Updated report from Investing Daily cites record low debt costs and prudent management teams for bullish outlook on 5 high-yield stocks.
Online PR News – 06-September-2012 –With The New York Times reporting that the Euro Zone is officially in recession, investment analysts are predicting that interest rates will not increase in the short term. With interest rates holding at near-zero, investors are finding it increasingly difficult to generate sufficient income from bonds and fixed income investments.
However, while the current low-interest-rate environment disfavors bond investors, dividend-paying companies are benefitting from reduced debt costs and refinancing risks. In an update to its report on dividend-paying stocks, Investing Daily highlights 5 high-yield stocks that prudent investors should consider purchasing to preserve wealth in the upcoming 12 months.
The updated report highlights several themes for dividend investing in the next 12 months and uncovers 5 stocks offering above-average dividend yields without presenting high levels of risk.
“In the latest update to our report on high-yield stocks, we focused on companies where capital spending is on extremely high-percentage projects with virtually assured returns. We also screened companies where dividend coverage was strong enough to support the high dividends these companies were paying out,” stated report author Roger Conrad.
Stocks that are recommended in the report include:
Verizon Communications (NYSE: VZ): Verizon was included in the report for its industry-low churn rate, growing profitability and ability to extend its lead over rivals in multiple key metrics, including reliability, capacity and speed. The report is also bullish on Verizon’s low cost of capital and long history of dividend increases.
Exelon Inc. (NYSE: EXC): Exelon was included in the report for its large portfolio of electricity generation capacity, much of which is considered low-carbon-emitting, “clean energy.” The report notes that the company has hedged a significant share of its selling prices for scheduled output through 2013, which should reduce volatility in revenues going forward. The report concludes that Exelon’s recent merger with Constellation Energy Group should help the combined company achieve significant economies of scale.
Penn Virginia Resource Partners LP (NYSE: PVR): The one master limited partnership highlighted in the report, Penn Virginia Resource Partners LP was included in the report for its strong coverage ratio and ability to increase distributions in multiple consecutive fiscal quarters.
In addition to in-depth profiles of the stocks above, the report also examines two high-yield Canadian dividend stocks that have gone mostly unnoticed by American investors.
“We believe that market conditions in the second half of 2012 will be significantly different than they were in the first half of the year. We wanted to provide individual investors with a comprehensive guide that will help them preserve wealth and generate income, which is why we took a top-down approach to find the 5 dividend stocks we believe are poised to do well in the second half of the year,” said Conrad.
The report can be accessed by visiting: http://www.investingdaily.com/glp/30487/High-Yield-Stocks-that-Pay-Dividends-5-High-Dividend-Stocks-that-the-Prudent-Dividend-Investor-Must-Own.html
Investing Daily provides in-depth investment advice to help independent investors achieve a secure and rewarding financial future. The site’s coverage focuses on finding the most profitable emerging trends in the investment universe to bring investors pragmatic and in-depth coverage of the names that are taking advantage of these opportunities.