Double-digit income yields catch the attention of investors in any environment, but that’s especially true these days — savings accounts yield a fraction of a percent, typing up your money in bonds or CDs for a few years likely means you’ll actually lose money after you account for even low inflation, and the average big “blue chip” stock pays out only about 2-3% in dividends (if it pays a dividend at all).
So for the near-retiree who needs income from a stock portfolio, or from the trepidatious investor who wants something in writing about how much money they can expect to make over the coming year, the idea of a dividend check coming every quarter and giving you a 10% income yield is pretty freakin’ exciting.
Which is, of course, why they use such a tease to get our attention when advertising newsletters, hoping that we’ll pay to subscribe in order to get the lowdown on this double-digit yield. High-Yield Investing does this frequently, hinting and teasing about their “high-yield stock of the month” and cajoling us to subscribe — but we are, of course, firm and steadfast in our resolve: Subscribing might be fine for folks who actually want these newsletters, but for those of us who just want the answer to the tease we are on the case!
Cue inspiring theme music, please!
OK, fine, so it’s not that big a deal — but this is apparently a preferred stock in some kind of oil company, and it pays out a better-than-10% annual dividend. That’s worth looking for. The tease comes from Nathan Slaughter, who has apparently taken over High-Yield Investing from longtime dividend diva Carla Pasternak (haven’t heard anything about her in ages, presumably she retired or moved on to greener pastures — the deck chairs move around a lot at most newsletter publishers), and here’s how he entices us:
“The 10.2% “Lifetime Oil Dividend” Paying Millions of Dollars Every Year
“Now we pull back the curtain to tell you the details of this discovery….
“It’s a high-yield opportunity that just one out of a hundred investors knows about. But if you’re looking for an enormous yield that could pay you massive dividends for life, then you need to learn more about our “High-Yield Stock of the Month” for November 2013.”
How about some specifics about the stock or the company? Here are some more clues:
“What’s surprising is that hardly any investors know about this stock. It went public in late 2012 to almost no fanfare. That’s partly because there are only 685,000 shares — that’s barely a blip on Wall Street’s radar….
“This security is backed by one of the most exciting oil companies on the planet. This company owns oil wells in Alaska’s lucrative Cook Inlet. This inlet is dotted with drilling platforms and blessed with vast amounts of oil and gas buried in large, developed shallow-water fields.
“The potential here is staggering. In fact, over just the past year the company has been able to quadruple its oil production — making it one of the fastest-growing oil producers in the nation. The company also holds 54 million barrels of total reserves within its properties. And we think our “High-Yield Stock of the Month” is the best way to get an interest in that production….”
And how about that divide