Thursday, October 28, 2010

Ten Income Stock for Your IRA Portfolio


Investopedia explains Income Stock as “an equity security that pays regular, often steadily increasing dividends, and offers a high yield that may generate the majority of overall returns. While there is no specific breakpoint for classification, most income stocks have lower levels of volatility than the overall stock market, and offer higher-than-market dividend yields. Income stocks may have limited future growth options, thereby requiring a lower level of ongoing capital investment. The excess cash flow from profits can therefore be directed back toward investors on a regular basis.”“Income stocks can come from any industry, but are most commonly found as companies operating within real estate (through real estate investment trusts, or REITs), energy sectors, utilities, natural resources and financial institutions.”

These stocks are good for use in an IRA because the speculator can reinvest the dividends into other securities. Here are 10 to watch;

1. Main Street Capital Corporation (Computer Symbol: MAIN) is a principal investment firm that primarily provides long-term debt and equity capital to lower middle market companies. Main Street's investments are made to support management buyouts, recapitalizations, growth financings and acquisitions of companies that operate in diverse industry sectors and generally have annual revenues ranging from $10 million to $100 million. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides "one-stop" financing alternatives to its portfolio companies. Moving to the NYSE. May be given new computer symbol. Sold recently for $16.67, yielding 8.82%.

2. Universal Insurance Holdings (Computer Symbol: UVE) has an operating margin of 31.4% on trailing 12 months sales of $210.9 million and sales growth of 17.4%. Sold recently for $4.68, yielding 8.00%.

3. Gladstone commercial Corporation (Computer Symbol: GOOD) is a real estate investment trust (REIT) that is engaged in the business of investing in and owning net leased industrial and commercial real property and making long term industrial and commercial mortgage loans.

4. Commonwealth REIT (CWH) formerly HRPT Properties Trust, is a real estate investment trust that invests in office and industrial properties. At December 31, 2009, the trust owned 518 properties with 66.8 million square feet, including 17.9 million square feet of leased industrial and commercial space in Oahu, HI. In addition, CWH owned 46.3% of the shares of Government Properties Income Trust, a former subsidiary now traded on the New York Stock Exchange under the symbol GOV.

5. Compass Diversified Holdings (CODI) reported widening margin, which is the difference between yield on earning assets and rate paid on funds, can indicate more successful management of assets and liabilities, lead to greater contribution to net interest income from a given level of loan growth.

6. Gladstone Capital Corp. (GLAD), a specialty finance company, operates as a closed-end, non-diversified management investment company. As of September 30, 2009, the company had about $364 million invested in 48 portfolio companies. As of that same date, around 66% of the aggregate value of the investment portfolio was senior debt, about 33% was senior subordinated debt (no investments in junior subordinated debt) and approximately 1% was in equity securities.

7. Gladstone Investment Corporation (GAIN) operates as a closed-end, non-diversified management investment company. The company has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, GAIN has elected to be treated as a regulated investment company (RIC) under the Internal Revenue Code of 1986, as amended. Gladstone Management Corporation serves as the investment adviser to the company.

8. ING Clarion Global Real Estate Income Fund (IGR) current distribution rate represents an annualized yield of 7.1% based on the closing market price of $7.61 on October 7, 2010 and a 6.4% yield on a closing NAV of $8.42 as of the same date. Future earnings of the Fund cannot be guaranteed and the Fund's dividend policy is subject to change. For more information on the Fund, please visit our website at www.ingclarionres.com.

9. Western Asset Managed Municipals Fund Inc., formerly Managed Municipals Portfolio Inc. is a non-diversified, closed-end management investment company. The fund's investment objective is to seek as high a level of current income exempt from federal income tax as is consistent with the preservation of principal. The fund seeks to achieve its objective by investing primarily in investment grade municipal debt securities issued by state and local governments, political subdivisions, agencies and public authorities (municipal obligations).

10. LTC Properties, Inc. (LTC) operates as a healthcare real estate investment trust (REIT). The company invests primarily in long-term care and other health care related properties through mortgage loans, property lease transactions and other investments.

Using the Sharebuilders Plan or another account that allows you to buy full and fractions of shares, you can accumulated a lot of money quickly using these 10 securities. Review the Williams Plan in my earlier blogs for more details.

You can see more information about these investments on my Facebook Account. Place in your Google Search “Facebook Darnell Williams bond investments”. Next time, we will explain how to look for the income stocks that has the best chance for appreciation while they pay you high dividends.

How Well is Darnell Doing?
As of October 28, 2010, my IRA has increased 25% Year to Date and for the end of the last 21 months, my portfolio has increased 76.84%. At the same time, the market, measured by the DJIA has increased 6.7% Year to Date.


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