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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (35048)	8/18/2009 3:16:27 PM
From: E_K_S	Read Replies (2) \| Respond to of 78749

Hi Paul - Added to my FR-J preferred to secure the ($0.45/share) September dividend. This was a 30% increase in shares from my earlier buy (7/22/09) and provides me a blended dividend yield of 18%. I now have full positions in the IRA of HRP-D, BDN-C and FR-J. My exit strategy for the IRA preferred shares is to have these spin off their dividend income tax deferred and evaluate a sale if any of these trade above par value which is $25/share. I am tagging these as "bond" equivalents in the IRA portfolio which replace a portion of my zero coupon bonds. Even at current levels, the risk reward "value" seems decent. ============================================================== I continue to look for high dividend payers with good long term upside. Ship Finance International Limited (SFL) is one I continue to look at. If management feels that the Global pending debt crisis is past us, they may increase their dividend back to their previous levels. The first indication that this may occur is if their next dividend payment (sometime around 8/22) is paid in cash only w/o the option of receiving it in shares w/ a 5% discount to the market price. The company has sufficient cash flow to double their dividend amount but reduced it last year to conserve their cash. TECO Energy Inc. (TE) also is beginning to look interesting on any further sell off down to $10-$11. Their forward PE would be just below 9 if the average analysts estimates are accurate. TransCanada Corp. (TRP) at $26-$27 is on my watch list too. This would yield 5% at these prices. This Canadian company would benefit significantly from a U.S. energy policy that promotes NG. Hold this one in an IRA and you will avoid the foreign tax with holding. The upside is attractive at $40/share in 3 years when their Canadian/US pipeline is scheduled to be completed. PPL Corporation (PPL) is getting close to my buy in price of $27.60. This would yield 5% at that price. Stock continues to sell off and a break through $25.00 could occur if the company reduces their dividend again back to their 8/2005 level (before their 2:1 stock split). finance.yahoo.com