Three “Safe” Income Stocks

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Follow us on Youtube, Twitter and Facebook View this email in your browser ( Facebook ( Twitter ( YouTube ( ** Three “Safe” Income Stocks ———————————————————— Dear Reader, With suppressed interest rates from the Federal Reserve, many income investors are starving for yield, however, with stocks at an all time high, it`s tough for conservative investors to find safe income stocks.

Here are 3 very safe stocks paying dividend yields higher than 4.5%.

What do we consider a safe stock 1. A business that can survive an economic depression.

2. Shareholder friendly track record.

3. Dominates their industry.

Once this criteria is met, you simply have to buy at the right price and allow these great businesses time to become cash flow machines in your portfolio.

Safe Income Stock #1 – BP (NYSE: BP) with a 5.9% Yield Operating in 80 countries, BP produces 3.2 million and refines 1.8 million barrels of oil per day. The BP refining business is a great hedge against falling oil prices, since BP`s profit margins actually rise when they convert cheaper oil into gasoline. Although rising oil prices are better for BP since the majority of their business is in production, however, with plenty of cash and their refining business, this is a great stock for income investors to hold that will continue to pay out a healthy dividend.

Our Recommendation: Buy BP up to $45 with a 25% Trailing Stop Loss Safe Income Stock #2 – Government Properties (NYSE: GOV) with a 7.5% Yield It`s time to turn the government into your tenant, no we are not talking about section-8 housing, we are talking about tenants like the IRS and State Department. Currently GOV owns $2 billion worth of office space in 31 states. Its market cap is only $1.6 billion. Buying today not only gives you a hefty 7.5% yield, but we will be buying $1 worth of real estate for 80 cents.

Our Recommendation: Buy GOV up to $26 with a 25% Trailing Stop Loss Safe Income Stock #3 – Philip Morris (NYSE: PM) with a 4.6% Yield Philip Morris is one of the most shareholder friendly businesses, returning large amounts of cash each year to shareholders, with large company buyback programs to boot. PM is the perfect candidate for a great business that has some temporary problems. Doing business overseas, PM was hit really hard this year by a strong dollar.

Since 2008, PM has raised its dividend by nearly 120%, and the company has stated that its goal is to return 100% of its free cash flow to its shareholders through dividends and buybacks.

Our Recommendation: Buy PM up to $88 with a 25% Trailing Stop Loss Best Regards, Daniel Ameduri President, P.S.

I`ve recently set up my 5th True Hedge account. ( My entire family has one now – even our 7-month-old daughter. I`m not done either; one of the wealthiest Austrian economists I follow recently revealed he has 49 of these accounts for himself and his family.


Legal Notice:

This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.

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