Hi Snowshoe - I have a similar problem. It's really tought to be a fiduciary right now, with stocks blowing up, P/Es till too high, and short term rates really low. Here are a few suggestions-
On the Equity side -
Shell oil, RD, pays about a 3.5% dividend at current prices.
Natural gas royalty trusts - see the web site www.mcdep.com for more detailed info. Look at San Jaun Trust SJT, HGT, and CRT. These pay out monthly based on the price of gas after a 3 month delay. Payouts run 6- 9 %.
Payouts will be increasing this winter as the price of gas rises.
There are also Canadian NG trusts. Look at ERF and NCN. Also there is a discussion thread on SI called Candian Reits and trusts.
Also on the equity side, utility stock s have ben hit very hard. You may want to look at Tampa Electric TE or El Paso EP. Dividends are now about 9%, and the stocks are recovering. Discussions and information on these can be found on SI at Big Dog's Boom Boom Room.
Also on the Equity side you might want a small slice of a gold stock or two. Newmont NEM , especailly below about $28, is an insitutional favorite.
With the current low interest rates, and the FED creating money, inflation is likely to be a future problem - that's why the energy and gold emphasis.
Bond side - Look at TIPS, the U.S. treasury inflation protected securties. Pimco Real return (PRRDX I think) has these, there is also a Vanguard version. Duration is pretty long, so you will have so sensitivity to rising interest rates.
For non-U.S. Bonds look at the BEGBX from American Century bond fund which has high quality Euro and Pound sterling bonds, mostly governments. RPIBX from T.Rowe Price is similar but a little more volitile. This give you some protection against a falling dollar. Yield is about 4-6 %, Duration is medium. Also, the ECB is expected to bring rates down - another positive.
Also, there are now exchage traded bond funds, like LTR, which have very low expenses.
Beyond that , look at some of the closed-end bond funds, especially if you need muni bonds for a taxable account.
Barron's has a Closed end table every week, and Mornigstar has some good info, you just have to dig around to find the closed end part of morningstar. Just don't pay a big premium to NAV.
What you are doing is difficult in today's environment.
Best Regards, energyplay |
