China's Top Dividend Plays
The prognosis for the coming years is that there will be excellent growth in China and stagnation in the U.S.A. With this in mind, income investors need to have exposure to the Chinese market -- it's simply the best opportunity for dividend growth and capital gains in the world. But you need to know where to look. This fast-growing country only offers a handful of high-yielders, and Carla Pasternak has highlighted two in this report. (1.) Oberweis China Opportunities (OBCHX)
Snapshot: This no-load mutual fund is taking full advantage of some of China's best investing opportunities. OBCHX invests at least 80% of its assets in Chinese securities. The fund generally invests in small and mid-cap companies, and its holdings have an average market cap of about $850 million. The fund was launched in October 2005. OBCHX then put up impressive numbers in 2006 and 2007, +81.2% and +59.3%, respectively. So far in 2009, OBCHX has gained +122.9%. The fund carries a 2.0% expense ratio and requires a minimum investment of $1,000. Based in Hong Kong, manager Vanessa Shiu uses strict guidelines in her selections. One of these guidelines is that a company's stock must have outperformed at least 75% of other stocks in the market over the preceding twelve months. Another is that the selections must be experiencing rapid growth in revenue from internal growth. While these criteria, and others, limit Shiu's options, they limit her to the best and fasting growing companies in the region.
Her current batch of Chinese gems includes Longtop Financial Technologies Limited, a software company that services financials. Longtop just recently increased its current quarter earnings per share guidance by about 10%. Rounding out the top three are Shandong Weigao Group, Medical Polymer and AsiaInfo Holdings, Inc. Its sector breakdown is as follows: business services (26.02%), industrial materials (19.76%), consumer goods (14.57%), consumer services (9.39%), and software (8.91%). This fund has less exposure to the financial industry than its peers, making it ideal for investors who want to limit their exposure there.
Oberweis China Opportunities (OBCHX)
Business: Mutual fund investments for small and mid-cap companies Yield: 15.7% Frequency: 1X/Year
Yield: The fund generally pays annual distributions in December of each year. In 2007, the fund made a distribution of $2.04 per share, and in 2008, it paid $2.765 per share. Shares of OBCHX are trading at a price of $17.55, giving the fund a trailing 12-month yield of 15.7%. The majority of the fund's distributions have historically come from long-term capital gains. Outlook: If the Chinese economy continues to grow as expected, OBCHX will be a clear winner. This is largely due to its stock-selection style, which is much bolder than most other China funds. This fund prefers small, rapidly growing companies. By focusing on smaller companies, the potential for this fund to outperform its peers that focus on larger companies is huge.
(2.) ING Asia Pacific High Dividend Equity Income Fund (NYSE: IAE) Snapshot: This closed-end fund invests in roughly 100 high-dividend stocks in the Asia Pacific region and sells call options on Asia Pacific stocks and indices. The fund makes money from current income, capital gains and capital appreciation. Yields: The dividend is paid quarterly and currently stands at $0.448 per share, giving the company a yield above 10%. The mix of income producing methods employed by the fund should continue to keep the dividend reliable.
ING Asia Pacific High Dividend Equity Income Fund (NYSE: IAE)
Business: Closed-end fund focused on call options Yield: 10.3% Payment Frequency: Quarterly
The fund's largest holdings include Samsung Kodex 200 Exchange Traded Funds (4.1%), BHP Billiton (4.0%), and China Mobile (2.9%).
Outlook: Despite being battered last year, I still like IAE's long-term prospects.
These are just two of the safe, high-yielding securities from China that Carla Pasternak has covered recently. If you liked what you found in this report, then you should check out what other stocks Carla's investing in. Her track record speaks for itself -- all of her stocks are up! For all of the details, keep reading...
The High-Yield Portfolio That's Up +46.2%... with 100% Winners
See how a portfolio racks up a 100% win rate... and how YOU can get in on the winning spree yourself
Dear StreetAuthority Investor,
Carla Pasternak's foreign stock picks are on fire. She's on a 100% win spree. Not even Warren Buffett can say that. All of her 31 international picks are up. One has returned a whopping +188.3% -- and she's only owned it since January! Why have Carla's foreign picks been on such a tear? Simple: While the U.S. is stuck in neutral, Carla is putting her subscribers' money to work in places enjoying strong growth -- and where corporations are increasing their earnings. And talk about yields! These markets are an income investor's dream. Why keep your money in U.S. stocks paying 2.5% in a flat economy... when you can buy stocks yielding 14.8% in countries that are growing 5%, 6% and 7% a year? (That 14.8% payer is in Carla's High-Yield International portfolio right now!) Carla's three highest-yielding foreign recommendations are set to pay their owners 12.5%, 12.9%, and 14.8% over the next 12 months -- even if their share prices don't move a penny. For every $100,000 in your portfolio, you could receive $14,800 in income a year -- in addition to any capital gains you might make. Escape the Cash-Flow Desert It's a cash-flow desert here in America for anyone who needs to bank an income off their portfolio. The average U.S. stock pays just 2.5%. (We now have the stingiest stock market in the world, apart from Japan's.) While you can find the occasional high-yielding stock, odds are that anything paying above say, 15%, is a basket case. In fact, once you weed out the money losers, only 15 stocks in the entire United States pay more than 15%. Just 15 lonely survivors. But guess what? Expand your horizon a bit and it's a completely different story. Right now, there are actually 311 profitable companies yielding more than 15% -- they just don't happen to be in the U.S. 15 here versus 311 abroad -- where do you think the best hunting ground is for a yield-hungry investor? 95% of the jaw-dropping yields these days are abroad. Meanwhile, the dollar is weakening, boosting the value of those dividends month after month. Now do you see why I'm so excited that Carla is serving up her best foreign findings in High-Yield International? Click to Order
Why have Carla's foreign picks been on such a tear? Simple: While the U.S. is stuck in neutral, Carla is putting her subscribers' money to work in places enjoying strong growth -- and where corporations are increasing their earnings. And talk about yields! These markets are an income investor's dream. Why keep your money in U.S. stocks paying 2.5% in a flat economy... when you can buy stocks yielding 14.8% in countries that are growing 5%, 6% and 7% a year? (That 14.8% payer is in Carla's High-Yield International portfolio right now!) Carla's three highest-yielding foreign recommendations are set to pay their owners 12.5%, 12.9%, and 14.8% over the next 12 months -- even if their share prices don't move a penny. For every $100,000 in your portfolio, you could receive $14,800 in income a year -- in addition to any capital gains you might make.
Escape the Cash-Flow Desert
It's a cash-flow desert here in America for anyone who needs to bank an income off their portfolio. The average U.S. stock pays just 2.5%. (We now have the stingiest stock market in the world, apart from Japan's.) While you can find the occasional high-yielding stock, odds are that anything paying above say, 15%, is a basket case. In fact, once you weed out the money losers, only 15 stocks in the entire United States pay more than 15%. Just 15 lonely survivors. But guess what? Expand your horizon a bit and it's a completely different story. Right now, there are actually 311 profitable companies yielding more than 15% -- they just don't happen to be in the U.S. 15 here versus 311 abroad -- where do you think the best hunting ground is for a yield-hungry investor? 95% of the jaw-dropping yields these days are abroad. Meanwhile, the dollar is weakening, boosting the value of those dividends month after month. Now do you see why I'm so excited that Carla is serving up her best foreign findings in High-Yield International?
Click to Order
If You Want High Yields You Have to Go Overseas...
If you want truly high yields, you need to look overseas. You have no choice, because that's where they are. That's the basic premise of High-Yield International. If that weren't true, there's no way I would have gone to the trouble and expense of starting this service. It wouldn't even exist. While U.S. shares pay a puny 2.5%, the average stock in the Czech Republic yields 7.1%! And there are plenty of Czech blue chips throwing off 10% and more! Check out the nearby chart and you'll see how much more other markets yield. And I'm not even including a dozen other smaller markets that are also paying more than the U.S. Finland, for example, yields 4.1%. Thailand yields 3.7%... Greece, 3.2%... and Holland, 3.5%. And remember, those are just the averages, weighted down by large numbers of stocks that don't yield a cent.
Dividend Yields of Major Stock Indices
The average dividend yield of the S&P 500 today is just 2.5%. That's peanuts compared to yields in other developed nations...
You Get Better Growth, Too!
Going abroad isn't just about dividends. Most foreign economies are growing faster than ours, too. Simple logic dictates that their stocks will grow faster, too. Just as the recession hit the world unevenly, the next wave of growth will also be uneven. But one thing is clear: When the global economy starts to rebound in earnest in coming months, developing nations -- not the United States or Europe -- will be the engines driving that growth. Here are the estimated 2010 growth rates for the world's major economic regions...
Projected Growth for 2010
While the U.S. is stuck in neutral, you can put your money to work in places enjoying strong growth -- and where corporations are increasing their earnings. This is where stock prices and dividend payments will rise fastest and soonest.
Join Us and Profit from the World's Most Powerful Investment Force
Whether you're investing in Zanzibar or on the NYSE, you're making a currency bet. An appreciating foreign currency gives even the stodgiest foreign stock a wonderful "tail wind," pushing the dollar value of your investment ever upward -- even if its price in local currency doesn't move a bit. Get the currency right and you've already won half the battle. If you can get into a country when its currency is 200 units to the dollar and get out when it's 100 to the dollar, you've already doubled your money. And that's on top of any capital gain on the stock, or interest on the bond. Look at the gains racked up by U.S. dollar investors over a recent five-year stretch:
Global Stock Markets Head-to-Head
Take Australia, for example. You could have bought any Australian stock, and with the currency doubling against the dollar, you would have had an extra 141% in your pocket -- on top of whatever the stock returned. The +160% return of Australia's All Ordinaries Index became a +301% gain for U.S. investors.
Almost the exact same thing happened in New Zealand. Over those five years, stocks soared +92% there. But American investors gained +176% because of the currency. In Germany, stocks rose +165% in euros, but in dollar terms they were up +273%. It goes on and on around the world. In Great Britain, stocks rose +94% for British investors, but +145% for their U.S. counterparts. In Brazil, the currency effect was like rocket fuel. Local investors saw their shares soar +518%? but in dollar terms Brazilian stocks gained an eye-popping +1,203%.
Safety First: How Carla Avoids High-Yielding Dogs
High-Yield International is the only periodical devoted exclusively to helping you make money with high-yielding foreign securities. Nowhere will you find a more thorough ranking of your foreign income-investment options than in this monthly investment bulletin. Join us and you'll be part of a growing band of investment adventurers who share a love for reliable investments delivering hefty income and strong capital gains. One more thing -- it's important: Carla invests in quality securities -- NOT in high-yield junk. She is not naive about the dangers that can lurk behind outlandishly high yields. To make sure your dividend is SAFE, she puts every stock, bond and mutual fund through a unique analytical boot camp. She calls it her "Dividend Optimizer." Her model identifies securities with safe and lasting income streams. It then ranks them from best to worst based on her unique scoring system. No one else has this proprietary ranking mechanism. Here are a few things Carla needs to see before she even thinks about recommending an investment to you:
A long track record of improving earnings. The longer a firm has been profitable, the more likely it is to deliver steady returns in the coming years. A history of consistent and growing dividend payments. Carla wants to see steadily increasing dividends with no declines or missed payments. Strong cash flows. Since you can't pay dividends without cash, we need to find companies that are generating above-average amounts of cash each and every year. Strong projected growth. Growing firms are more likely to be able to boost their dividends in the future. A sustainable payout ratio. Firms occasionally pay out 100% or more of their earnings to shareholders. They can't do this for long without cutting their dividend. She avoids firms that are skating too close to the edge. If we can't verify the numbers to our own comfort level, we take a pass. Instead of swinging wildly for the fences, we prefer to stand calmly at home plate, patiently waiting for the perfect moment to swing. There's no hurry, because the umpire can never call us out. We simply wait as long as we want for the ideal pitch to float across the plate.
What You'll Get When You Join Us
High-Yield International is a web-based newsletter that you can access the instant Carla releases each monthly issue. You can then easily print out the issue from your computer if you wish. In addition, you can access the complete issue anytime on our members-only website. And this site gives you many more useful tools, including FREE access to our Issue Archives. Here you can find detailed research and updates on Carla's portfolio picks -- and many others besides -- that were introduced in our back issues. You'll also get Mid-Month Updates to keep you informed of any breaking market events or opportunities. This is not a skimpy bulletin, but a solid overview of the global high-yield scene, with specific buy/sell/hold advice on every position in both her portfolios. In addition to your monthly issues and mid-month updates, we'll alert you by email whenever there's breaking news on one of her holdings. In every issue you'll also get: Global Focus: Here Carla focuses on a particular country or region of the globe. It's a unique level of analysis that you won't find in any other advisory. High-Yield International readers last stopped in Brazil, where stocks rose more than 500% in five years. Thanks to Brazil's appreciating currency, U.S. investors were up more than 1200%! Subscribers discovered an ultra-safe way to tap into the Brazilian boom via an electric utility paying 11.4%. International High-Yielder of the Month: Most of our readers turn here first. It's an in-depth profile of an especially attractive company, fund, trust (or perhaps an exotic security you've never even heard of before) that Carla is adding to one of her portfolios immediately. The most recent find was a Canadian power supplier with a rich 12.0% yield. Foreign Income Plays: A detailed look at a timely industry or sector that's firing on all cylinders -- and the best way to play it while pocketing instant high yields. High-Yield International's Reliable Income Portfolio of foreign common stocks, preferred stocks, mutual funds and ETFs with highly dependable yields... and downside-risk protection. These stable, growing cash cows have long track records and strong future prospects. You can count on them to deliver premium income year-in and year-out. A more aggressive Ultra-High-Yield Portfolio of securities with breathtaking yields of up to 14.8%. Granted they come with downside risk -- but here's where you'll find some of the highest-yielding investment ideas on the planet. Nothing gets in here unless it offers an annual income stream of 10% or greater. Portfolio Review: News and updates on portfolio holdings, including current advice... plus a look ahead at one or two new companies Carla's looking at for possible purchase.
Look at What Else You Get...
You'll also get a package of special reports Carla has prepared especially for new subscribers. Here's a peek at the three you get with a one-year subscription:
Come on board for two years and I'll send you these three additional reports:
Not for Everyone... But Maybe Perfect For You
High-Yield International isn't for everyone. You will be part of an elite investment alliance -- not a mass-circulation service. Instead of trying to get a zillion subscribers, I want to make sure this service does what it's supposed to: take the guesswork out of choosing high-yields from around the world without any hidden liabilities that could trip up a safety-first investor. The picks in High-Yield International's Ultra High-Yield Portfolio are yielding an average of 9.7% right now. For every $10,000 you invest, you'll be pocketing $970 per year in dividends alone from these foreign cash cows -- and plenty more if you want to be aggressive. What is making almost four times the yield of the average stock -- while reducing your risk -- worth to you?
Only you can answer that. But our guarantee makes the fee irrelevant. If High-Yield International isn't right for you, we'll send you every penny of your payment back. Take a whole year to decide. No fine print. When those fat distribution checks come rolling in, the beauty of our "pay-me-now" approach will be obvious. You'll recoup your initial investment before you know it. After that, every check is pure gravy. And any capital gain down the road is icing on the cake. So it's your choice. You can place your investment future on the back of U.S. stocks... a market yielding 2.5% that even optimistic forecasters believe is facing a long uphill struggle... or join us as we lock in solid foreign plays yielding from 6% to 15% right out of the gate in dividends alone. I think the choice is clear. Please try a no-risk subscription today.
Sincerely, Lou Betancourt Publisher High-Yield International P.S. Want another great reason to join Carla Pasternak as she takes the reins of High-Yield International? You get up to six free investment reports to help you get off to a running start: The Best Way to Global Profits, High-Yield Global Funds for Dividend Lovers, High-Powered Asian Cash Cows, Monthly Money: High-Yield Stocks That Give You Cash When You Need It!, High Yields South of the Border, and Gains Ahead: Fast-Growing Global Beauties.
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