And a happy “Gitmo Sell-Out, By America’s Most Inept President In History, Day” to all readers.
This morning I’d like to put on my investor adviser hat (https://twitter.com/MurraySoupcoff) and talk about what is probably the second most interesting topic after Judge Jeanine Pirro’s Saturday night suggestion that Barack Obama should be IMPEACHED (http://beforeitsnews.com/obama/2014/05/judge-jeanine-unleashed-impeach-obama-2463070.html)
Now there’s one judge who makes sense!
Anyway, where was I before I referenced impeaching America’s community-organizer-in-chief?
Oh yes, what I hope to do, this morning, is to offer some timely investment advice.
In my opinion, U.S. stock indices appear to be “rangebound” – regularly rising & then falling again, enough to make any investor sea sick.
So per usual, I’ve been looking for reliable income & growth stocks to allow any non-professional investor to sleep at night thru these market vacillations.
I’ve done my due diligence; and here’s my PERSONAL choices (with, of course, NO guarantees — except that I’ve done my very best to find the best selections for myself & “Intellectual Conservative” readers).
And so, in no order of priority, here I go:
And because I’m an energy stock-sector enthusiast, many of my choices are meant to benefit from current record U.S. & European oil & natural gas prices.
ENERGY STOCK BONANZA
And now here’s my first selection, in this category, (drum roll please):
ENERGY TRANSFER PARTNERS MLP ($ETP), yielding 6.58% annually
This dividend monster (a Master Limited Partnership) recently reported adjusted earnings of $1.21 billion, an increase of $250 million from the same period last year.
Not only that, but revenues, from continuing operations, were $467 million (a pretty good haul, in my opinion).
And that’s an increase of $65 million from last year (also very impressive).
AND distributable cash flow (via dividend payments) totaled $629 million, up $253 million from 2013.
To me, this MLP looks like a reliable generator of tasty cash dividends (6.58% annually) for the next couple of years.
Try it; I think you’ll like it!
ANOTHER DRUM ROLL PLEASE
And now to energy choice #2:
And here is one of my very favorite oil/gas shale energy companies:
Please step up to the podium, ENERPLUS CORPORATION ($ERF; $ERF.CA), yielding 4.39% annually.
This company’s able management has already predicted that its 2014 production, and net profits, will likely come in at the HIGH END of management’s previous forecast .
And that’s because of soaring production & revenues from its extensive Marcellus (shale) land holdings — rich in both oil & natural gas deposits.
And why is that factoid important?
Well, since I expect today’s record prices for oil & natural gas to continue until at least 2018, Enerplus — in my opinion — is a safe and (likely) profitable energy investment for the next several years.
TIME TO LOOK AT ONE OF THE BIG BOYS OF THE ENERGY INDUSTRY
And now let forget about all of the previous energy-company shrimps.
Instead, let’s look at one of the biggest of the biggest global energy giants:
Please step up to the plate, KINDER MORGAN ENERGY ($KMP), yielding 5.4% annually
The good news is that KMP plans to invest $671 million to expand its VERY PROFITABLE Cortez pipeline, which transports carbon dioxide from Colorado to New Mexico, for use in enhanced oil-recovery projects.
Not only that, but management recently also announced excellent first-quarter results.
In particular, net income totaled $12.1 million ($0.79 per diluted share), compared to $14 million ($0.91) in 2013.
And KMP’s company’s direct written premiums increased 3.8% for the quarter.
To be honest, I don’t understand a word of the preceding energy-industry jargon (about “direct written premiums”) – except that it’s evidently a very good thing.
MY CONCLUSION ABOUT KINDER MORGAN
Based on all of the above indicators, here’s my take on Kinder Morgan Energy:
In my prejudiced opinion, this is another reliable energy-stock generator of healthy dividends (5.4% annually); and also a stock-market investment with great future capital-gain prospects.
HOW ABOUT SOME VARIETY HERE … AFTER ALL, ACCORDING TO PROGRESSIVE LIBERALS, DIVERSITY IS THE NAME OF THE GAME
But now for some variety, let’s look at two non-energy choices:
So, first, let’s go shopping and peruse: SUPER VALU ($SVU), currently paying NO dividend.
Super Valu recently pleased retail analysts with its results for its fiscal fourth quarter:
For example, net sales hit $3.95 billion; and net earnings came in at $26 million – very impressive numbers.
And more debt was reduced through the sell-off of some of Super Valu’s redundant assets.
In my opinion, the preceding good news indicates that this is a retail stock with a great future, with regard to capital gains (although it pays no annual dividend).
YOU JUST CAN’T GO WRONG WITH THE GENERAL (IN THIS CASE GENERAL ELECTRIC)
And finally let’s look at one of the best-branded stocks on U.S. markets:
After all, who wouldn’t recognize the GE (General Electric) logo?
So let’s open the proverbial investment refrigerator door, and take a look:
And another really, really big drum roll is justified for this international investment giant … GENERAL ELECTRIC COMPANY ($GE), yielding 3.24% annually.
This is a diversified global giant for which there seems to be no investment sector in which it currently doesn’t “dabble”.
And in that regard, GE has just announced a partnership between its healthcare division and Tesla Engineering:
The two companies will collaborate on the development of a new whole-body magnetic resonance imaging (MRI) scanner, and on additional other profitable hi-tek projects.
Hence, in my opinion, this another excellent bet on capital gains — accompanied by a sustainable 3.4% annual dividend payout — for the next several years.
And by “a sustainable annual dividend”, I mean that GE rakes in so much cash annually, it will have no problem paying its dividend — regardless of “normal” global economic fluctuations.
Phew! Well, it’s good to get all of the preceding investment “advice” off my chest.
But truth be told, even I find it boring – in comparison to Judge Jeanine’s Saturday night suggestion that Barack Obama should be IMPEACHED.
My personal political advice?
Vote Republican in November, and let the impeachment proceedings begin!
[Murray Soupcoff is editor and co-author of “Good Buy Canada” and author of “Canada 1984”.
He was a founding member (and senior partner) of Ian Sone & Associates Ltd — Canada’s first independent social-research company specializing in evaluations of federal, provincial & municipal government projects in Canada.
He is also the publisher of the FREE “Soupcoff Report” investment newsletter, whose distribution is partly subsidized by paid subscriptions from former research clients.
You can e-mail Murray Soupcoff at: email@example.com]