40 Dividend Hikes in 14 Years – and Counting…
Without a doubt, it’s our most popular piece of research…
Each year we publish our annual “Top 10 Stocks” list. Put simply, these are the 10 stocks my research staff and I think have the best chance of beating the market in the coming year.
We’ve published this annual list since 2003. And over the years, tens of thousands of investors have read — and profited — from our advice.
There’s a good reason why this research is so popular year-in and year-out.
In our inaugural edition in 2003 our top picks beat the S&P by 12 percentage points during the course of the year. And then came 2004… 2005… 2006… 2007… 2009… and 2010 — our Top 10 Stocks trounced the overall market in those years as well.
In fact, through 2011 (2012 results haven’t been finalized yet) this annual list has beaten the market seven out of nine years.
Now… there are no guarantees we’ll beat the market yet again in 2013. But my staff and I have spent countless hours researching this year’s top picks, and I think we’ve selected our most promising Top 10 ideas to date.
For example…
One of my favorite investments for 2013 is already making a fortune thanks to “The New American Energy Boom.” And its profits should only continue to grow with the boom.
If you’ve been following the headlines, then you probably already know that oil and gas production in the United States is exploding.
Thanks to the spread of techniques like hydraulic “fracking” and horizontal drilling, previously unrecoverable oil and gas is now being pulled from shale fields across the country. That’s created an unprecedented U.S. energy boom.
In fact, this trend is so big that the International Energy Agency predicts the United States will pass Saudi Arabia as the world’s top oil producer by 2017.
Take a second to think about that… The consequences will be enormous.
And one thing is for certain: Companies in the energy sector are going to see a lot more business because of it.
That’s why my research team and I chose Enterprise Products Partners (NYSE: EPD) as one of our Top 10 Stocks for 2013.
Enterprise is the largest master limited partnership (MLP) in the United States. In total, the partnership owns more than 50,000 miles of pipelines used to carry natural gas, oil and refined chemicals around the country.
We’re particularly excited about Enterprise because it owns what we like to call “irreplaceable assets.”
Once a pipeline is built, it typically enjoys near-monopoly status and it acts like a tollbooth, capturing a steady stream of income year-in and year-out as oil and gas flows through its network.
Moreover, Enterprise operates a business that’s vital to day-to-day life. Without the oil, natural gas and other commodities it ships through its pipelines, our lives would be drastically different.
As U.S. oil production continues to rise, Enterprise should see increasing demand for its pipelines and services. And because the company is structured as an MLP, it is required to pay 90% of its earnings to shareholders. This should translate into rising distributions for shareholders.
In the past year, Enterprise has paid more than $2 billion in distributions. And since going public in 1998, the partnership has increased its distribution 40 times. In fact, the company has increased its dividend every quarter since 2004.
Right now Enterprise pays a 5% dividend yield. That’s not bad considering the average stock in the S&P 500 yields just 2.11%. And with the partnership’s rising distribution payments, investors who buy today will likely enjoy a higher yield in the future.
Action to Take –> Of course with investing, nothing is 100% certain. But as long as energy demand remains strong, I think Enterprise will continue to reward its investors in 2013 and beyond.
[Note: One stock has raised dividends 463% since 2004… another has $9.21 per share in cash (49% of its share price)… another has returned 137% in three years — more than triple the S&P’s 39% gain. These are the type of investments that make up my Top 10 Stocks for 2013 report.
To learn more about these top picks for the coming year, visit this link.]