Seeking Alpha

Tim McPartland's  Instablog

Tim McPartland
180 Followers
4 Following
Send Message
Tim McPartland is a private investor with almost 40 years of investment experience. Additionally he is the editor of The Yield Hunter, a website devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks, exchange traded debt and Canadian... More
My blog:
The Yield Hunter
View Tim McPartland's Instablogs on:
  • Eat Your Wheaties! A Look at General Mills
    Big G cereals, Totinos pizzas, Green Giant vegetables----not the exciting stuff of a high growth company--but instead solid base businesses for a very solid food company.

    General Mills (ticker:GIS) recently released stellar earnings for the 3rd quarter ending February 27, 2011   Now the top line left something to be desired, but were in line with just what you get with General Mills -- slow growth, dependably good earnings and a 3% yield.

    Sales for the quarter were up around 3% from last years quarter while they held SG & A totally flat---bringing buckets full of added income to the bottom line.  Earnings were up a super 18%  while per share earnings were up 23% benefiting from an ongoing share buyback program.

    General Mills has had a rather stagnant domestic food business for years with declines in sales of old line brands such as Pillsbury and Big G at least partially offset by sales in newer lines such as Cascadian Farm, Nature Valley, Fiber One and Yoplait.  

    International sales are the driver of sales growth with General Mills---even though at this time they represent less than 20% of sales and 10% of income--they are the future and the company is well aware of this fact as they negotiate for global rights to the Yoplait Brand (they have only U.S rights at this moment).
     
    With modest growth, exceptional cost control and an ongoing share buyback program in place we expect General Mills to continue to show excellent per share earnings.  Additionally we fully expect to see a 2 or 3 cent increase in the quarterly dividend in the months ahead.
     
    For conservative investors looking for that 10% total return we think that GIS may provide at least that in the coming year.
     


    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Tags: GIS, Long Ideas, Dividend Stocks
    Apr 21 4:29 PM | Link | Comment!
  • Nothing Wrong with These Solid, Safe Yields!
    Many of us are simply looking for a decent return on our investment with minimal risk to our capital.

    We have found that exchange traded debt issues (traded generally on the NYSE) work very well for us.  They are easily bought and sold, commissions are our normal trading commissions, they pay quarterly interest payments and best of all---our capital is fairly stable.

    These issues are normally $25 issues (and are callable after at $25 after 5 years) and likely are subordinated notes--meaning they are senior to equity issues, but junior to secured debt.

    Issues in particular that we like now are Xcel Energy 7.6% subordinated notes (Ticker:XCJ) with a current yield of 7.3%, Comcast Corporation 7% notes (Ticker:CCT) with a current yield of 7.02% and American Electric Power 8 3/4% Jr Subordinated notes (Ticker:AEP-PA) with a current yield of 7.93%.

    If you are looking for capital gains--these are not your vehicle, but if income is your goal these are pretty solid returns.






    Disclosure---author is long  shares in all of the issues mentioned

    Tags: Bonds, Income
    Nov 29 2:19 PM | Link | Comment!
Full index of posts »
Latest Followers
Posts by Themes
Bonds, Dividend Investing, Dividend Stock, Dividend Stocks, Income, Income Investing, income investing, Income Investing., Income Investing. Trust Preferred Stock, Income Investment, income stocks, Investing for Income, Long Ideas, Preferred Stock, Preferred Stocks, preferred stocks, REIT, REIT's, REITs
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.