Monday, February 18, 2013

Kiplinger's 25 Income over 4%

Kiplinger Magazine highlighted 25 choices that yield over 4% to provide income.  We own or have clients that own four out of the 25, but be careful about the advice you recieve, alot of these fund are high income, aka junk bond funds, which by nature invest in companies that are less creditworthy.  Obviously when it comes to credit quality, we start at the top with Triple-AAA, which would be goverment bonds backed by the US Gov't and it's powers of taxation.  Next would be Double-AA, which are typically municipal bonds and some select corporations.  The third level down would be Single A, which would typically be well known corporations.  Then we would move to Triple BBB and then BB.  The lower grade you go, the higher risk and thus higher the yield or income.  However, all income isn't created equal, so make sure you check with your financial advisor before taking a position, particularly in high yield bonds.  In addition, a few of these positions utiltize leverage, which can be good and bad, it's like fuel for a car, it can make the car go faster, but it can also make it blow up. 

NLY-Annaly Capital 13.52%  (we own)
GOV-Gov't Income Properties Trust 5.72%
HCN-Health Care Reit 4.74%
O-Realty Income Corporation 4.08% (pays monthly)
BPT-BP Prudhoe Bay Royalty Trust 11.43%
BIP-Brookfield Infrastructure Partners 3.82%
PAA-Plains All American 4.01%  (still own in certain portfolios)
SPH-Suburban Propane Partners 8.16% Yield
AEP-American Electric Power 4.17%
NGG-National Grid (ADR) 5.98%
NTT-Nippon Telegraph & Telephone ADR 4.04%
VNR-Vanguard Natural Resources 10.77%  (not affiliated with "Vanguard" the mutual fund company)
FAX-Aberdeen Asia Pacific Income 5.68%
AWF-Alliance Bernstein Global High Income 7.10%
KTF-DWS Municipal Income 5.72%
PFF-I shares Preferred Stock 5.95%
NUV-Nuveen Municipal Income Common 4.27%
PCN-Pimco Corporate & Income Strategy 7.21%
BJBHX-Artio Global High Income 6.94%
DLTNX-Doubleline Total Return 5.63%  (we own)
FAGIX-Fidelity Capital & Income 5.30%
FNMIX-Fidelity New Markets Income 4.28%  (certain clients own)
LSBRX-Loomis Sayles Bond Retail 5.45%
MWHYX-Metropolitan West High Yield Bond 6.60%

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