Yield & Income Scorecard, from inception through February 5, 2007.
April 2006 marked the initiation of our research and recommendations for income generating equities. We cover real estate investment trusts (REITs), master limited partnerships (MLPs) and Canadian Royalty Trusts (CANROYs): stocks with low volatility (low beta) for income investors.
Over the course of the year we made 12 BUY recommendations, and initiated coverage of 7 with a HOLD or No Rating.
Buying each of the REITs would have lined your pockets with an overall return of 25.4%, through February 5, 2007 (versus the MSCI REIT index of 17.8%), with lower than market average volatility (0.44 beta). Buying each of the MLPs would have given you a return of 14.3%, through February 5, 2007 (versus the Alerian MLP index of 13.3%), with volatility of only 0.54 beta. Our CANROY pick (PWT-U) was down -16.6% (versus the index of -15.2%) for the year because of the Halloween massacre (new tax treatment of income trusts in Canada).
To be sure, someone buying the market on Jan. 2, 2006 and holding would have done better, but not all our money was being put to work on the first day.
The best pick among REITs was Kimco (KIM), up 43.6% from April 13.
The best picks among MLPs were Energy Transfer Partners (ETP), up 39.1% from May 16, and Natural Resource Partners (NRP), up 24.7% from July 16.
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