High-paying dividend stocks can help take out some of the sting when portfolio values drop like we saw in 2008, but that doesn't preclude outsized returns when the market produces big returns like in 2009 and 2013, solid returns in 2012, or just above-breakeven returns like in 2010 or 2011.
Since its first high yield report published in November 2008, BullMarket.com's annual high yield selections have generated a 5-year cumulative return of 203.8%.
For BullMarket.com's 2014 High-Yield Stock Report, the editors of BullMarket.com present their 9 high-yield picks for 2014.
In its five previous high yield special reports, BullMarket.com has been able to indentify some huge winners.
For its Nine High-Yield Stocks for 2009 special report, the top performer was containership operator Seaspan (SSW), which generated a 123% one-year return. At the time, BullMarket.com saw a beaten-down shipper with long-term charters that looked poised for a rebound.
Two now former Canadian energy trusts, Baytex (BTE) and Penn West (PWE), were also among the winners in 2009, returning 114% and 53%, respectively, as BullMarket.com believed the stocks were undervalued and that energy prices would rebound.
For 2010, business development corp (BDC) TICC Capital (TICC) was the report's biggest winner, retuning 96%. At the time, BullMarket.com saw a BDC trading well below book value with zero leverage and a relatively good history of credit quality.
Obscure deathcare MLP (master limited partnership) StoneMor (STON), meanwhile, generated a 73.1% one-year return after BullMarket.com named it one of its 2010 picks. At the time, its editors saw a high-yielding MLP with a simple business that was undervalued because its complex accounting made it a little difficult for investors to understand.
A strong performer for both 2009 and 2010's reports was MLP Enterprise Products Partners (EPD), which returned 83% for 2009 and 52% for 2010. Enterprise is one of the largest service providers to the U.S. energy sector. The company has a collection of pipelines, storage facilities, processing plants, and platforms in the Gulf of Mexico, along the Gulf coast, in the Southeast, Midwest, and into the Rockies.
In 2011, Philip Morris International (PM) was a top performer, as the non-U.S. tobacco company put up a smoking 25.4% return. The company remains one of the best allocators of capital around.
For its 2012 report, BullMarket.com had five selections generate over 30% one-year returns, including mortgage REIT American Capital Agency (AGNC), Canadian bank Toronto Dominion (TD), and specialty waste hauler US. Ecology (ECOL).
For 2013, BullMarket.com had six winners with returns of 20% or more, led by an 84.9% leap in MLP Crosstex Energy (XTEX) and a 77.0% gain in media company Meredith (MDP).
2014's report will feature new stocks, as the investment landscape continues to shift and new opportunities emerge. For access to the 35-page report, examining each pick's dividend history, business activities, strengths, weaknesses, latest earnings report, and much more, visit BullMarket.com.
A daily investment service that is committed to creating long-term wealth for its members, BullMarket.com's Recommended List of stocks is up 161.6% from 2009 to November 2013 versus a 99.9% return for the S&P, a 61.7% outperformance, topping the benchmark each year since the start of the Great Recession. Subscribers receive actionable market commentary, access to 40+ stock ideas on the Recommended List, and real-time trade alerts. Plus, sign up for a free trial today to view Bull Market's in-depth Special Reports - including its annual High Yield and MLP reports - and its timely Earnings Previews, which are published every Friday during the heart of earnings season. Get a Risk-Free Trial to Bull Market Today! (Please note returns are unaudited.)