I always tell people that the best strategy for managing their portfolios is to use Portfolio Grader to make sure they own the very best stocks at any given point in time.
A common response is they need income from their portfolios whereas I’m a growth stock investor. Some think they can’t be buying the flashy no companies that don’t pay dividends because they need the cash flow to pay the bills.
How can investors find growth stocks that still have good yields to meet those income needs?
My answer is always the same. Use Portfolio Grader to make sure you have the very best high-yielding stocks. The solid fundamentals will keep the dividend safe, and you will have greater potential for gains on top of your dividends.
Star Gas Partners, L.P. (SGU)
Star Gas Partners, L.P. (SGU) is a great example of a sound company that also pays a high yield. SGU has become the largest retail distributor of natural gas by rolling up mom and pop operations into a sizable business. SGU also sells propane and provides heating and air conditions service as well as plumbing and home security systems.
The SGU strategy is working pretty well as earnings have grown by 35% a year on average for the past five years.
SGU is a great buy for income seeking investors as the shares yield 5.4% right now. The fundamentals of SGU are first rate, and Portfolio Grader has ranked SGU stock an “A” since February. SGU stock is a “strong buy” at the current price.
Alliance Resource Partners, L.P. (ARLP)
Coal may be unpopular with investors right now, but the folks running Alliance Resource Partners, L.P. (ARLP) have not let that stop them. Alliance runs ten coal mines in Illinois, Indiana, Kentucky, Maryland and West Virginia and also has a coal terminal in Mt. Vernon, Indiana.
Alliance sells coal to utility and industrial users and in spite of the dire headlines for the coal industry business is pretty good. Earnings have grown at about 24% a year on average the past five years and were up 50% in the most recent quarter. ARLP has posted four consecutive positive earnings surprises, and analysts have been raising their estimates for both 2014 and 2015.
Alliance’s fundamental excellence has been rewarded with an “A” ranking by Portfolio Grader since May. Income investors should be thrilled by the 5.29% yield. Alliance stock is a “strong buy” at the current price.
Vector Group Ltd (VGR)
One of the few things less popular than coal is cigarettes. Much like coal, cigarettes may be unpopular with the mainstream population, but lots of people are still buying them. Vector Group Ltd (VGR) makes cigarettes under several different brands and private labels across the U.S.
VGR also has a real estate brokerage operation and buys real estate for its own portfolio. Vector Group is a strange combination of businesses, but it is working. In the latest quarter, earnings soared by more than 130% and surpassed analyst expectations by more than 50% for a huge positive surprise.
Portfolio Grader upgraded VGR stock to an “A” back in March, and Vector Group stock is still a “strong buy” at today’s price. If you are looking for income, you will be delighted with Vector Group’s 7.4% dividend yield.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.