Four Dividend Dynasties for 2007:
Stocks for High Yield, Strong Capital Gains and Low Risk

Here are just a few of the companies we’re buying now. They’ve got excellent locked-in dividend yields and value prices that are likely to give you strong capital gains.

* The Brand Leader in Home Furnishings — at a HUGE Discount–This stock is the strongest and most recognizable brand name in the home furniture industry worldwide. It has a great dividend yield, strong cash flow and an excellent balance sheet. It’s extremely low-risk since the company has paid and increased its dividend annually for at least the past 25 years. It’s now undervalued by 30% due to the real estate slowdown. This is a huge buying opportunity that will be rewarded once the housing market turns back up.
* A Global Telecom Powerhouse Ready for a Profit Breakout — This company is the second-largest telecom company in all of Europe. It has wireless properties in many high-growth emerging market countries such as Eastern Europe and Africa. A dominant one-stop shop for landline, wireless, and Internet, this company is also the largest broadband Internet service provider in Europe. It is a huge free-cash-flow generator–$8 billion annually! Its profits are so strong it just doubled its dividend in 2006 to a 5.5% yield. Better still, the stock is undervalued by 25%. Double-digit growth in emerging markets will spur continued free cash flow growth. Yet, this company is trading at a big discount to its peer telecom companies.
* The Superstar in Natural Gas Distribution — This company runs one of America’s premier natural gas pipeline networks. It’s a very profitable, safe and stable business. 87% of its revenues are based on volume of natural gas transported, not price of gas. It been performing brilliantly for its investors with a 26.3% average annual return since 1999. Compare that with a 3.3% for S&P 500. Act now and you’ll earn a 6.3% annual dividend yield that is well-covered by cash flow. What’s even better? The vast majority of your dividends is automatically tax-deferred until you sell your shares.
* A Monopoly on ‘The 21st Century’s Most Precious Resource’ — How many companies in your portfolio are monopolies that sell a product with no known substitutes? How many provide a service that faces exploding growth, regardless of recession or inflation? You’ll get this and more in this investment. It pays a handsome dividend and is now some 26 percent undervalued. Get all the details in The 21st Century’s Most Precious Natural Resource. This special report, a $29 value, is free with an introductory subscription to Motley Fool Income Investor.

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