Commodity investing has been extremely popular in recent years as investors have discovered the benefits that these investments can offer for an individual portfolio. Exposure to commodities offers benefits like low correlation, inflation hedges, and also heavy exposure to some of the world’s fastest growing markets. But there is still something of a disconnect between income investors and commodities, as these investments are typically seen as growth plays or simply left for active traders. But those who overlook commodity stocks with even mediocre yields could be missing out [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later].
At first glance, it can be easy to overlook dividend yields when making investment decisions. For example, seeing a 2% yield on a stock may seem minuscule, but consider this; a portfolio with a baseline investment of $100,000, earning an average 2% annually off of dividends will appreciate to approximately $122,000 in 10 years, and nearly $150,000 in 20 years, assuming the gains are re-invested and no appreciation in stock price. In fact, a recent study conducted by Standard & Poor’s revealed that dividend components were responsible for 44% of the total return in the last 80 years of the S&P 500′s history. From 1950 until 2010, an investment of one dollar with dividends and reinvestment would have performed eight times better than a dollar invested in a non-dividend security; that dividend invested dollar would be worth roughly $500 today.
Dividends can also be used as a partial hedge in bear markets. For instance, the last 10 year have been coined “The Lost Decade” for the U.S. stocks, as equities finished lower at the end of 2009 than they began in 2000. The S&P 500 returned -2.7% in the 2000′s, the worst decade in over 50 years. But, the average dividend distribution for the 2000′s was 1.8%, cutting losses from -2.7% to just -0.9%. And in decades where average stock prices rose (which is every decade from 1950 until 2000), gains are only furthered by strong dividends. Simply put, dividends provide stability even when markets stumble [see also Three Commodities Dividend Lovers Must Own].
With both dividends and commodities offering a laundry list of benefits on their own, combining the two makes for one powerful investment strategy. Below, we outline 12 commodity stocks with strong dividends to prepare your portfolio for the coming year:
1. Alerian MLP Index ETN (AMJ)
MLPs have become ultra-popular dividend options as they typically offer juicy yields. But owning individual MLPs can be dangerous and can also have adverse tax effects come April. This ETN tracks an index created to provide a comprehensive benchmark for investors to track the performance of the energy MLP sector. As an ETN it will not incur tracking error and will not issue a K-1 to its investors. Note that it will be at the credit risk of its issuer, but considering that JP Morgan is the name behind the fund, investors don’t have a whole lot to worry about [see also MLPs: CEFs, ETPs, or Mutual Funds?].
Top holdings of this product include Enterprise Products, Enbridge Energy, and investor favorite Kinder Morgan. The fund has a market cap topping $3 billion and an average daily volume over one million, making it one of the most popular funds on the market. What may be most impressive about this fund is that it has returned over 8% for investors this year while many other equities have been in the gutter. Finally, AMJ has a current yield of 5.17%; while that may be on the lower end of MLP standards, consider the diversification benefits and safety that this ETN offers.
2. Alumina Ltd. (AWC)
Alumina is an Australian-based company that mines bauxite, refines alumina, and smelts aluminum. The company has a 40% equity interest in Alcoa World Alumina, a joint venture with Alcoa, and is one of the most powerful names in the aluminum industry. With control of about 17% of the world’s alumina market, it is no surprise to see AWC as one of the biggest names on the ASX (note that it is cross-listed on the NYSE). For those who are unfamiliar, alumina is simply aluminum oxide, the key component in aluminum production.
As far as the stock is concerned, AWC is sporting a market cap of $3.4 billion with a decent daily volume that falls just below 350,000. Its current P/E ratio of 58.44 may be a turn off for some, but it comes with a healthy dividend yield. AWC currently pays out a yield of 4.1% and makes for a strong play on the aluminum market in the coming year.
3. BP Prudhoe Bay Royalty Trust (BPT)
BPT is a branch of British Petroleum that is stationed in New York City. The company operates as a royalty trust and has major assets inf the Prudhoe Bay Oil Field, which is the largest in North America. In total, the field covers over 213,000 acres and had originally held somewhere around 25 billion barrels of crude. In fact, its size doubles the next biggest oil field on the continent, making BPT a prime target to play one of the most important oil sources in the world. The stock was listed as one of the top four dividend payers from 1997-2007 by the Motley Fool and over that time period gained approximately 1,369% for its very fortunate investors [see also The Guide To The Biggest Companies In Every Major Commodity Sector].
The stock itself has a market cap of $2.5 billion with a healthy EPS of $9.46. Note that BPT trades less often than most of the options on this list, with an ADV just over 93,000, but some investors may be looking for a more stable fund that does not have issues with active traders becoming market makers. BPT, most importantly, is paying out a current yield of 6.9%, adding a handsome income stream to any investment portfolio.
4. ConocoPhillips (COP)
One of the six “supermajor” oil companies around the world, ConocoPhillips formed as a result of the 2002 merger between Conoco Inc. and Phillips Petroleum Company. Stationed in Houston, the company is home to nearly 30,000 employees and has operations that span over roughly 40 countries. It is the second-largest U.S. refiner and has the domestic capacity of about two million barrels per day. Aside from its crude exploration and production, the firm also has significant operations based in natural gas-based products as most major oil companies are known to do [see also Crude Oil Guide: Brent Vs. WTI, What’s The Difference?].
COP has a current market cap just shy of $100 billion and a ADV of 9.4 million, making it a strong large cap play for your portfolio. The stock has a payout ratio of just 32%; a much more sustainable figure then some of the the other options on this list. For those looking for a steady yield, COP’s 3.6% payout looks to be a rock-solid bet for years to come.
5. Devon Energy Corporation (DVN)
Devon focuses its operations on natural gas and is one of the largest processors on the continent. Based in Oklahoma City, the company focuses its operations and pipelines in North America, making it a play on economies close to home. DVN ranks as a Fortune 500 company and is home to over 5,000 employees. The stock is a bit smaller than some of the other options, with a market cap of $27 billion, but it still has a healthy ADV of nearly four million. Note that other than a slight miss last quarter, Devon has had strong earnings management which bodes well for the stock in the long run [see also 25 Ways To Invest In Natural Gas]
DVN has a current dividend yield of 1%, and while that makes it one of the smallest on this list, it is not without its upside. Devon has a current payout ratio of just 6%, leaving plenty of room for dividend growth in the coming years as the natural gas market is only predicted to expand from here on out.
6. Market Vectors Junior Gold Miners ETF (GDXJ)
This ETF tracks an index which provides exposure to a global universe of publicly traded small and medium-capitalization companies that generate at least 50% of their revenues from gold and/or silver mining. The fund, which charges 0.56% in expenses, is home to over 75 securities that are based around the world. In fact, GDXJ features a U.S. allocation of just 1.5%, the majority of its holdings lie in Canada and Australia, a noteworthy exposure for investors. Though the fund focuses on small cap holdings, it should come as a sigh of relief that the majority of them are based in developed and stable economies. Top holdings in the fund include Alamos Gold, AuRico Gold, and Silvercorp Metals [see also Three Reasons Why Gold Is Overvalued].
The fund is another member of the billion dollar club, with total assets coming in around $2.3 billion and a healthy trading volume of 3.2 million to make for one of the most popular and liquid ETFs on the market. But of course, the most important factor to consider is GDXJ’s robust dividend yield. The fund is currently paying out a SEC 30 day yield of 9.72%. Though the fund is quite volatile and suffered a rough 2011, its low price and high yield make it an attractive play for the year.
7. Monsanto Co. (MON)
Monsanto is one of the biggest names in the agribusiness sector and has their hands in a wide variety of household products. They are the world’s leading producer of herbicide glyphosate, a weed-killer most commonly seen in the product “Roundup”. But the company is also well known for their production of genetically engineered seeds as they supply roughly 90% of the entire U.S. market. With a stranglehold on a relatively popular market, many investors feel that Monsanto is a great long-term play for a portfolio [see also Invest Like Jim Rogers With These Three Agriculture Stocks].
The stock features a market cap of $38 billion with a P/E of 24; a little high for some investors. The stock, which is 80% held by institutions, has featured healthy revenue growth as of late with a large amount of cash to cover any emergencies or illiquidity issues they may have. MON has a solid set of key financials and tops it all off with a nice yield of 1.7%.
8. Plum Creek Timber Co. Inc. (PCL)
Founded in 1989, Plum Creek is the largest private landowner in the states with its headquarters in Seattle. It is important to note that the fund is a REIT, which can turn off some investors immediately as these securities carry their own set of risks. The firm manages timberlands while producing products like plywood, fiberboard, and a number of other wood-based goods. With a market cap of $5.9 billion, PCL is one of the smallest companies on the list, though it is still relatively large by market standards [see also Three Things Wall Street Journal Didn’t Tell You About Commodities].
The stock itself features a ADV of 1.6 million with strong quarterly earnings and revenue growth. It should be noted that over 8% (roughly $13M shares) of its shares are currently held short, meaning that there is a pretty significant audience out there that believes this stock will fail. A bet on PCL can also be thought of as a bet on the construction industry which has faced notable headwinds over the year, but with the economy showing some signs of brightness, PCL could be in for a strong 2012. The stock has a current yield of 4.7%, making it one of the better income options on the list.
9. PetroChina Co. Ltd. (PTR)
PetroChina is currently the third largest company in the world, with only Apple and Exxon Mobil beating their figures. The firm is the largest oil producer in China and its stock is traded in Hong Kong, New York, and more recently in Shanghai. Though stationed in Beijing, its cross-listing on three powerful exchanges made PetroChina the first company to ever reach a trillion dollar market cap. The company has had a rough year, but with a firm grasp on the world’s largest country, its growth prospects for the coming years remain strong [see also Crude Oil On Fire: Examining The Commodity’s Rise].
The stock has a relatively low ADV of just 240,000, but a healthy P/E of 10.3 to accompany it. Its vital stats seem pretty stable, with strong earnings and revenue growth as well as a fair amount of cash on hand. PTR pays out a dividend yield of 3.5% and figures to be a nice blend of income and growth for the future.
10. Transocean Ltd. (RIG)
Though the company is probably still known for the Deepwater Horizon Gulf spill early last year, it has a massive upside potential for income investors. Transocean specializes in offshore drilling activities that are often in difficult to reach or harsh environments. With a number of reserves sitting at the bottom of bodies of water, RIG may have a strong future ahead. The Swiss firm is home to nearly 140 offshore drilling rigs and has several ultra-deep platforms currently in the works. Transocean has a strong global reach, with offices and operations reaching nations like Norway, Scotland, Brazil, Malaysia, and others [see also Why The IEA Is Backing Nuclear Power].
RIG has a market cap of $14.5 billion and trades roughly 7.1 million shares each day. With its stock still below its pre-spill levels, a number of investors may see RIG as a cheap option in today’s market environment. The company pays out a juicy yield of 6.9%, thought that number has recently fluctuated between 7% and 8%.
11. Southern Copper Corp. (SCCO)
Southern Copper is one of the largest publicly traded copper miners in the world. The company is majority owned by Mexican conglomerate Grupo Mexico and aside from being one of the leading copper producers, SCCO is also one of the primary producers of molybdenum, zinc, silver, lead, and gold. Its primary operations are based in Mexico, Peru, and Chile, where the aforementioned commodities are found in plentiful supply. Though the company does most of its business in emerging markets, it is important to note that it is based in Phoenix, so it is not fully exposed to unstable economies [see also 13 Ways To Invest In Copper].
SCCO has a current market cap of about $26.4 billion, but many investors are more concerned with its recent performance. The stock has been on a downward trend for the last year, losing 36.4% since its highs in January, losses that have not been offset by its dividend yield. SCCO has a massive 8.9% yield that has the potential to be a major plus to your portfolio, but its recent performance is certainly something to keep in mind before investing.
12. Silvercorp Metals Inc. (SVM)
Based in Vancouver, Silvercorp focuses on the exploration and development of lands with silver deposits. The company is the largest silver producer in China, as it focuses a good portion of its business there, though it is still a major force in Canada. Aside from its hefty silver production, Silvercorp also has mines that are focused on lead and zinc, giving it a diversified spread across the metals industry. Note that as a mining firm, SVM will likely be more volatile than silver prices given the fact that most miners present something of a leveraged play on their underlying products [see also 25 Ways To Invest In Silver].
SVM comes in looking quite small in comparison to the rest of this list, with a market cap of just $1.2 billion. But its 5.5 million shares traded daily ensure that is is still quite popular among investors looking to get silver exposure. The fund, as expected, features a relatively high beta of 1.62 and has lost nearly 43% in the trailing year. With silver prices enduring a rough year, it comes as no surprise to see SVM struggle, but this may create an opportunity for the coming year. SVM pays out a nice dividend yield of 1.3% and while it cannot match some of the other payouts on the list, silver’s battered position makes SVM an enticing play.
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Disclosure: Jared is long BP.
[...] This past year has been plagued with volatility, as global instability has put a major damper on commodity markets. Thought the first few months looked promising, the latter 30 day periods were plagued by euro-zone woes and choppy markets. As if commodities weren’t volatile enough to begin with, throwing in shaky markets only exacerbates things. It was a tough year for a number of commodity investors, but that doesn’t mean that it was without its gains. Gold, for example, has had a stellar year compared to most investments, bringing solid gains in portfolios that have been hard pressed to find any breathing room. One of the most interesting statistics to look at on the year is where the money was flowing and which assets saw the most investing activity. Below, we outline the most popular commodities of 2011 to help investors find the most liquid options for the coming year [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Income investing has only grown in recent years as flailing markets and low interest rates have made dividends strategies some of the most lucrative opportunities on the market. This ETF tracks an index which is designed to measure the performance of U.S. common stocks that have a history of increasing dividends for at least ten consecutive years. Top holdings of the fund include McDonald’s, IBM, and Coca-Cola. VIG has a YTD return over 5%, a lot more than most funds can say on this volatile year. On top of strong gains the fund has a current 30 day SEC yield of 2.3%. This fund saw inflows of $3.7 billion on the year, a 95% growth from 2010′s inflows. On top of the heavy inflows, AUM more than doubled to $8.5 billion from its favorable performance and inflows [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Stocks started off the day strong as hopes that the Fed would bring good news had most major indexes up over 1% upon market open. But as Ben Bernanke and company usually do, they left the door open for further QE, sparking a massive sell-off that quickly threw equities back into negative territory. The Dow lost 66 points while the S&P 500 sink by nearly 0.90%. The greenback had a second strong day against the euro which has yet to halt its skid over the past few weeks. Gold, though starting off the day in positive territory, took a harsh hit of -1.9%, putting the precious metal below $1,650/oz for the first time in recent memory. One of the only winners on the day, surprisingly, was crude oil, which jumped by 2.5% to close above the triple digit mark [see also 12 High-Yielding Commodities For 2012]. [...]
[...] With the rapid expansion and development of the ETP industry, investors can now choose from a vast selection of products that offer both broad-based and sector-specific commodity exposure. With the exchange-traded product structure, investors have the ability to gain access to commodities without having to encounter the difficulties and drawbacks of opening a futures account. One of the most appealing broad-based commodity products on the market is the E-TRACS UBS Bloomberg CMCI ETN (UCI), which offers exposure to a basket of 26 different commodity futures contracts of varying maturities [see also 12 High-Yielding Commodities For 2012]. [...]
[...] With the rapid expansion and development of the ETP industry, investors can now choose from a vast selection of products that offer both broad-based and sector-specific commodity exposure. With the exchange-traded product structure, investors have the ability to gain access to commodities without having to encounter the difficulties and drawbacks of opening a futures account. One of the most appealing broad-based commodity products on the market is the E-TRACS UBS Bloomberg CMCI ETN (UCI), which offers exposure to a basket of 26 different commodity futures contracts of varying maturities [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Today was another dismal trading session as euro fears continued to plague markets. The Dow lost over 130 points while the NASDAQ and S&P 500 lost 1.6% and 1.1% respectively. Though many were hoping for a “Santa rally” to close out the year, markets have been riddled with instability as the last few weeks have been focused on the progress, or lack thereof, of the euro zone. Today saw the EUR/USD rate fall below $1.3 for the first time in recent memory, sparking a sell-off that only intensified as the day came to a close [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Today was another dismal trading session as euro fears continued to plague markets. The Dow lost over 130 points while the NASDAQ and SP 500 lost 1.6% and 1.1% respectively. Though many were hoping for a “Santa rally” to close out the year, markets have been riddled with instability as the last few weeks have been focused on the progress, or lack thereof, of the euro zone. Today saw the EUR/USD rate fall below $1.3 for the first time in recent memory, sparking a sell-off that only intensified as the day came to a close [see also 12 High-Yielding Commodities For 2012]. [...]
[...] For a brief moment, it seemed like Friday was going to end the week on a positive note, but a sell-off midway through the day ensured that markets would finish relatively flat. All in all, the Dow finished out the day down 2 points and the S&P 500 gained just 0.3%. The euro was able to hold on to its $1.30 level against the greenback, though that comparison is likely to remain volatile over the coming days. Oil had a relatively volatile day, with its prices swinging back and forth between big gains and losses. Crude eventually finished the day up just 11 cents/barrel. Gold, which has been through a tough week, finally posted strong numbers with a jump of 1.5% [see also 12 High-Yielding Commodities For 2012]. [...]
[...] For a brief moment, it seemed like Friday was going to end the week on a positive note, but a sell-off midway through the day ensured that markets would finish relatively flat. All in all, the Dow finished out the day down 2 points and the SP 500 gained just 0.3%. The euro was able to hold on to its $1.30 level against the greenback, though that comparison is likely to remain volatile over the coming days. Oil had a relatively volatile day, with its prices swinging back and forth between big gains and losses. Crude eventually finished the day up just 11 cents/barrel. Gold, which has been through a tough week, finally posted strong numbers with a jump of 1.5% [see also 12 High-Yielding Commodities For 2012]. [...]
[...] For a brief moment, it seemed like Friday was going to end the week on a positive note, but a sell-off midway through the day ensured that markets would finish relatively flat. All in all, the Dow finished out the day down 2 points and the S&P 500 gained just 0.3%. The euro was able to hold on to its $1.30 level against the greenback, though that comparison is likely to remain volatile over the coming days. Oil had a relatively volatile day, with its prices swinging back and forth between big gains and losses. Crude eventually finished the day up just 11 cents/barrel. Gold, which has been through a tough week, finally posted strong numbers with a jump of 1.5% [see also 12 High-Yielding Commodities For 2012]. [...]
[...] For a brief moment, it seemed like Friday was going to end the week on a positive note, but a sell-off midway through the day ensured that markets would finish relatively flat. All in all, the Dow finished out the day down 2 points and the SP 500 gained just 0.3%. The euro was able to hold on to its $1.30 level against the greenback, though that comparison is likely to remain volatile over the coming days. Oil had a relatively volatile day, with its prices swinging back and forth between big gains and losses. Crude eventually finished the day up just 11 cents/barrel. Gold, which has been through a tough week, finally posted strong numbers with a jump of 1.5% [see also 12 High-Yielding Commodities For 2012]. [...]
[...] This past week was a rough one for equities, as euro fears overshadowed global data to send stocks into a tailspin. It seems that after taking the weekend to mull over the euro debt deal, investors were less than impressed with the final outcome. The smoking gun probably came from the U.K. refusing to participate, showing that the deal did not do enough to meet the needs of each European nation. The week saw gold and oil take hard hits, as commodity trading was particularly volatile. The coming week will feature a variety of key economic data that will hopefully pull markets from their slide and finish out 2011 on a positive note [see also 12 High-Yielding Commodities For 2012]. [...]
[...] This past week was a rough one for equities, as euro fears overshadowed global data to send stocks into a tailspin. It seems that after taking the weekend to mull over the euro debt deal, investors were less than impressed with the final outcome. The smoking gun probably came from the U.K. refusing to participate, showing that the deal did not do enough to meet the needs of each European nation. The week saw gold and oil take hard hits, as commodity trading was particularly volatile. The coming week will feature a variety of key economic data that will hopefully pull markets from their slide and finish out 2011 on a positive note [see also 12 High-Yielding Commodities For 2012]. [...]
[...] This past week was a rough one for equities, as euro fears overshadowed global data to send stocks into a tailspin. It seems that after taking the weekend to mull over the euro debt deal, investors were less than impressed with the final outcome. The smoking gun probably came from the U.K. refusing to participate, showing that the deal did not do enough to meet the needs of each European nation. The week saw gold and oil take hard hits, as commodity trading was particularly volatile. The coming week will feature a variety of key economic data that will hopefully pull markets from their slide and finish out 2011 on a positive note [see also 12 High-Yielding Commodities For 2012]. [...]
[...] In recent years, issuers have began something of a cost battle by slashing prices to gain an edge on a similar fund offered by a competitor. Many were unsure how this strategy would turn out, as the ETFs who saw costs drop would now make less money for the issuer unless they attracted a significant amount of assets. While it has not worked in every case, there are three clear-cut examples of cost-cutting generating massive inflows for 2011. Below, we outline these three specific instances and how big of a difference a few basis points can make [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Wall Street started off another week in the dumps, as markets took a nosedive to end today’s trading session. By the time the day came to a close, the Dow had lost just over 100 points while the S&P 500 suffered losses of 1.2%. Gold experienced yet another rough day as investors have seemingly lost confidence in what was once considered one of the last safe haven investments on the market. Many feel that a flailing euro and uncertain equities means that gold may be headed for losses, with the precious metal dipping 0.2% on the day. Despite the losses that most equities saw, crude oil was able to jump about 0.4% as the commodity remains at what many feel is a depressed price [see also 12 High-Yielding Commodities For 2012]. [...]
[...] The past few weeks have seen oil enjoy a meteoric rise. The fossil fuel surged from roughly $75/barrel, all the way to $102/barrel in a recent peak. But breaking the triple digit barrier didn’t last long for crude, as global instability and a lack of investor confidence moved in to create pressures for the commodity yet again. The past few trading days have been miserable for oil, as it is now fighting with prices in the low $90s. Given the recent strength exhibited by WTI, the commodity’s low prices now present themselves as an interesting play. By many accounts, crude was undervalued even when it was above $100 and the coming year may send prices even higher, making recent lows an enticing opportunity for oil [see also 12 High-Yielding Commodities For 2012]. [...]
[...] want to maintain a relatively high allocation in this lucrative corner of the commodity market [see 12 High-Yielding Commodities For 2012]. This ETN also employs an interesting methodology that is intended to reduce the adverse impacts [...]
[...] The past few weeks have seen oil enjoy a meteoric rise. The fossil fuel surged from roughly $75/barrel, all the way to $102/barrel in a recent peak. But breaking the triple digit barrier didn’t last long for crude, as global instability and a lack of investor confidence moved in to create pressures for the commodity yet again. The past few trading days have been miserable for oil, as it is now fighting with prices in the low $90s. Given the recent strength exhibited by WTI, the commodity’s low prices now present themselves as an interesting play. By many accounts, crude was undervalued even when it was above $100 and the coming year may send prices even higher, making recent lows an enticing opportunity for oil [see also 12 High-Yielding Commodities For 2012]. [...]
[...] This year saw a surge in popularity for commodity investing. As the years have passed, investors have seen the benefits of investing in the risky, but lucrative asset class. Commodities provide a protection against inflation as well as a low correlation to equities. One of the biggest problems within the industry was the lack of options available to investors just a few years ago. It used to be that only those with a complex futures account were able to add these securities to their portfolios. Now, there are hundreds of products to help even the smallest investor gain access to their favorite commodity investment. Below, we outline all of the commodity exchange traded products that hit the market this year [see also 12 High-Yielding Commodities For 2012]. [...]
[...] It’s no secret that most commodities had a rough 2011; even top performers like gold have not been without their blips. So when it comes time to examine your portfolio for the coming year, choosing the right commodity can be a tall order. First, it is important to note that no matter which asset you choose, it will more than likely be volatile and require active monitoring as well as stop-loss protections. But while these investments may be volatile, their benefits to an overall portfolio have earned them the right to make up anywhere from 5% to 10% of your holdings. For investors searching for the right move for 2012, we outline three enticing commodity plays to help prepare your portfolio for a clean slate after a tough year [see also 12 High-Yielding Commodities For 2012]. [...]
[...] It’s no secret that most commodities had a rough 2011; even top performers like gold have not been without their blips. So when it comes time to examine your portfolio for the coming year, choosing the right commodity can be a tall order. First, it is important to note that no matter which asset you choose, it will more than likely be volatile and require active monitoring as well as stop-loss protections. But while these investments may be volatile, their benefits to an overall portfolio have earned them the right to makeup anywhere from 5% to 10% of your holdings. For investors searching for the right move for 2012, we outline three enticing commodity plays to help prepare your portfolio for a clean slate after a tough year [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Commodity Trading Trends: Is Crude Oil Cheap? – Seeking Alpha The past few weeks have seen oil enjoy a meteoric rise. The fossil fuel surged from roughly $75/barrel, all the way to $102/barrel in a recent peak. But breaking the triple digit barrier didn’t last long for crude, as global instability and a lack of investor confidence moved in to create pressures for the commodity yet again. The past few trading days have been miserable for oil, as it is now fighting with prices in the low $90s. Given the recent strength exhibited by WTI, the commodity’s low prices now present themselves as an interesting play. by many accounts, crude was undervalued even when it was above $100 and the coming year may send prices even higher, making recent lows an enticing opportunity for oil [see also 12 High-Yielding Commodities For 2012]. [...]
[...] 2012 has kicked off much like the previous year ended, full of uncertainty. Though investors are hoping to wipe the slate clean and begin a fresh new year, not all are convinced that markets will break their rut anytime soon. Commodity investors are especially eager to forget what was a dismal 2011 for most assets. While it is true that as many as 90% of commodity investors lose money, it seems like that was especially true last year, where a number of commodities racked up significant losses. As investors sort their way through new picks for 2012, we outline three of the best commodity stories from around the web this week, helping to educate readers on commodity markets in today’s environment [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Why ALUM Will Be In Focus: This young fund from Global X, seeks to replicate an index which tracks the performance of the largest and most liquid listed companies that are active in some aspect of the aluminum industry. Top holdings of the fund include names like Rio Tinto (RIO), but more importantly for this week, Alcoa (AA). Today will see the earnings announcement from the heavy hitting aluminum firm, and the outlook isn’t good. Alcoa is predicted to report EPS of 0.01 with revenues of about $5.8 billion. It is important to note that the company missed its last estimate by over 30%, putting extra pressure on today’s release. With Alcoa accounting for over 9% of ALUM, the ETF will be in the limelight for the majority of the week as it reacts to this important data [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Why ALUM Will Be In Focus: This immature account from Global X, seeks to replicate an index which tracks a opening of a largest and many glass listed companies that are active in some aspect of a aluminum industry. Top land of a account embody names like Rio Tinto (RIO), though some-more importantly for this week, Alcoa (AA). Today will see a gain proclamation from a complicated attack aluminum firm, and a opinion isn’t good. Alcoa is likely to news EPS of 0.01 with revenues of about $5.8 billion. It is critical to note that a association missed a final guess by over 30%, putting additional vigour on today’s release. With Alcoa accounting for over 9% of ALUM, a ETF will be in a limelight for a infancy of a week as it reacts to this critical information [see also 12 High-Yielding Commodities For 2012]. [...]
[...] This year has gotten off to a quiet start relative to the busy end that 2011 saw. But that doesn’t mean that there is a shortage of market moving events to talk about. One of the biggest stories has been the euro, which has been under enormous pressure to start off the year. Others are focused on this year’s elections and wondering how a political shift in Washington could affect trading on Wall Street. Unfortunately, yesterday brought bad news on the European front, which may end up having a big impact on this week’s trading [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Exchange-traded products have become the preferred instrument for many investors looking to add core, as well as tactical, commodities exposure to their portfolios. The “toolbox” continues to expand as investors have more than 130 commodity ETPs to choose from, with some allowing for targeted exposure to a specific resource, while many instruments offer broad-based access. One of the newest commodity-basket ETNs on the market is the iPath Pure Beta S&P GSCI-Weighted ETN (SBV), which has accumulated a little over $5 million since its launch in mid-2011 [also see 12 High-Yielding Commodities For 2012]. [...]
[...] Exchange-traded products have become the preferred instrument for many investors looking to add core, as well as tactical, commodities exposure to their portfolios. The “toolbox” continues to expand as investors have more than 130 commodity ETPs to choose from, with some allowing for targeted exposure to a specific resource, while many instruments offer broad-based access. One of the newest commodity-basket ETNs on the market is the iPath Pure Beta S&P GSCI-Weighted ETN (SBV), which has accumulated a little over $5 million since its launch in mid-2011 [also see 12 High-Yielding Commodities For 2012]. [...]
[...] Crude oil is arguably the most widely-traded commodity on the market and it is also one of the most significant. Much of the past year saw crude sway violently back in forth much like general equities, but oil prices have recently been enjoying a nice upward momentum that began in early October. With prices now broken through the triple digit barrier once again, investors look to the price drivers for crude to see if the commodity is overvalued or if now may be a good time to buy in. Perhaps the most important factor to consider in trading crude today is the tensions and issues revolving around Iran [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Crude oil is arguably the most widely-traded commodity on the market and it is also one of the most significant. Much of the past year saw crude sway violently back in forth much like general equities, but oil prices have recently been enjoying a nice upward momentum that began in early October. With prices now broken through the triple digit barrier once again, investors look to the price drivers for crude to see if the commodity is overvalued or if now may be a good time to buy in. Perhaps the most important factor to consider in trading crude today is the tensions and issues revolving around Iran [see also 12 High-Yielding Commodities For 2012]. [...]
[...] SPY has long been the king of exchange traded products. Hitting the market in 1993, this fund has amassed nearly $100 billion in assets making it not only the largest ETF in the world, but also one of the largest funds available to investors. Its ultra low expenses and massive daily volume have allowed it to be both a trading instrument as well as an integral part of long term portfolios. But for the past few years, the fund has been in a stiff competition with its equal weighted counterpart, the S&P Equal Weight ETF (RSP) [see also 12 High-Yielding Commodities For 2012]. [...]
[...] SPY has long been the king of exchange traded products. Hitting the market in 1993, this fund has amassed nearly $100 billion in assets making it not only the largest ETF in the world, but also one of the largest funds available to investors. Its ultra low expenses and massive daily volume have allowed it to be both a trading instrument as well as an integral part of long term portfolios. But for the past few years, the fund has been in a stiff competition with its equal weighted counterpart, the S&P Equal Weight ETF (RSP) [see also 12 High-Yielding Commodities For 2012]. [...]
[...] SPY has long been the king of exchange traded products. Hitting the market in 1993, this fund has amassed nearly $100 billion in assets making it not only the largest ETF in the world, but also one of the largest funds available to investors. Its ultra low expenses and massive daily volume have allowed it to be both a trading instrument as well as an integral part of long term portfolios. But for the past few years, the fund has been in a stiff competition with its equal weighted counterpart, the S&P Equal Weight ETF (RSP) [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Equity markets have been on a bullish streak all week as positive economic data on the home front coupled with encouraging developments overseas have helped to restore investors’ confidence. Positive momentum on Wall Street has translated into weakness for the U.S. dollar, helping commodities to inch higher across the board. With earnings season well underway, the spotlight shifts to mining giant Freeport McMoRan Copper & Gold and firm’s 2011 year-end results [see also 12 High Yielding Commodities For 2012]. [...]
[...] Markets have been enjoying a rather strong week despite the mixed bag of earnings that have been announced. It seem that the winners are outshining the losers as the S&P 500 was able to top 1,300 for the first time since last year’s U.S. debt downgrade. Futures markets have been particularly active, with a number of contracts moving in both positive and negative directions. Over the past five days, orange juice futures, for example, are up over 18%, while natural gas futures have tanked by roughly 13.5%. In an effort to keep our readers more informed on today’s commodity markets, we outline three of the best commodity articles from around the web this past week [see also 12 High-Yielding Commodities For 2012]. [...]
[...] 2011 was a tough year for commodities, with the majority of investors watching their positions turn sour as equity markets wreaked havoc in the commodity space. But while finding gains for the year was a tall order, it is clear that investors are looking more and more to exchange traded products to make a play on the commodity space. Inflows to commodity ETPs surged this past year for a number of products, as these investment vehicles are quickly becoming the go-to space for exposure to this asset class [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Over the last several years ETFs have become popular tools for active investors seeking to take advantage of short-term mispricings in the market; the average daily trading volumes on many of the most popular-exchange-traded products clearly indicates that ETFs are widely used by day traders who measure their holding periods in minutes rather than years. Of course, ETFs also continue to be tremendously powerful tools for the set of the market for which they were originally designed: long-term, buy-and-hold investors. For those in it for the long haul, ETFs can represent a way to tap into a compelling investment thesis that is expected to play out over the course of several years or even decades, without conducting company-specific research or taking on considerable company-specific risk [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Over a final several years ETFs have turn renouned collection for active investors seeking to take advantage of short-term mispricings in a market; a normal daily trade volumes on many of a many popular-exchange-traded products clearly indicates that ETFs are widely used by day traders who magnitude their holding durations in mins rather than years. Of course, ETFs also continue to be tremendously absolute collection for a set of a marketplace for that they were creatively designed: long-term, buy-and-hold investors. For those in it for a prolonged haul, ETFs can paint a approach to daub into a constrained investment topic that is approaching to play out over a march of several years or even decades, but conducting company-specific investigate or holding on substantial company-specific risk [see also 12 High-Yielding Commodities For 2012]. [...]
[...] 2011 was a tough year for commodities, with the majority of investors watching their positions turn sour as equity markets wreaked havoc in the commodity space. But while finding gains for the year was a tall order, it is clear that investors are looking more and more to exchange traded products to make a play on the commodity space. Inflows to commodity ETPs surged this past year for a number of products, as these investment vehicles are quickly becoming the go-to space for exposure to this asset class [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Over the last several years ETFs have become popular tools for active investors seeking to take advantage of short-term mispricings in the market; the average daily trading volumes on many of the most popular-exchange-traded products clearly indicates that ETFs are widely used by day traders who measure their holding periods in minutes rather than years. Of course, ETFs also continue to be tremendously powerful tools for the set of the market for which they were originally designed: long-term, buy-and-hold investors. For those in it for the long haul, ETFs can represent a way to tap into a compelling investment thesis that is expected to play out over the course of several years or even decades, without conducting company-specific research or taking on considerable company-specific risk [see also 12 High-Yielding Commodities For 2012]. [...]
[...] As earnings season takes the spotlight for markets, investors will anxiously await the reports of some of the most important global firms over the coming trading days. Thus far, earnings have been a mixed bag with a number of companies both hitting and missing their marks. Big names like General Eelctric and Google fell short, while others like Bank of America and Wells Fargo were able to beat the Street and inspire some investor confidence. Now that the majority of leading financial institutions have reported, this week will focus on companies from other sectors. Today will see the report from the biggest name in the tech segment, Apple (AAPL) [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Commodities have obvious appeal to active investors looking to generate profits from short-term price movements; the volatility of this asset class is ideal for risk-tolerant individuals who actively monitor their positions. But commodities may also have appeal to the long-term, buy-and-hold crowd; this asset class has the potential to bring both diversification and return enhancement to traditional stock-and-bond portfolios [see also 12 High-Yielding Commodities For 2012]. [...]
[...] As earnings season takes the spotlight for markets, investors will anxiously await the reports of some of the most important global firms over the coming trading days. Thus far, earnings have been a mixed bag with a number of companies both hitting and missing their marks. Big names like General Eelctric (GE) and Google (GOOG) fell short, while others like Bank of America and Wells Fargo were able to beat the Street and inspire some investor confidence. Now that the majority of leading financial institutions have reported, this week will focus on companies from other sectors. Today will see the report from the biggest name in the tech segment, Apple (AAPL) [see also 12 High-Yielding Commodities For 2012]. [...]
[...] In the midst of earnings season, many hoped that we could take a few weeks to focus on the U.S. economy and put international affairs on the backburner. But yesterday saw news that there is great concern that the Greek debt deal may fall through and that the S&P is likely to peg the nation with a “Selective Default” tag. With the euro zone once again gobbling up headlines, earnings from Jonson & Johnson, Yahoo!, McDonald’s, and others were afterthought as major indexes dragged to open up Tuesday’s session. Still, with a number of major firms slated to announce their earnings in the coming days, investors can only hope that strong numbers will help overshadow a flailing euro [see also 12 High-Yielding Commodities For 2012]. [...]
[...] The ETF industry has long been known for the many advantages that it offers over competing mutual funds and other investment vehicles. One of the most significant upsides that exchange traded products have is their relatively low expenses; investors can gain exposure to asset classes of all kinds for a reasonable price. In fact, cheap ETFs have become so popular in recent years, that issuers have even started competing by slashing expense ratios to try and get a leg up on their more expensive competition, and some evidence shows that the strategy is paying off well. But while many investors are concerned with how much an investment will cost them, few stop to think about what that particular investment yields for its issuer [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Commodities have obvious appeal to active investors looking to generate profits from short-term price movements; the volatility of this asset class is ideal for risk-tolerant individuals who actively monitor their positions. But commodities may also have appeal to the long-term, buy-and-hold crowd; this asset class has the potential to bring both diversification and return enhancement to traditional stock-and-bond portfolios [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Commodities have obvious appeal to active investors looking to generate profits from short-term price movements; the volatility of this asset class is ideal for risk-tolerant individuals who actively monitor their positions. But commodities may also have appeal to the long-term, buy-and-hold crowd; this asset class has the potential to bring both diversification and return enhancement to traditional stock-and-bond portfolios [see also 12 High-Yielding Commodities For 2012]. [...]
[...] The ETF industry has long been known for the many advantages that it offers over competing mutual funds and other investment vehicles. One of the most significant upsides that exchange traded products have is their relatively low expenses; investors can gain exposure to asset classes of all kinds for a reasonable price. In fact, cheap ETFs have become so popular in recent years, that issuers have even started competing by slashing expense ratios to try and get a leg up on their more expensive competition, and some evidence shows that the strategy is paying off well. But while many investors are concerned with how much an investment will cost them, few stop to think about what that particular investment yields for its issuer [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Commodities have obvious appeal to active investors looking to generate profits from short-term price movements; the volatility of this asset class is ideal for risk-tolerant individuals who actively monitor their positions. But commodities may also have appeal to the long-term, buy-and-hold crowd; this asset class has the potential to bring both diversification and return enhancement to traditional stock-and-bond portfolios [see also 12 High-Yielding Commodities For 2012]. [...]
[...] In the midst of earnings season, many hoped that we could take a few weeks to focus on the U.S. economy and put international affairs on the backburner. But yesterday saw news that there is great concern that the Greek debt deal may fall through and that the S&P is likely to peg the nation with a “Selective Default” tag. With the euro zone once again gobbling up headlines, earnings from Jonson & Johnson, Yahoo!, McDonald’s, and others were afterthought as major indexes dragged to open up Tuesday’s session. Still, with a number of major firms slated to announce their earnings in the coming days, investors can only hope that strong numbers will help overshadow a flailing euro [see also 12 High-Yielding Commodities For 2012]. [...]
[...] In the midst of earnings season, many hoped that we could take a few weeks to focus on the U.S. economy and put international affairs on the backburner. But yesterday saw news that there is great concern that the Greek debt deal may fall through and that the S&P is likely to peg the nation with a “Selective Default” tag. With the euro zone once again gobbling up headlines, earnings from Jonson & Johnson, Yahoo!, McDonald’s, and others were afterthought as major indexes dragged to open up Tuesday’s session. Still, with a number of major firms slated to announce their earnings in the coming days, investors can only hope that strong numbers will help overshadow a flailing euro [see also 12 High-Yielding Commodities For 2012]. [...]
[...] In the midst of earnings season, many hoped that we could take a few weeks to focus on the U.S. economy and put international affairs on the backburner. But yesterday saw news that there is great concern that the Greek debt deal may fall through and that the S&P is likely to peg the nation with a “Selective Default” tag. With the euro zone once again gobbling up headlines, earnings from Jonson & Johnson, Yahoo!, McDonald’s, and others were afterthought as major indexes dragged to open up Tuesday’s session. Still, with a number of major firms slated to announce their earnings in the coming days, investors can only hope that strong numbers will help overshadow a flailing euro [see also 12 High-Yielding Commodities For 2012]. [...]
[...] The ETF industry has long been known for the many advantages that it offers over competing mutual funds and other investment vehicles. One of the most significant upsides that exchange traded products have is their relatively low expenses; investors can gain exposure to asset classes of all kinds for a reasonable price. In fact, cheap ETFs have become so popular in recent years, that issuers have even started competing by slashing expense ratios to try and get a leg up on their more expensive competition, and some evidence shows that the strategy is paying off well. But while many investors are concerned with how much an investment will cost them, few stop to think about what that particular investment yields for its issuer [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Investing the equity side of the equation isn’t always pure play on agriculture, but it can make for a number of interesting opportunities that other investment vehicles simply don’t offer. Equities that focus on these commodities will most often consist of farming and production companies which can offer a number of advantages over other options. A fair amount of these companies offer strong dividend options and high liquidity for traders of all kinds [see also 12 High-Yielding Commodities For 2012]: [...]
[...] The rumors have been swirling for years: Facebook will IPO next month, next quarter, next year. But each time it seems that investors are disappointed with no such event. However, 2012 may finally see the long-awaited IPO from the social networking giant. Before you roll your eyes and click out of the page, consider some new developments that make this event very likely. Other than unnamed sources confirming an IPO in early to mid 2012, the company’s private stock has been frozen for the past three days, a move that typically coincides with a filing to go public in the near future. ”Facebook and companies who do this don’t want to expose themselves to lawsuits related to the fact that some people had it before others and were able to trade on it,” Sam Hamadeh, CEO of private company research firm PrivCo, told Bloomberg. “The best way to protect yourself is to have no one able to trade” [see also 12 High-Yielding Commodities For 2012]. [...]
[...] As earnings season comes to an end, investors will have one more week to focus on blue chip quarterly results to help guide their trades and positions. Last week saw earnings come in as a mixed bag, but that all changed on Friday when unemployment figures shattered the mold and dropped to 8.3% with 243,000 jobs added in January. But this is just the beginning; in order to prove that we are fully on the rebound, we need several more months of strong growth as well as falling unemployment. For now, however, investors are happy to finally have some good news in a relatively lackluster week. As we look ahead to the coming trading days, we outline three ETFs in particular that investors would do well to keep their eye on [see also 12 High-Yielding Commodities For 2012]. [...]
[...] As earnings season comes to an end, investors will have one more week to focus on blue chip quarterly results to help guide their trades and positions. Last week saw earnings come in as a mixed bag, but that all changed on Friday when unemployment figures shattered the mold and dropped to 8.3% with 243,000 jobs added in January. But this is just the beginning; in order to prove that we are fully on the rebound, we need several more months of strong growth as well as falling unemployment. For now, however, investors are happy to finally have some good news in a relatively lackluster week. As we look ahead to the coming trading days, we outline three ETFs in particular that investors would do well to keep their eye on [see also 12 High-Yielding Commodities For 2012]. [...]
[...] to the coming trading days, we outline three ETFs in particular that investors would do well to keep their eye [...]
[...] It should also be noted that dividend-weighted indexes (as well as dividend yield-weighted indexes) will exclude stocks that do not make distributions. In some cases, that means missing out on impressive returns; AAPL, which has skyrocketed in recent years, won’t be found in any dividend-weighted ETF [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Few things can withstand the test of time, and perhaps even fewer will be able to retain their monetary worth in today’s unprecedented economic landscape. The recent financial meltdown has brought upon a seemingly endless expansion of the money supply and our government has racked up a debt that bears a frightful resemblance to the toxic balance sheets which sparked the fire to begin with. Woes in the debt burdened currency block overseas have only added to the list of troubles; fears of inflation are lurking as the uncertainty surrounding the health of the global financial market continues to plague investors’ confidence [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Income investors groaned at the news of the Fed’s recent decision to hold rates in their near-zero rate rut until late 2014. That could mean nearly three years until we see an uptick in interest rates which points to three years of scrapping for steady income around markets as interest rates of 0.25% are less than enticing for most investors. But for those who live and die by dividend yields, there are still a number of options available, especially in the commodity space. Investing on the equity side of commodities can offer low correlation (though not nearly as low as the direct commodity itself) while providing a handsome income stream [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Income investors groaned at the news of the Fed’s recent decision to hold rates in their near-zero rate rut until late 2014. That could mean nearly three years until we see an uptick in interest rates which points to three years of scrapping for steady income around markets as interest rates of 0.25% are less than enticing for most investors. But for those who live and die by dividend yields, there are still a number of options available, especially in the commodity space. Investing on the equity side of commodities can offer low correlation (though not nearly as low as the direct commodity itself) while providing a handsome income stream. [...]
[...] If it seems like these two funds are nearly identical on the surface, its because they are. Both funds track physical gold bullion with GLD representing approximately 1/10th an ounce of gold while IAU represents about 1/100th an ounce of the precious metal. When it comes to liquidity, GLD takes the cake. The fund has a very active options market, almost eight times the assets of IAU, and a daily volume that is nearly double its smaller competitor. This makes GLD a prime trading instrument and it has certainly produced massive returns for a number of investors. But as it was stated earlier, this article focuses on long-term investors, where IAU has a clear edge [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Income investors often feel that commodities are not sound investments for their portfolio as something like a futures contract on gold offers no yield. But there are plenty of other ways to make a play on commodities while adding the safety net of dividend yield. Some turn to stocks while others are more partial to the security that index funds offer, namely, exchange traded products. ETFs offer investors immediate diversification through a single ticker while holding onto added benefits of intraday liquidity, transparency, and some favorable tax treatments. A number of ETFs that choose to focus on commodities come with handsome yields attached. Below, we outline the highest yielding commodity products [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Income investors often feel that commodities are not sound investments for their portfolio as something like a futures contract on gold offers no yield. But there are plenty of other ways to make a play on commodities while adding the safety net of dividend yield. Some turn to stocks while others are more partial to the security that index funds offer, namely, exchange traded products. ETFs offer investors immediate diversification through a single ticker while holding onto added benefits of intraday liquidity, transparency, and some favorable tax treatments. A number of ETFs that choose to focus on commodities come with handsome yields attached. Below, we outline the highest yielding commodity products [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Few stocks receive more attention from the financial presses than Apple (AAPL), the tech giant that has made a remarkable recovery from life support in the early 1990s to become one of the largest companies in the world. The stock has long been an investor favorite based on consumers’ insatiable appetite for almost every new product that the company throws their way. But from an investing standpoint, the first two months of the year have been nothing short of stellar, as the stock has shot up over 28%, or more than $100 per share. But perhaps the biggest buzz about the tech giant has not been about its performance, but the rumors of a special, one-time, distribution to its investors [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Posted on February 28, 2012 FB.Event.subscribe('edge.create', function(response) { _gaq.push(['_trackEvent','SocialSharing','Facebook - like button',unescape(String(response).replace(/+/g, " "))]); }); Few stocks receive more attention from the financial presses than Apple (AAPL), the tech giant that has made a remarkable recovery from life support in the early 1990s to become one of the largest companies in the world. The stock has long been an investor favorite based on consumers’ insatiable appetite for almost every new product that the company throws their way. But from an investing standpoint, the first two months of the year have been nothing short of stellar, as the stock has shot up over 28%, or more than $100 per share. But perhaps the biggest buzz about the tech giant has not been about its performance, but the rumors of a special, one-time, distribution to its investors [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Few stocks receive more attention from the financial presses than Apple (AAPL), the tech giant that has made a remarkable recovery from life support in the early 1990s to become one of the largest companies in the world. The stock has long been an investor favorite based on consumers’ insatiable appetite for almost every new product that the company throws their way. But from an investing standpoint, the first two months of the year have been nothing short of stellar, as the stock has shot up over 28%, or more than $100 per share. But perhaps the biggest buzz about the tech giant has not been about its performance, but the rumors of a special, one-time, distribution to its investors [see also 12 High-Yielding Commodities For 2012]. [...]
[...] value consistency of dividends and others that zero in on the most attractive dividend yields [see 12 High Yielding Commodities]. A few of the more popular dividend ETFs that could be impacted by any changes to tax policy [...]
[...] Today capped off a rather strong week on a rather sour note. The Dow was able to end flat, while the S&P 500 sank 0.3%. Despite its losses, the S&P posted its third consecutive weekly gain as well as its eighth winning week out of the past nine. This week was primarily focused on U.S. data, which came in strong by most accounts, but Friday’s sell-off did well to dampen gains made in earlier sessions. Commodities were in heavy focus this week, as these assets presented some of the most significant movements of any investment [see also 12 High-Yielding Commodities For 2012]. [...]
[...] well to dampen gains made in earlier sessions. Commodities were in heavy focus last week, as these assets presented some of the most significant movements of any [...]
[...] AAPL is up 43.4%% on the year, as the stock gained massive momentum after first quarter earnings that blew away Wall Street’s wildest expectations. Since then, there has been no stopping the company, as a cash pile of nearly $100 billion prompted rumors of a dividend payout, a first for the company. Though an income stream or one time payment has yet to be offered to investors, AAPL has been in the limelight recently due to the buzz being created about its newest tablet device. Today will see the release of the new iPad, which has already sold out in a number of locations and is expected to make a huge buzz in the tech world [see also 12 High-Yielding Commodities For 2012]. [...]
[...] AAPL is up 43.4%% on the year, as the stock gained massive momentum after first quarter earnings that blew away Wall Street’s wildest expectations. Since then, there has been no stopping the company, as a cash pile of nearly $100 billion prompted rumors of a dividend payout, a first for the company. Though an income stream or one time payment has yet to be offered to investors, AAPL has been in the limelight recently due to the buzz being created about its newest tablet device. Today will see the release of the new iPad, which has already sold out in a number of locations and is expected to make a huge buzz in the tech world [see also 12 High-Yielding Commodities For 2012]. [...]
[...] AAPL is up 43.4%% on the year, as the stock gained massive momentum after first quarter earnings that blew away Wall Street’s wildest expectations. Since then, there has been no stopping the company, as a cash pile of nearly $100 billion prompted rumors of a dividend payout, a first for the company. Though an income stream or one time payment has yet to be offered to investors, AAPL has been in the limelight recently due to the buzz being created about its newest tablet device. Today will see the release of the new iPad, which has already sold out in a number of locations and is expected to make a huge buzz in the tech world [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Its been more than four years since financial markets took their unprecedented nose dive, and yet some investors still cringe at the mere mention of the year that most wish they could forget. The crash of 2008 shook markets around globe, hammering down prices in nearly every corner of the investable universe. On March 9th 2009, investors were finally able to see the light at the end of the tunnel as rock-bottom markets prepared to make their turnaround. The pickup spurred investors’ appetites for riskier asset classes, luring many to the lucrative world of commodity investing. For the most part, commodities can find a place in almost everyone’s portfolio; the asset class can provide uncorrelated returns and diversification benefits, as well as serve as a potential hedge against inflationary pressures [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Its been more than four years since financial markets took their unprecedented nose dive, and yet some investors still cringe at the mere mention of the year that most wish they could forget. The crash of 2008 shook markets around globe, hammering down prices in nearly every corner of the investable universe. On March 9th 2009, investors were finally able to see the light at the end of the tunnel as rock-bottom markets prepared to make their turnaround. The pickup spurred investors’ appetites for riskier asset classes, luring many to the lucrative world of commodity investing. For the most part, commodities can find a place in almost everyone’s portfolio; the asset class can provide uncorrelated returns and diversification benefits, as well as serve as a potential hedge against inflationary pressures [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Its been more than four years since financial markets took their unprecedented nose dive, and yet some investors still cringe at the mere mention of the year that most wish they could forget. The crash of 2008 shook markets around globe, hammering down prices in nearly every corner of the investable universe. On March 9th 2009, investors were finally able to see the light at the end of the tunnel as rock-bottom markets prepared to make their turnaround. The pickup spurred investors’ appetites for riskier asset classes, luring many to the lucrative world of commodity investing. For the most part, commodities can find a place in almost everyone’s portfolio; the asset class can provide uncorrelated returns and diversification benefits, as well as serve as a potential hedge against inflationary pressures [see also 12 High-Yielding Commodities For 2012]. [...]
[...] With equity markets on a winning streak, many investors have brushed aside the commodity asset class as it has lagged behind in the new year. Nonetheless, this corner of the market remains abundant with opportunities and the potential to deliver impressive gains for those with a keen eye and a stomach for risk. Industrial metals, and copper in particular, have attracted interest lately as global economic growth expectations have begun to improve thanks to encouraging developments in the U.S. coupled with evaporating uncertainties in Europe [see also 12 High-Yielding Commodities For 2012]. [...]
[...] equity markets on a winning streak, many investors have brushed aside the commodity asset class as it has lagged behind in the new year. Nonetheless, this corner of the market remains abundant [...]
[...] The ongoing evolution of the ETF industry has brought forth a host of previously difficult-to-reach asset classes right at the fingertips of mainstream investors. Commodities in particular have attracted serious interest lately as the exchange-traded product structure makes it easy and cost effective to access this corner of the market. The energy segment of the commodities market presents investors with lucrative rewards, although the risks can be overwhelming for those unfamiliar with the underlying fundamentals and futures trading mechanics [see 12 High-Yielding Commodities For 2012]. [...]
[...] this corner of the market. The energy segment of the commodities market presents investors with lucrative rewards, although the risks can be overwhelming for those unfamiliar with the underlying fundamentals and [...]
[...] Ever since markets crashed in 2008, investors have been slowly increasing their risk appetites, shifting towards more lucrative and risky asset classes such as commodities. Some investments in this category have flourished, while others haven’t fared so well. Natural gas is perhaps the first cringe-worthy commodity that comes to mind as investors witnessed its unprecedented free fall over the last few years. But with NG and some of the other big losers comes a potential buy in opportunity at rock bottom prices. Whether you’re looking for a bargain or simply want to avoid these bad-performing funds, we outline 3 of the worst performing commodity ETPs over the last three years. Note that this list is a bit modified in that we only chose one fund from each commodity type [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Ever since markets crashed in 2008, investors have been slowly increasing their risk appetites, shifting towards more lucrative and risky asset classes such as commodities. Some investments in this category have flourished, while others haven’t fared so well. Natural gas is perhaps the first cringe-worthy commodity that comes to mind as investors witnessed its unprecedented free fall over the last few years. But with NG and some of the other big losers comes a potential buy in opportunity at rock bottom prices. Whether you’re looking for a bargain or simply want to avoid these bad-performing funds, we outline 3 of the worst performing commodity ETPs over the last three years. Note that this list is a bit modified in that we only chose one fund from each commodity type [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Now that the first quarter of 2012 is in the books, investors will reflect on their holdings to see if it is time to make any adjustments. While most equities turned in one of the best first quarters in recent memory, not all commodities were quite as lucky. As always, commodity price drivers often vary considerably from general equities, so it should not come as a surprise to see some of the more severe losses that some of these assets have posted. For those looking for the next cheap buy, or commodities that have been on a tear, we outline some of the best and worst performing futures from the first quarter of this year [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Now that the first quarter of 2012 is in the books, investors will reflect on their holdings to see if it is time to make any adjustments. While most equities turned in one of the best first quarters in recent memory, not all commodities were quite as lucky. As always, commodity price drivers often vary considerably from general equities, so it should not come as a surprise to see some of the more severe losses that some of these assets have posted. For those looking for the next cheap buy, or commodities that have been on a tear, we outline some of the best and worst performing futures from the first quarter of this year [see also 12 High-Yielding Commodities For 2012]. [...]
[...] The past week was a relatively unstable one for major equities, as markets teetered back and forth based on economic data and outlooks from all over the world. But earnings season will go into full throttle this week, as some of the world’s biggest and most significant firms detail their most recent quarter. So far, we have seen big news from companies like Google, who beat their marks and also announced a share split, shooting the stock upwards. Friday watched both Wells Fargo and JP Morgan beat their targets, though China’s weak GDP result overshadowed any win in the financial sector. With the coming week packed full of major earnings, we will keep a close eye on three sector SPDRs that would make any arachnophobic cringe [see also 12 High-Yielding Commodities For 2012]. [...]
[...] sector. With the coming week packed full of major earnings, we will keep a close eye on three sector SPDRs that would make any arachnophobic [...]
[...] In general, dividend investing methodologies can be divided into 3 broad sub categories: dividend weighting, dividend consistency, and dividend yield focused funds. For example, WisdomTree’s Large Cap Dividend Fund (DLN) tracks a cap- and dividend-weighted index, which gives the largest allocations to companies with the largest cash dividends. In contrast, State Street’s SPDR S&P Dividend ETF (SDY) employs the dividend consistency strategy, focusing only on stocks that have increased dividends every year for at least 25 consecutive years [see also 12 High-Yielding Commodities For 2012]. [...]
[...] The past week was riddled with volatility as equities failed to establish any kind of meaningful pattern. With equities in disarray, commodities futures suffered, as they tend to exhibit a fair amount of volatility on their own, despite market conditions. A number of major commodities posted losses for the trailing week, as news from Europe coupled with a weak Chinese GDP report prompted some rough sell-offs. One of the hardest hit commodities came from the softs family. Sugar futures endured a bumpy week, as Sugar #11 futures lost 5.4% while #16 contracts tacked up losses of nearly 6.1% [see also 12 High-Yielding Commodities For 2012]. [...]
[...] The past week was riddled with volatility as equities failed to establish any kind of meaningful pattern. With equities in disarray, commodities futures suffered, as they tend to exhibit a fair amount of volatility on their own, despite market conditions. A number of major commodities posted losses for the trailing week, as news from Europe coupled with a weak Chinese GDP report prompted some rough sell-offs. One of the hardest hit commodities came from the softs family. Sugar futures endured a bumpy week, as Sugar #11 futures lost 5.4% while #16 contracts tacked up losses of nearly 6.1% [see also 12 High-Yielding Commodities For 2012]. [...]
[...] If it seems like these two funds are nearly identical on the surface, its because they are. both funds track physical gold bullion with GLD representing approximately 1/10th an ounce of gold while IAU represents about 1/100th an ounce of the precious metal. when it comes to liquidity, GLD takes the cake. The fund has a very active options market, almost eight times the assets of IAU, and a daily volume that is nearly double its smaller competitor. this makes GLD a prime trading instrument and it has certainly produced massive returns for a number of investors. But as it was stated earlier, this article focuses on long-term investors, where IAU has a clear edge [see also 12 High-Yielding Commodities for 2012]. [...]
[...] Despite Friday’s relatively large miss in GDP, stocks were able to post a week in the black as strong earnings helped major indexes make a run higher. Unfortunately, it seems that we are still at the mercy of Europe as any news about Spanish debts will rock markets. The coming week features the tail end of earnings season, as a number of the world’s largest companies have already reported. Perhaps the most notable result came form Apple (AAPL) who crushed analyst estimates and saw their share price skyrocket as a result. With another busy week ahead of us, we detail three ETFs to keep a close eye on as trading patterns unfold [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Income investing has become particularly popular in recent years, as near-zero interest rates have left many starved for attractive yields. As such, many investors turned to equity ETFs paying out high dividends to find a stable source of income. But looking through past distributions and current yield metrics is not always the most accurate method for evaluating an ETF’s yield, as there are several nuances to these products that need to be taken into account, including capital gains [see also 12 High-Yielding Commodities For 2012]. [...]
[...] With this major earnings announcement on tap, today’s ETF to watch will be the Health Care Select Sector SPDR (XLV). This fund, which measures the U.S. pharmaceutical sector, reserves PFE as its second-biggest holding, granting nearly 12% of assets to the stock. If PFE misses their estimates or provides a gloomy outlook based on Lipitor, look for the stock and this ETF to take a hit on the day. But a boost in earnings, or the announcement or a higher dividend, a move which some analysts are calling for, could given bullish momentum to both this stock and ETF [see also 12 High-Yielding Commodities For 2012]. [...]
[...] As earnings season begins to wrap up, stocks have yet to establish a decisive direction. Though this week saw the Dow close at its highest level in four years, most are still unsure as to where we are headed in the foreseeable future. Perhaps the most pressing issue will be the resolution, or lack thereof, of the European debt crisis. On the home front, some of the biggest questions on the minds of traders is a third quantitative easing program; the Fed has hinted at QE3 but also seems very reluctant to actually implement it. But after the recent miss in GDP, the U.S. economy may be losing steam to its long haul of a recovery [see also 12 High-Yielding Commodities For 2012]. [...]
[...] As gain deteriorate starts to hang up, bonds have nonetheless to settle a wilful direction. Though this week saw the Dow tighten at the tip turn in 4 years, most are still uncertain as to where we are headed in the foreseeable future. Perhaps the most dire emanate will be the resolution, or skip thereof, of the European debt crisis. On the home front, some of the biggest questions on the minds of traders is a third quantitative easing program; the Fed has hinted at QE3 but also seems very demure to indeed exercise it. But after the new skip in GDP, the U.S. economy might be losing steam to the long transport of a liberation [see also 12 High-Yielding Commodities For 2012]. [...]
[...] will see focus shifted to the consumer sector, as Kraft Foods (KFT) will be reporting earnings. Kraft is a conglomerate that is home to [...]
[...] As gain deteriorate starts to hang up, bonds have nonetheless to settle a wilful direction. Though this week saw the Dow tighten at the tip turn in 4 years, most are still uncertain as to where we are headed in the foreseeable future. Perhaps the most dire emanate will be the resolution, or skip thereof, of the European debt crisis. On the home front, some of the biggest questions on the minds of traders is a third quantitative easing program; the Fed has hinted at QE3 but also seems very demure to indeed exercise it. But after the new skip in GDP, the U.S. economy might be losing steam to the long transport of a liberation [see also 12 High-Yielding Commodities For 2012]. [...]
[...] As gain deteriorate starts to hang up, bonds have nonetheless to settle a wilful direction. Though this week saw the Dow tighten at the tip turn in 4 years, most are still uncertain as to where we are headed in the foreseeable future. Perhaps the most dire emanate will be the resolution, or skip thereof, of the European debt crisis. On the home front, some of the biggest questions on the minds of traders is a third quantitative easing program; the Fed has hinted at QE3 but also seems very demure to indeed exercise it. But after the new skip in GDP, the U.S. economy might be losing steam to the long transport of a liberation [see also 12 High-Yielding Commodities For 2012]. [...]
[...] As earnings season starts to hang up, bonds have nonetheless to settle a wilful direction. Though this week saw the Dow tighten at the tip turn in 4 years, most are still uncertain as to where we are headed in the foreseeable future. Perhaps the most dire emanate will be the resolution, or skip thereof, of the European debt crisis. On the home front, some of the biggest questions on the minds of traders is a third quantitative easing program; the Fed has hinted at QE3 but also seems very demure to indeed exercise it. But after the new skip in GDP, the U.S. economy might be losing steam to the long transport of a liberation [see also 12 High-Yielding Commodities For 2012]. [...]
[...] The easiest way to avoid contango is to simply be aware of it in the first place. Closely monitoring futures curves will give you a very clear idea for how an investment will behave and if you are in any danger. There are also a number of ETFs that are now dedicated to eradicating the impacts of contango like the United States Commodity Index Fund (USCI), which has been dubbed “the contango killer” fund. There are also a number of inverse commodity products that will profit as a commodity position loses value to the automated futures roll [see also 12 High-Yielding Commodities For 2012]. [...]
[...] For investors who have a strong opinion on where crude is headed, or for traders looking to make a quick return, there are a wealth of options available. Perhaps the most direct method comes from the March crude oil futures contract offered on the NYMEX for both WTI and Brent. But not everyone is savvy to futures markets as they can be quite complex and difficult to understand. Investors with bold opinions can utilize the 3x Inverse Crude ETN (DWTI), which employs a 3X inverse leverage on crude contracts, or the 3x Long Crude ETN (UWTI) which offers a 3X long leverage on the same contracts. Finally, for those looking for a more indirect play, stocks like ExxonMobil (XOM) or Chevron (CVX) also make for interesting opportunities [see also 12 High-Yielding Commodities For 2012]. [...]
[...] For investors who have a strong opinion on where crude is headed, or for traders looking to make a quick return, there are a wealth of options available. Perhaps the most direct method comes from the March crude oil futures contract offered on the NYMEX for both WTI and Brent. But not everyone is savvy to futures markets as they can be quite complex and difficult to understand. Investors with bold opinions can utilize the 3x Inverse Crude ETN (DWTI), which employs a 3X inverse leverage on crude contracts, or the 3x Long Crude ETN (UWTI) which offers a 3X long leverage on the same contracts. Finally, for those looking for a more indirect play, stocks like ExxonMobil (XOM) or Chevron (CVX) also make for interesting opportunities [see also 12 High-Yielding Commodities For 2012]. [...]
[...] For investors who have a strong opinion on where crude is headed, or for traders looking to make a quick return, there are a wealth of options available. Perhaps the most direct method comes from the March crude oil futures contract offered on the NYMEX for both WTI and Brent. But not everyone is savvy to futures markets as they can be quite complex and difficult to understand. Investors with bold opinions can utilize the 3x Inverse Crude ETN (DWTI), which employs a 3X inverse leverage on crude contracts, or the 3x Long Crude ETN (UWTI) which offers a 3X long leverage on the same contracts. Finally, for those looking for a more indirect play, stocks like ExxonMobil (XOM) or Chevron (CVX) also make for interesting opportunities [see also 12 High-Yielding Commodities For 2012]. [...]
[...] The FTSE China 25 Index Fund (FXI) is home to nearly $6 billion in total assets and has been trading since 2004. The fund features an average daily volume of 18 million and is by far the largest ETF dedicated to China, but that does not mean it is the best. Investors looking to get the most for the money should take a look at another China fund, the SPDR S&P China ETF (GXC) [see also 12 High-Yielding Commodities For 2012]. [...]
[...] this could trap investors into buying in to a commodity that is set to fall based on overarching macroeconomic factors. At the same time, the Middle East has been consistently unstable in recent years, so it may be a [...]
[...] Once upon a time, the conventional wisdom was that investors should hold stocks as a source of long-term capital appreciation while bonds could bring stability and a stream of meaningful current returns in the form of interest payments. But the appeal of bonds as a source of current income has been diminished by a prolonged period of record low interest rates, pushing yields down and forcing investors to look elsewhere for distributions. In many cases company stock now has distributions that exceed the yield on debt issued by the same entity, a unique phenomenon to say the least [see also 12 High-Yielding Commodities For 2012]. [...]
[...] Over the past several years, interest in ETFs that offer exposure to high yielding asset classes has surged. From dividend-paying stocks and MLPs to junk bonds and emerging market debt, investor dollars have consistently flown towards assets that offer the potential to capture meaningful current returns. In addition to the ETFs that target these asset classes individually, there are now a number of funds that cover multiple types of high yielding securities, delivering a more broadly-based basket of securities that can lead to attractive dividend yields and low volatility. Below, we profile three such ETFs [see also 12 High-Yielding Commodities For 2012]: [...]
[...] Like many preferred stock ETFs, SPFF will have a heavy tilt towards the financial sector. Financial issuers represent about 74% of the portfolio, with insurance companies (8%) and REITs (6%) also making up meaningful allocations. The largest individual allocations will be preferred stock of Credit Suisse, AIG, Aegon and Wells Fargo [see also 12 High-Yielding Commodities For 2012]. [...]
[...] can offer a number of advantages over other options. A fair amount of these companies offer strong dividend options and high liquidity for traders of all kinds [see also Three Reasons Why Gold Is [...]
[...] Again, this is standard legal wording to protect the issuer from any kind of lawsuit that would result from a rogue subcustodian. But let’s be honest, the odds of a person successfully stealing gold from one of the most secure vaults in the world or damaging them are incredibly small. With a number of security measures in place and trusted employees, this is not something that many should worry about, but it is important to note that these risks, however small they may be, do in fact exist if you own GLD [see also 12 High-Yielding Commodities For 2012]. [...]
[...] As far as historical performance is concerned, it would be easy to cherry pick time periods which silver has outperformed gold and vice versa, but working off of 2012 data, silver is up roughly 14%, while gold lags behind with gains of 5.6%. For investors looking to make a play on this precious metal, we outline three options below that cover a wide base of ways to allocate to silver [see also 12 High-Yielding Commodities For 2012]. [...]
[...] A number of investors have stopped looking for growth, and taken cover in value funds that pay out annual yields in a time when no returns are guaranteed [for more commodity news subscribe to our free [...]
[...] when conditions for other industries turn sour. Utilities companies are also known for having a consistent track record of dividends, which makes them very attractive in times when chasing after capital gains is too risky. XLU is [...]
[...] environment. From ETFs linked to dividend-weighted indexes to those that focus on companies with stellar distribution histories to simply sector-specific funds in high yield corners of the market, there are dozens of options to [...]
[...] world, their close ties make them a unique indirect play. These stocks are often coveted for high dividend yields, providing steady income when rates are frozen at 0.25%. Below, we outline the three biggest [...]
[...] world, their close ties make them a unique indirect play. These stocks are often coveted for high dividend yields, providing steady income when rates are frozen at 0.25%. Below, we outline the three biggest [...]
[...] Recent years have seen record low interest rates and investors starved for strong yields. As such, many have turned to the comfort of dividend-yielding securities to maintain a steady stream of income for their portfolios. While this method has generally been effective, it has caused investors to overlook some vital asset classes, like commodities. When most investors think of commodities, they think of futures contracts or ETFs that track said futures; nowhere in their mind is a dividend yield. But there are a number of more indirect plays on the commodity world that offer dividend yields that should not be overlooked [see also 12 High-Yielding Commodities For 2012]. [...]
[...] cash flow of 10.65%, have both outperformed the industry average. Though the company does not offer dividends at this time, the company’s continued ability to increase revenue and profit margins, along with a strong [...]
[...] contracts each year. In low interest rate environments (like today), these funds can’t earn meaningful interest to offset that cost. But, if rates were to increase, this fund could get more interesting. [...]
[...] Potash Corp./Saskatchewan (NYSE:POT): For all of you stock pickers out there, this fertilizer firm offers a dividend yield of nearly 2% and may be an attractive option for income investors. [...]
[...] become a popular strategy in recent years, as low rate environments and paltry yields have made a steady stream of income a coveted luxury. Similarly, investing in gold and silver has been surging in popularity as the [...]
[...] become a popular strategy in recent years, as low rate environments and paltry yields have made a steady stream of income a coveted luxury. Similarly, investing in gold and silver has been surging in popularity as the [...]
[...] become a popular strategy in recent years, as low rate environments and paltry yields have made a steady stream of income a coveted luxury. Similarly, investing in gold and silver has been surging in popularity as the [...]
[...] the contracts each year. In low interest rate environments (like today), these funds can’t earn meaningful interest to offset that cost. But, if rates were to increase, this fund could get more interesting. It’s [...]
[...] with the share price near $40, that equates to a dividend yield near 1%. The firm’s 1% dividend yield likely isn’t too enticing for income-hungry investors, but its sheer size and position in the [...]
[...] with the share price near $40, that equates to a dividend yield near 1%. The firm’s 1% dividend yield likely isn’t too enticing for income-hungry investors, but its sheer size and position in the [...]
[...] are funneled into the energy industry, where oil gas companies and MLPs have been known to provide handsome dividends. This trend, however, is not ideal for portfolio diversification, as many look to move their assets [...]
[...] base and cutting costs. This strategy is paying off for shareholders who have seen a steadily increasing dividend payout since 2006. Royal Dutch’s current dividend yield on its class A common stock is 4.7%. This [...]
[...] quarterly distributions to limited partners (or stock investors). By contract, you are guaranteed dividend payouts at predictable dates [for more MLP news and analysis subscribe to our free [...]