Author: Ben Dickey
Disclaimer: Ben Dickey owns LINE, KMP, CAT, BUCY, UTX in his Covestor Growth Plus Model and LINE and UTX in his Covestor Pure Growth Model.
August 30, 2010: This summer has been troublesome for investors. Healthcare Reform, Financial Regulation, and other government requirements have stymied the economy and Investor Confidence. The Gulf Blowout has come and gone, but the drilling ban still remains.
With all the Market uncertainty, we are buying companies or products that generate cash as well as companies that generate a large portion of their revenues overseas. We are buying stocks in the commodity Limited Partnerships, Penn Virginia Resources (PVR), Whiting Trust ( WHX ), Lynn Energy (LINE), Kinder Morgan Partners ( KMP). In the Reit area, we are buying Anworth Mortgage ( ANH ) and Resource Capital ( RSO ). These investments pay a dividend of between 7% and 16%.
In pure equity, we are watching Caterpillar ( CAT ), Bucyrus ( BUCY ), Joy Global (JOYG ), Proctor & Gamble ( PG ), and United Technology (UTX) for a few. These companies pay a solid dividend. They also derive a majority of their income from Developing or Emerging Markets.
We believe in buying income producing assets on pull backs and waiting until the fall elections to make major changes.
