3 Election-Proof Income Stocks
The election is over, but that distraction is not the only one that concerns the market. Here are a few stocks that will hold up through it all, notes Richard Lehmann of Income Securities Letter.
Affiliated Mangers Group (MGR)
This is an asset management company with equity investments in a diverse group of boutique investment management firms (affiliates). As of the end of the third quarter, aggregate assets under management of AMG’s affiliates was $385 billion in more than 200 investment products. The company’s strategy is to generate growth through acquisitions as well as growth through existing affiliates.
Its partnership approach creates incentives for strong performance by providing affiliate management with equity ownership in its firms alongside AMG. This structure ensures that affiliates maintain operational autonomy in managing their businesses, and thus preserves their entrepreneurial culture and distinct investment process. AMG also provides assistance to its affiliates in marketing, distribution, product development, strategic matters, and operations.
Second-quarter 2012 total revenue was $432.6 million, slightly lower than the $456.2 million posted for the same period in 2011. Net income for the quarter was $6.6 million, compared to $45.5 million posted for the same period in 2011. This decrease was attributable to a writedown in intangible assets. This security is a good investment for tax differed medium-risk portfolios.
This North Carolina-based financial services holding company has more than $178.5 billion in assets and a market capitalization of $21.6 billion.