A falling
dollar is good news for U.S. investors
who own foreign securities, but you
don't necessarily have to look beyond
America's borders to find opportunities.
For instance, which of these commodities
producers has taken advantage of the
lower dollar and increased its quarterly
dividend +44% in only three years?
A.) Endeavour Silver Corp (EXK)
B.) Intrepid Potash Inc. (IPI)
C.) New Gold Inc. (NGD)
D.) Royal Dutch Shell (RDS-A)
E.) Bunge Ltd. (BG)
|
|
Published:
January 28, 2009
The correct answer
is: (D.)
Royal Dutch Shell (RDS-A)
Shell pays a
quarterly dividend that its
management team has said it would
like to increase every year by more
than the inflation rate. Since 2006
the quarterly payment has increased
from US$0.556 to US$0.80 per share
-- a rise of +44% in only three
years. The US$0.80 per quarter
payments translate into a yearly
total of US$3.20 and a yield of 5.8%
at current prices.
The Amsterdam-based company's
revenue is more gas-oriented than
its other super-major peers; about
40% of production is natural gas. In
addition, Shell is more focused on
unconventional sources of oil and
gas than most -- the company plans
to derive more than 10% of its
revenue from sources such as oil
sands and liquefied natural gas by
2014. This coincides with Shell's
long-standing reputation as an
industry leader in technology and
engineering. Shell's strong balance
sheet -- one of the best in the oil
industry -- will protect it from a
prolonged period of low
crude/natural gas prices and should
help it maintain its dividend.
As you can see, the decline in the
U.S. dollar presents opportunities
to savvy investors. That's why
StreetAuthority editor Nick Lanyi
names the falling dollar as one of
2009's most important trends in
international income investing. His
latest issue of the
High-Yield
International newsletter offers
not only an in-depth look at each of
these trends, but a list of
securities poised to benefit from
these trends in the year ahead. In
this age of change, now is the time
to look ahead. To learn more about
Nick's picks, and to learn more
about High-Yield International,
please visit this link.
|
|
|
|
|
| FREE
six times a week, our newsletter contains actionable investment ideas from
today's leading market analysts. |
|
|
|
|
The Next 433 Banks That Could Fail

There are 7,932 banks in the United
States -- and 433 are in immediate danger of failing.
If you have cash in any of
these banks your savings could be at
risk.
|
|
|
|
|