Then there's Big Oil. "Energy remains a fertile sector for income investors," says Lloyd Glazer, managing partner of Mayflower Advisors in Boston, which manages $850 million. Once again, the top U.S. companies have risen a long way, and yields have been compressed. "The global companies offer better valuations and higher yields than the domestics," he says.
France's Total (TOT), Italy's Eni (ENI), Anglo-Dutch Royal Dutch Shell (RDS.A) and BP (BP) of the U.K. all boast yields above 4.5%. These stocks are exposed to the global energy market more than the troubled European economy, Glazer says.
You also can find good opportunities in other sectors. U.S. utility stocks have risen a long way, and Eaton Vance's Saryan says you may find better opportunities across the Atlantic. One example she cites: British-based National Grid (NGG), which also has significant operations in the northeastern U.S., yields 3.5%.
Among big consumer companies, McDonald's (MCD) -- whose stock has fallen recently due to sluggish sales growth and some rising capital expenditures -- yields 3.4%. Saryan thinks the stock is a reasonable value at these levels.
British supermarket giant Tesco (TSCDY), whose investors include Warren Buffett, stumbled earlier this year on domestic price competition. It yields just over 4%. Ron Chan, an analyst at the $240 million Appleseed Fund, says the stock is cheap and the firm's fundamentals are solid.
There are caveats, of course. Stocks aren't bonds. Dividends can be cut. Stock prices can be volatile. Dividends are likely to lose at least some of their tax benefits next year as the Bush-era tax cuts expire. And non-U.S. stocks involve some currency risk, although a falling euro also may help European corporate profits.
For investors who don't want to pick individual stocks, there are funds that focus on income stocks. The Vanguard Equity Income Fund (VEIPX) has a yield of 2.9% and it charges annual expenses of 0.31%. For non-U.S. companies, the iShares Dow Jones International Select Dividend Index (IDV) exchange-traded fund, with a 0.5% annual fee, yields 5.4%, but be warned: It holds a lot of financial stocks.
More from the Wall Street Journal:
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More than half of all American workers who save for their retirement years by investing in stocks, mutual funds or other assets also pay the same rate that Buffett does on their capital gains and dividend income. But Obama doesn't seem to understand this or conveniently chooses to ignore it because it sounds fair.
Millions of retirees today, who do not think of themselves as rich, live off the cap gains and dividends from a lifetime of savings and investment and pay 15 percent on that portion of their income. (Obama and unelected Czars could care less)
This is for V_L: (whenever they wake up)
We're flying out tomorrow for the North Carolina Smokey Mountains. We don't need to stay at Jack Welsh's resort, we have had our own place up there since 87'. But, if you would like to visit, I'll ask Jack if he can put up up there for a few day's- I need someone that can dig for worms when I fish for rainbow trout.
Nothing surprising about the Ryan-Biden debate. Biden is a loud-mouth d*ck, so it was impossible to have anything resembling a debate. Ryan to his credit, kept his cool. I wish he had smacked Biden in the mouth and knocked out his ugly old false teeth!
Biden characterizes the inemptness of the Obama-Biden administration, one empty suit and a wack job! It is no wonder that our country is in such deep financial trouble.
Anyway, I look forward to next Tuesday when Mitt destroys Obama!
Go Mitt go, Biden surely blows!
Conclusions for the debate last night:
As expected, Biden not only came out aggressive, but was rude and condescending. Isn't that the tone of this whole administration ? But in the end, the major news media pundits are giving Ryan the edge. Soooooooooooooo.......................
I TOLD YOU SO! I TOLD YOU SO! I TOLD YOU SO ! I TOLD YOU SO! I TOLD YOU SO! I TOLD YOU SO! I TOLD YOU SO! I TOLD YOU SO ! I TOLD YOU SO ! I TOLD YOU SO!
Can't say that I like Republicans, but I like Romney, also, Can't say I like Democrats, but I don't like "O-Boy" either.
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[BRIEFING.COM] Stocks entered the weekend on a mixed note as the S&P 500 shed 0.1% while the Dow ended with a gain of 0.1%.
The major averages began the day on a lower note as nine of ten sectors saw losses of more than 0.5%.
The consumer staples sector was the lone exception as the group spent the entire day in positive territory thanks to the relative strength of Dow component Procter & Gamble (PG 81.89, +3.19). The second-largest staple stock advanced ... More
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