Latest Articles

  March 2014March Issue PDF

Five High Yielding Equities 10 percent-plus
By Stephen Leeb, PhD

In the third issue of Leeb Income Millionaire Volume 2, we review five positions in three of our four diversified high-yielding portfolios. One is new this issue and is geared to profit from high-yield corporate debt. Two others have struggled but look ripe for big gains.

First, in the issue introduction, we review a natural gas storage play poised to profit from gas spreads.

In our High-Yield Equities portfolio, we discuss a utility facing challenges.

Thirdly, we discuss a new position likely to profit from lower rated income securities. The company provides shareholders with current income while mitigating the risk of owning lower-rated fixed income securities through diversification.

Finally, we highlight two positions that can profit from increasing prices in the energy patch. The first of these, an oil and gas producer, is held by some extremely successful long-term private equity investors, among the world’s best. This play could well profit from rising gas prices and volatility in the field. The second, a deepwater driller, stands to gain from renewed oil and gas drilling.
Read more

  February 2014February Issue PDF

Four High Yielding Equities 12 percent-plus
By Stephen Leeb, PhD

In the second issue of Leeb Income Millionaire Volume 2, we review four positions in three of our four diversified high-yielding portfolios. One was introduced in an Instant Alert in mid-December and is geared to profit from the U.S. natural gas boom and one is a brand new position, discussed for the first time in this issue.

First, in the High-Yield Equities portfolio, we explain a Canadian company likely to profit from rising global demand for food.

Second, we introduce a new equity geared to help small investors diversify their partnerships holdings in the energy patch, without the hassle of owning multiple positions. Here, as usual, we hope to help readers improve their returns and reduce risk. Plus, this particular offering comes with the advantage of decreasing the difficulty of tax filing complications come next April and tax time.

Finally, we highlight one energy issue introduced to readers last year that also just happens to be owned by some of the most successful long-term private investors anywhere. And as if there were not enticement enough, it’s managed by one of the energy industry’s hottest hands. We explain, as well, the advantages of another position geared to benefit from the richest natural gas fields in the U.S., first recommended in our inaugural issue last October. Read more

  January 2014January Issue PDF

Five Diverse Picks Yielding Up to 12 Percent-plus
By Stephen Leeb, PhD

In the first issue of Volume 2 of Leeb Income Millionaire, we review five positions in three of our four portfolios. One was first recommended in an Instant Alert last week. A second is a new position, this issue. Once again, we aim to help readers gain ground in today’s volatile market without much added risk.

We also rearrange the priority of our portfolios.

In our High Yield Equities, we discuss a recent addition tied to the housing industry, a key economic component of America’s recovery. Further we detail an equity formed as a business development company (“BDC”) arranged in part to achieve capital gains from its equity investments.

We also detail a high income play that makes investments across many service sectors worldwide, thereby producing a broad-based international source of income, including many blue-chip companies the world over.

In our partnerships positions, we recommend a new very high income security whose own diversified portfolio also provides a source of safe and growing income for readers. This, as a few new picks did last month, ranges outside of businesses exposed to commodity prices. It is in another field altogether, but provides many of the same tax and income benefits as those in the energy patch.

Finally, we review a position held since the launch of our service. Read more

  December 2013December Issue PDF

The Allure of Strong and Rising Payouts
By Stephen Leeb, PhD

Testifying recently before a congressional committee, Janet Yellen asserted that the job market and economy are performing “far short of their potential”—thereby telegraphing her plan, once head of the Fed, to hold the pedal to the metal on monetary policy. This great (and not unexpected) news reassured a wide swath of investors, boosted stocks and rekindled a lagging bond market. Even junk bonds have rallied to multiyear highs with yields from these usually dependable high-income generators falling to decade lows.

Income seekers, of course, must realize that decent yields from traditional sources like bonds and CDs will long remain a mirage on the ethereal horizon. For income today, the few remaining fertile fields to scour include high-yielding stocks, although investors cannot (and should not) just willy-nilly pick stocks and funds yielding the most. One needs a collection of high-yielders that also protect against a variety of risks and that, as a group, produce rising payouts.

The greatest risk facing the economy is deflation, and Yellen clearly understands that. In modern times, Japan suffered through deflation for more than a generation, from which it may only now be en route to a recovery. That provides a sobering enough picture of the potential deflationary toll.

Other risks include continued slow growth and inflation, and here Leeb Income Millionaire has you covered. The great majority of our high-yielding investments will continue to thrive even if growth remains slow. Read more

  November 2013November Issue PDF

Four Diverse Picks Yielding Up to 10 Percent-plus
By Stephen Leeb, PhD

In this issue, we detail four positions, one in each of our respective portfolios. All should help readers gain an extra edge in today’s market conditions without too much added risk.

In our Oil and Energy patch, we suggest a new coal producer, yielding more than 10 percent. A royalty trust structured as a Master Limited Partnership with extra tax advantages attending to the income, this outfit recently snapped up some new (and diversified) properties likely to boost income further.

We also detail a midstream natural gas transport and storage provider with ownership of and access to a large transport pipeline network likely to benefit as natural gas prices increase in the wake of the expected improvements in the European and Chinese economies, where gas is always imported, and always a lot more costly than in the U.S.

For readers who seek investments in businesses slightly less exposed to commodity prices while also poised to benefit from trends in consumer taste, we detail a solid company that profits from the widespread move toward more healthful diets and local food suppliers.

Last but not least, we investigate the advantages of one highly-focused specialty money manager, offering 30 years of expertise in a market normally difficult for the small to medium individual investor to research or access. Better still, we tell you how to join the ranks of those benefiting from their long-term success as this fund trades at a reasonable level relative to its net asset value. Read more

  October 2013October Issue PDF

Generous Dividends from A Perpetual Royal Legacy

By Stephen Leeb Ph.D.

History

By some measures, this extraordinary company can trace its roots back to 1670 and the rule of King Charles over England and much of North America. Charles granted royalty interests to various British companies to help them build businesses in big swaths land leased or granted by the crown, usually for finite durations. Companies received a fixed amount of time to develop their business, after which the land reverted to the crown.

But in 1670, King Charles made an exception in granting to Hudson’s Bay Company a perpetual royalty interest across a huge tract, some 1.5 million square miles encompassing the entire Hudson Bay watershed and nearly 40 percent of Canada. For as long as people walk the earth, Hudson Bay could collect royalties on activities on its royalty interest land, and develop prime locales to benefit the company alone. Read more

The Upstream MLP with a 10%+ Yield

By Kuen (Scott) Chan

One of our favorite MLPs, this upstream master limited partnership (MLP) is engaged in the acquisition, exploration and development of oil and gas properties in the U.S. As of yearend 2012, it had nearly 150 million oil-equivalent barrels (MMBoe) in proved reserves—reserves confidently expected to be profitably producible.

In recent years, management has focused on expanding exposure to higher-margin oil and NGLs. Since 2010, liquids (crude and NGL) have increased from just 35 percent of proved reserves to 53 percent at the end of the June 2013 quarter, driven by accretive acquisitions. Read more

High Income You Can Use

Canadian REITs

By Stephen Leeb Ph.D.

Most income investors well realize the advantages of owning REITs, or Real Estate Investment Trusts, as these often provide yields significantly higher than the market averages. Many investors, however, know little about a special subset in the category—Canadian REITs. Meanwhile, the huge demand for REITs resulted in their domination of Canada’s IPO market in 2012, although interest rate concerns largely dried up the flow of new Canadian REIT issues in 2013. Roughly 40 exist now, and all trade on Canadian exchanges. They still total less than half the 90 or so of their American counterparts. But a well-researched Canadian REIT selection or two could provide a good complement to the income portion of your portfolio. Read more

High Yields Where Few investors Look

By Gregory Dorsey

When assembling a portfolio, investors often overlook an important niche: closed-end mutual funds. These exchange-traded, actively managed funds have a lot to offer, however. In our inaugural issue of Leeb Income Millionaire, we want to introduce you to two such funds from a management company that specializes in income-oriented funds:… Read more