Foolish Investments for 2011
January 01, 2011
– Comments (3) |
RELATED TICKERS: IPSU
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I spent most of 2010 chasing hot returns in Chinese small caps. I did OK but it wore me out. I need a break.
The need for rest coincides with wanting to tighten up on the reins a little anyway because China’s tightening up and I think the 2011 market could be toppier and choppier than 2010. So, I’m starting 2011 looking to safely compound 2010’s hard-won gains by sitting on some strong, fairly valued companies offering top dividend yields. If there’s anything about that thinking or approach that appeals to you, here are some of the stocks I like right now that you might look into.
AKO’A – Coca-Cola bottler for Brazil, Chile, and Argentina. 4.15% yield.
AMLP – Oil royalties trusts ETF. 6% yield.BMO- Bank of Montreal. 5% yield.
CH – Aberdeen Chile Fund. 8.65% yield.HYF – Corporate bonds. Yields 11%.
IPSU – This is not a top dividend yielder, but it’s a company I believe will significantly outperform the S&P in the next two years. My top buy and hold pick.
TRP – Canadian oil and gas pipeline. Yields 4.2%.
VOD – Global communication mega-giant. Owns a big piece of VZ. Yields 5%.
YGE – No yield, but if oil goes to $110 as some are predicting, this will hit its target of $14 in the coming year, probably in the first four months of the year, and provide a 40% return on 2010’s closing price. My number one pick for making mad money to buy more Chinese small caps quick in 2011. YGE spec stake rolled in from CNAM in the final days of the year. THANK YOU, CNAM!!!Z
TR – More corporate bonds yielding 10+%.
I’m also heavily overweight copper. Here’s one of many articles citing a well-known supply-demand bottleneck in copper for the next two or more years. Long JJC and COPX.
I'm fairly certain I won’t be able to keep my wandering eye off those foolish Chinese small caps, though. I’m currently waiting on lower prices in companies like CCCL, CCM, CNYD, CPQQ, CTXIF, CNOA.OB, NPD, and SGAS. If the past is any indication, I won’t be able to resist a good buying opportunity in any of these and will ditch some underperformer or overachiever in the list above to take a flyer on one or more of these or some of the dozens of other promising companies on my watchlist.
That's my story and I'm sticking to it until I don't. That will probably be sooner than later. Good luck in the coming year, Fools.
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