]

Thank you for some excellent information. KMP is one that keeps getting recommended. I think I will research it in more depth. I appreciate the idea.

Mar 13 08:30 PM

[Conan the B...:]

Cliff: CanRoys, taxes withheld when Canadian dollar was much stronger and Oil dividends much higher for the first 6 months of 2008 may have something to do with the unexpected tax credit.

IMO

Mar 15 08:43 AM

[Cliff Wachtel:]

Unexpected tax credit? Didn't hear about that. Please clarify. The only one I know if the one you can get from the IRS for the 15% w/h. Are you referring to something else?


On Mar 15 08:43 AM paultaut wrote:

> Cliff: CanRoys, taxes withheld when Canadian dollar was much stronger
> and Oil dividends much higher for the first 6 months of 2008 may
> have something to do with the unexpected tax credit.
>
> IMO
>

Mar 15 11:06 AM

[Conan the B...:]

Sorry, I meant it as a response to "whisperonthewind's" question which was unanswered.

Mar 15 09:46 PM

[User 381045:]

PVR, the coal MLP has a high dividend. seems their income is very predictable. do you forsee a cut?

Mar 22 11:55 PM

[letsroll:]

UltraShort Financials ProShares (SKF) -- Buy Under $141; Strong Buy below $125.

t s $87 rght now! Is this a ver strong buy now?

Apr 02 03:05 PM