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The Huge Potential and Dangers of Dividends

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A Dividend Payer I Do Like

I expect this same-kind of wealth-building income from a limited partnership I recently purchased for the personal portfolio of my toughest, most demanding high-net-worth client. The company is called Calumet Specialty Products (NASDAQ:CLMT), and it is a leading global producer of a range of highly specialized lubricating compounds and waxes that are helping drive a resurgence in U.S. manufacturing.

The units in the partnership — which you can buy and sell just like stocks — already yield an eye-popping 9.5%. And I have every reason to believe that dividend is safe. In fact, like Coca-Cola in the 1980s and 1990s, I fully expect it to grow over time.

In the most recently reported first quarter, the company’s top line sales rose a remarkable 93%, while bottom line earnings (used to pay out dividends) jumped an even more stunning 781%—nearly twice what analysts expected.

And analysts like me expect more of the same going forward. A recent, extremely well timed and prudent acquisition only increases my confidence in having bought this fantastic company for my client’s portfolio.

I have more information on CLMT and another high-dividend paying stock that I would love to share with you. The full details are in my latest report: “The Hidden New Rules of Dividends.” It is a must read for a generation of battered investors and your free copy is online now.

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