Income Stocks Pop Big Time

Today was a day for long stock investors to sit back and enjoy a little. Sure, we are still 20% in the hole from the last couple of weeks but we made up a third of the losses today. I was especially impressed with the performance of the high yield stocks I track and watch. Last week I wrote a couple of times on how I believed the market was over-selling high dividend stocks even though the payouts were secure. On Saturday I highlighted Inergy (NRGY), which increased its dividend on Friday, as an example of these oversold stocks. Today many of the high-yielders had very nice recoveries, with NRGY leading the way for my Income Portfolio, gaining 33% today, but still yields almost 14%.

Here are a couple of other high-yield stock that did well today:

• Ship Finance Ltd. (SFL) up 25%, yield 15%.
• Atlas Pipeline Partners (APL) up 23%, yield 18%.
• Felcor Lodging Trust (FCH) up 63%, yield 21%.
• Penn Virginia Resources LP (PVR) up 32%, yield 16%.
• Tel Offshore Trust (TELOZ) up 37%, yield 72%.

Please note: the last three stock from the above list are from this site’s Watch List and I have done very little research on them. My point is that these stocks have a long way to go on the upside before yields reach any sort of “normal”. Let us hope that the market continues to bring these stocks to prices in line with their dividend payouts.

Note: I currently have a long position in SFL.

Posted in Categories: Contributor, External Research, Shipping, Stocks, USA.

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