Major Commodity Earnings This Week: ADM, DVN, TNH

As we enter the latter part of earnings season, investors and analysts have had plenty of major reports to digest. Thus far, it seems to have been a mixed bag of results with a number of high-profile beats and misses. Reports from commodity firms have been especially under scrutiny as many worry that China’s plateauing growth will send commodity prices into the gutter. Below, we outline some of the biggest commodity firms reporting earnings this week [for more commodity news and analysis subscribe to our free newsletter].

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What Are Master Limited Partnerships (MLPs)?

Many energy companies have assets that generate a consistent income over time. For instance, a natural gas pipeline will transport a predictable amount of gas through it each year, generating very stable revenues. These stable revenues often lead to a distribution of earnings to shareholders in the form of a dividend. Unfortunately, investors are double taxed when standard corporations issue dividends – once when the company earns the revenue (corporate income tax) and once when the dividends are paid out (personal income tax). Master limited partnerships (MLPs) solve this problem by eliminating double taxation for revenues derived from qualified sources – as determined by the U.S. Internal Revenue Service. These sources include almost all activities associated with the production, processing or transportation of oil, natural gas and coal assets in the U.S. [for more MLP news and analysis subscribe to our free newsletter].

Posted in Academic Research, Commodity ETFs, Commodity Producers, Energy, MLPs, Natural Gas, WTI | Tagged , , , , , , , , , | 4 Comments

3 Agriculture Stocks With Strong Yields

As we enter 2013 investors are faced largely with the same general uncertainty over the future of the U.S. economy that we saw last year. In light of this, a number of commodity investors have turned to dividend stocks to help maintain a sense of security and a steady stream of income for their portfolios. As the years have gone on and emerging markets have continued their exponential growth, the appeal of agriculture stocks has surged, especially for those that pay dividends. Below, we outline three agriculture stocks with strong yields for those looking for solid dividend stock investing ideas [for more agricultural news and analysis subscribe to our free newsletter].

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13 High-Yielding Commodities For 2013

As many individual investors have taken a cue from professional and institutional money managers, alternative investments have gone mainstream – and commodities lead the trend. Interest in this asset class has exploded as individual retail investors have discovered commodities’ vast benefits, like low correlation to equities and bonds, inflation-fighting capabilities and their ability to profit from some of the world’s fastest-growing emerging markets. These benefits have made funds like the  PowerShares DB Commodity Index Tracking Fund (DBC) popular holdings in many portfolios [for more commodity news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Asset Allocation, Coal, Commodity ETFs, Commodity Futures, Commodity Producers, Dividends, Energy, Gold, Hard Assets, Industrial Metals, Lumber, MLPs, Natural Gas, Precious Metals, Steel | Tagged , , , , , , , , , , , , | 4 Comments

Five Commodity MLPs With Sky High Yields

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].

Posted in Agriculture, Coal, Commodity Producers, Dividends, Energy, Exclusive, Natural Gas, WTI | Tagged , , , , , , , | 11 Comments