Top Pros' Top Picks

6 Solid and Diversified Income Picks
Specialty: INCOME
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Published: 11/8/2012
By Bryan Perry, Editor, InvestorPlace Media, LLC
Tickers mentioned: FAX, FTF, CQP, HTGC, UAN

Here are a half dozen solid dividend payers that are still kicking off some impressive yields, notes Bryan Perry of Cash Machine.

Aberdeen Asia-Pacific Fund (FAX)
Yield 5.35%
China is embarking on a fresh stimulus program that is benefiting all the commodity exporters to the Red Nation. With the dollar selling off, we want some contra-currency exposure in countries with strong balance sheets like South Korea, Indonesia, Philippines, Malaysia, Hong Kong, China, Thailand, India and Singapore. Buy FAX.

Cheniere Energy Partners (CQP)
Yield 7.44%
A sizable secondary offering at a discount to its recent high hit the shares temporarily, and provides a good entry point off the 200-day moving average. Earlier this year, the company received $2 billion in fresh capital from Blackstone Group as a further endorsement of this long-term bullish investment theme. Buy CQP.

Franklin Templeton Ltd Duration Fund (FTF)
Yield 6.80%
The fund owns corporate debt, bank loans, and floating rate debt, making for a nice blend of 367 holdings that have an average duration of only three years. Currently trading at only a 4% premium to NAV, this well-positioned debt fund pays monthly and sports an excellent yield for investors seeking a safer income stream. Buy FTF.

Hercules Technology Growth Capital (HTGC)
Yield 8.70
Anything related to technology has been on the ropes this past month due to lower expectations for earnings from some of the leading names like Intel (INTC). Hercules lends money to companies with new innovative solutions to smartphone, cloud computing, IP security, digital media, and life sciences with expanding margins. It's not reliant on legacy technologies, like PC makers and suppliers, where profits are shrinking. Buy HTGC.

CVR Partners(UAN)
Yield 8.95%
Agriculture stocks are on the back end of a corrective phase and look ready to begin a new rally. Corn will lead the way, as it is the most devastated of the major crops and will enjoy the largest future plantings. The drought has corn prices at world-record highs, and it will take at least two years of record plantings to make up the current shortfall. Buy UAN.

Senior Housing Properties Trust (SNH)
Yield 6.90%
For conservative investors seeking out that "7% solution," this is one of those conservative ways to go about it. The demographic trends fully favor REITs like SNH, and I continue to have strong expectations for a wave of takeovers in this sector during the next year. Buy SNH.

Related Reading:

6 More Stocks Boosting Dividends

Will the Taxman Attack Annuities?

6 Stocks with King-Size Yields

Bryan Perry on InvestorPlace

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