Careful Investor III

10 Clean Energy Stocks for 2009

This stock was hit very hard after it reduced its dividend from about 0.80 C to 0.20C per year, effective 3 months ago. The management probably made a wise decision, holding cash in order to safeguard its current holdings as well as to purchase other assets without borrowing any or as much money. The stock immediately went to about $1.90 US, down from $6.50 to $7.00 US. In recent days it has traded as low as $1.42 US. If you go to the fund's web site, they do a good job in showing the various clean energy investments that they are involved in, and they have a good presentation of financials. The stock still yields north of 8%, and it is my sense that this is a good clean utility investment.

Good Bye U.S. Savings Bonds, Hello Stem Cells, Farmland and India

It always pays to be skeptical when reading the financial press! It is not unusual that the articles presented are written by inexperienced young people who earn a living by getting something in print. This article is a case in point. I bonds are currently paying 5.64% of compound interest that is not taxed until they are redeemed, and when they are redeemed the interest is only subject to federal income tax (no state tax). The bonds may be redeemed at any time after a year. It is true that there is a two month interest penalty for redeeming prior to five years, however this is modest in comparison to many CD's. The interest will be reset April 30 and may very well go down for the next six months, but will give the saver protection when the inevitable inflation comes back. The bonds are as good as FDIC insurance, and the $5000 maximum is not really true. You may buy $5000 per year in paper I bonds and an additional $5000 per year in bonds maintained in an on-line U.S. Treasury account. If you are married those numbers are doubled if you chose to buy bonds that are co-owned by your spouse.