Tech May Be Hot, But Don't Neglect High-Yield Stocks
Geoffrey Seiler
On 8:25 am EST, Thursday December 10, 2009
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Companies: Apple Inc.Amazon.Com Inc.Google Inc.
Technology stocks have been hot this year, with the likes of Apple (Nasdaq: AAPL - News), Amazon (Nasdaq: AMZN - News), Google (Nasdaq: GOOG - News) and a host of others posting strong gains in 2009. Right now, investors are clamoring for tech stocks, but when it comes to putting together a balanced portfolio, don't neglect high-yield stocks.
Related QuotesSymbol Price Change
AAPL 196.98 +2.31
AMZN 131.38 -2.77
GOOG 595.73 +5.22
LINE 25.50 +0.18
MCHP 28.68 +0.43
When tech stocks were crumbling in 2008, solid dividend stocks were also down, but most held up much better than technology stocks and the overall market. Meanwhile, high-yield stocks certainly weren't sitting on the sidelines when the market rallied.
High-yield stocks from across industries have performed very well in 2009.
For example, oil and gas producer Linn Energy (Nasdaq: LINE - News) has returned over 90% this year. Linn is able to pay a consistently high dividend through its use of forward derivatives, as the company hedges nearly all of its production well in advance to create a nice visible cash flow stream that it then distributes to shareholders in the form of dividends.
Shipper Teekay LNG (NYSE: TPG - News) was another strong performer in 2009, returning more than 80% so far this year. Teekay operates on very long-term charters, and takes on no spot market risk. The company then grows through adding new vessels, which are already chartered out before they are built.
The energy and shipping sectors weren't the only places to find high-yield winners, though. Movie theatre operator Regal Entertainment (NYSE: RGC - News) is up over 45% year to date, while World Wrestling Entertainment (NYSE: WWE - News) is up about 60%.
You can also find a few high yielders in tech, like Microchip Technology (Nasdaq: MCHP - News), which designs, develops, manufactures, and markets specialized microcontrollers (MCUs) and semiconductors used in embedded control applications. MCUs are used in a wide variety of common, programmable household devices, such as remote controls, thermostats, and kitchen appliances, as well as in cars and other products. The stock is up 52% year to date.
As we look toward 2010, tech is a great place to be, and BullMarket.com's Recommended List has had its share of tech winners this year, including huge gains in Apple, Microsoft (Nasdaq: MSFT - News), and the since-acquired Omniture to name a few, but investors shouldn't forget about high-yield stocks heading into the new year.
Last year, the stock picks from our Nine High-Yield Stocks for 2009 special report generated an average 1-year return of 75.1%, easily outpacing the S&P 500 and the Nasdaq. This year's recently published report, 10 for '10: High-Yield Stock Picks for 2010 is bigger and better. For access to the 65-page report, examining each pick's dividend history, business activities, strengths, weaknesses, latest earnings report, and much more, visit BullMarket.com.
A daily investment service that identifies winning long-term growth, value, and income stocks, BullMarket.com's Recommended List of stocks outperformed the S&P 500 by nearly 15% in 2008 and was up over 35% YTD as of the end of November. BullMarket.com has recently published a special high-yield stock report that is available for free to all subscribers. Sign up for a free trial today and receive actionable market commentary, real-time trade alerts, access to 40+ high-quality recommended stocks, and the high-yield special report. |
