| Dividend Detective: Search for income |
| Thursday, May 28, 2009 |
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Here, the advisor reviews some of his latest buys among master limited partnerships, preferreds and yield-oriented closed-end funds. "Among energy partnerships, we're adding two new picks to the portfolio with a buy rating. "First, NuStar Energy (NYSE: NS), currently yielding 8.4%, operates crude oil and refined product pipelines and associated facilities. "NuStar recently acquired asphalt refining and terminal facilities, a business that's expected to boom once the government supported highway construction projects kick in. "In addition, we are recommending propane distributor Suburban Propane Partners (NYSE: SPH). The stock is a relatively steady low-risk pick, currently yielding 8.3%. "Among preferred stocks we are recommending two holdings issued by two financially solid utilities to the portfolio, one yielding 8.2% to new money, and the other 7.8%. "FPL Group is an expansion minded electric utility headquartered in Florida. In March, FPL issued non-cumulative preferreds (FPL- series F), paying 8.75%. Issued at $25, the shares, trading at $26.75, are still yielding a hefty 8.2%. They are callable in March 2014 at $25. "South Carolina Electric & Gas is a wholly owned subsidiary of SCANA, a natural gas and electric utility serving Georgia and South Carolina. The 6.52% cumulative preferreds (SCEGH) issued at $100, now trading at $83, offer 20% upside potential, and are yielding 7.8% to new buyers. "In our closed-end fund portfolio, we're adding the John Hancock Patriot Premium Fund II (NYSE: PDT) to the portfolio. The fund holds a mixture of common and preferred shares, but it has recently increased its weighting of preferreds. "It can hold shares from any industry but it overweights utilities. The fund pays monthly and raised its payout by 14.5% in January 2009 and by another 10% on May 1." |
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