E-TRACS 2x Leveraged Long Wells Fargo Business Development Company Index (NYSE:BDCL)
The financial sector has finally gotten some upward momentum, and I expect the recent strength in bank stocks to broaden out to the rest of the sector, which includes insurance, brokerages and business development companies (BDCs). The technical chart for BDCL has improved markedly — coming out of a basing process during the past month. And now, it’s poised to challenge $20 and higher. Yield 22.95%.
Aberdeen Chile Fund (NYSE:CH)
After severely underperforming in 2011, it’s time to step up into the emerging markets where export economies stand to benefit from a global economic recovery. Chile is the most successful economic model in South America — and also the most advanced society there. The managers at CH have set the forward quarterly dividend for 2012 at 53 cents per share, and that won’t be up for any adjustment until next October, so the current yield is in the bank. Yield 17.6%.
Cheniere Energy Partners (NYSE:CQP)
Liquefied natural gas (LNG) is America’s newest export commodity, and we have arguably the world’s largest supply of it. From the standpoint of getting LNG to foreign markets, Cheniere Partners has a virtual monopoly in its ownership of the Sabine Pass Terminal in southwestern Louisiana. The partnership has secured two major contracts for overseas distribution, and 2012 will only see more big deals come its way. Yield 8.3%.
Dreyfus High Yield Strategies Fund (NYSE:DHF)
High-yield corporate debt that carries short duration in a recovering economy stands to perform quite well — especially with the yield on the 10-year Treasury Note hovering between 1.87% and 2.01% this week. I look for nonrated corporate bonds to trade back to their 2011 highs in the next six months. These 10%+ yields take most of the guesswork out of beating the benchmark averages while paying out on a monthly basis. Yield 10.76%.
Fifth Street Finance (NASDAQ:FSC)
This BDC broke its 11-month downtrend line last week along with multiple other financials. Shares of FSC traded as high as $14 early last year and bottomed out at $8.38 during the August meltdown. At its current price of $10.50, there’s 20% to 30% upside potential from here. The stock traded ex-dividend (Jan. 11), so you should be able to buy it around $10 in the near term. Yield 10.95%.
Medical Facilities (TSE:DR)
The company posted an in-line quarter and looks to expand its footprint of acute-care facilities in the upper Midwest this year. This well-managed health care provider, which owns a 51% interest of four of these facilities, offers a very stable monthly income stream that simply can’t be matched by any other stock or REIT in the industry. Yield 9.17%.
Mesabi Trust (NYSE:MSB)
Mesabi has to have enormous upside potential if the U.S. and global economies see any kind of modest pickup. There’s fresh positive sentiment surrounding the basic materials sector, and MSB is one of the two or three highest-yielding names. Yield 7%.
