As I indicated in Friday's 25% Cash Machine update, I'm going to keep you posted about new portfolio additions through these Alerts. I want to make sure you have timely notification about these new portfolio picks so you can start prudently building positions today.
As such, today I'm letting you know about the two securities I'm adding to the portfolio in Wednesday's 25% Cash Machine newsletter. There will be a full write-up of each holding in the newsletter.
It never ceases to amaze me how the structured-product markets are evolving so creatively. As I've mentioned in recent weekly updates, if there was a fund with a dividend-capture strategy based on foreign stocks, I'd be very interested in looking at it.
Enter the Evergreen Global Dividend Opportunity Fund (EOD). It's just what the doctor ordered!
Evergreen Global will be invested in a blue chip portfolio with a heavy emphasis on European and Asian stocks. The mega cap and dividend paying stocks (like utilities and telecommunications stocks) that EOD is buying have been market leaders since August 2006.
Let there be no doubt, this is a blue chip rally and the underlying theme that is driving the market higher is "whatever is multinational." It's as simple as that.
Take a full 3% position in EOD up to $21. The shares are trading at less than a 2% premium to the company's net asset value, indicating healthy expectations for the soon-to-be-declared dividend.
The spot market for day rates is healthy and Nordic American Tanker Shipping (NAT) is tied to spot-market prices, more than other tanker stocks that have multi-month contracts at fixed pricing.
The success of the tanker market in the future is dependent on the development of the world economy -- in other words that big sucking sound for the insatiable demand for oil we hear in China, Japan, Europe, India and the United States.
Take a full 3% position in Nordic American Tanker Shipping (NAT) and buy it up to $40 per share. The stock has jumped almost 10%, hitting $41 in the past couple weeks following the announced quarterly hike in the dividend from $1 to $1.24. It's found strong support at $38.
I'll provide much more information about Evergreen and Nordic American in the June issue of The 25% Cash Machine newsletter. In the meantime, you can begin to build your positions in these two securities.
See you Wednesday,
Bryan Perry
Editor The 25% Cash Machine