High-Yield Investment #1:
New Flyer Industries (NFYIF)
American cities are growing more crowded by the day. And if you’ve ever sat in Washington, D.C. rush-hour traffic, then you understand our country’s ever-growing need for mass transit. So with the U.S. population expanding, municipalities have increased spending to improve mass transportation. This, in turn, has boosted demand for mass transit vehicles, greatly benefiting companies in this industry.
Enter New Flyer Industries (NFYIF). Based in Canada, New Flyer is the largest manufacturer and supplier of mass transit buses to North America, and it’s the leader in green and clean fuel systems, making it a central beneficiary of green, urban transit systems.
With rising demand for its products, the company currently has a $3.6 billion backlog of orders. Personally, I like the idea of investing in a company with a few years of business already in the works — especially with the U.S. economy expected to post slower economic growth over the next few quarters.
Structured an Income Deposit Security (IDS), New Flyer shares include a debenture and common stock. At its current price of around $8 per share, its current dividend yield is about 15% after adjusting for any Canadian withholding tax and currency exchange. And it pays a monthly dividend of nine cents per share.
High-Yield Investment #2: Provident Energy Trust (PVX)
Oil prices are back on the rise. From lows of around $35 per barrel earlier this year, crude prices have jumped more than 100% to its current price around $71. And as you know, oil demand has a tendency to outstrip supply and geopolitical events can arise at the drop of the hat — all of which has the potential to drive prices even higher.
Because I think oil prices are headed higher over the long term, it’s vital to have a portion of your portfolio dedicated to the energy sector. One way to gain exposure to increasing oil prices is with Provident Energy Trust (PVX).
Also based in Canada, Provident Energy Trust is the only Canadian energy trust with investments in oil and gas production with a 50%/50% mix, as well as energy infrastructure. Providing an excellent balance to PVR’s upstream business, the company’s midstream unit is Canada’s second-largest integrated natural gas liquids business with long-life physical assets like plants, pipelines and storage facilities.
The company’s integrated portfolio strategy provides excellent sustainability and a balanced-risk portfolio, which create long-term value. Currently, PVR pays a monthly dividend of five cents and sports a 13% yield.
Most financial advisories often treat income investing as an afterthought, offering one or two income plays in the 5% to 6% range. But at Cash Machine, Bryan Perry covers the entire universe of higher-yielding income opportunities, including preferred stocks, master limited partnerships, closed-end funds, convertible securities, hybrid financials and equity-linked securities – giving you dozens of opportunities to increase your income with the risk you feel comfortable with. See for yourself – test-drive Cash Machine risk-free for a full three months.