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Linn Energy (LINE) is one of HSC’s Top 3 Dividend Stocks

Today's Financial News - Posted November 23, 2009

TFN’s Hot Stock Confidential team just chose Linn Energy, LLC (NASDAQ:LINE) as one of its top three dividend-paying stocks! But they only rank it third!

by J. Christoph Amberger

Baltimore, MD TFN: Sometimes it seems like dividends went out of fashion with “podcasting”. But your faithful TFN team set out to unearth three companies that are bucking the trend.

In fact, most of them are paying out higher dividends every single quarter, recession or not!

And don’t worry: The downside on the companies is actually quite manageable. Unless there’s another cataclysmic upheaval in the energy markets, you actually stand a chance to make gains on your principal as well… while you collect annual yields of 10.43%, 10.31%, even 14.76% in quarterly installments!

The challenge was to find an industry that’s still doing brisk business on rising demand. The one best positioned is the oil and energy industry. Washington may still be piddling away billions on figuring out how to power a 747 by harnessing the renewable energy inherent in butterfly wingbeats.

But the rest of the world — those countries that still are chalking up economic growth — is buying and consuming oil and gasoline like there’s no tomorrow.

We selected three of the best energy-related companies with the highest and most reliable dividend payout record around.

All of them just paid out their Q3 dividends to shareholders. That has smoothed out the current stock price. (You remember, often, the underlying stock of a dividend high-roller rises considerably in the days prior to the ex-dividend date… to fall sharply as capital is withdrawn immediately afterwards.)

I originally wanted to sequester all three picks for our Hot Stock Confidential members. But we at TFN are of a giving nature. That’s why I posted one of our picks right here at our TFN portal… yours free for the reading

Dividend Cash Cow #2: Linn Energy, LLC (NASDAQ:LINE) is a medium-size independent oil and gas company. They focus on the development and acquisition of “long life” properties in the United States.

Properties are located in the Mid-Continent and California, with 6,716 gross productive wells and huge proven reserves (51% gas, 31% oil, and 18% were natural gas liquids). Approximately 68% were classified as proved developed.

The company has consistently increased output and reserves. Set up as a master limited partnership, it doesn’t pay U.S. corporate income taxes… and is thus able to disburse hefty dividends to shareholders. It has never missed a dividend payment!

On October 21, 2009, the Board of Directors declared a quarterly cash distribution of $0.63 per unit, or $2.52 per unit on an annualized basis for Q3 2009. The distribution was paid on November 13, 2009, to unitholders of record as of close of business on November 6, 2009.

Current yield is 10.31%. The current share price is $24.42.

*** Buy Linn Energy, LLC (NASDAQ:LINE) below $25 over the next weeks, using pullbacks in the share price to stock up on your holdings.

But quite honestly, out of the 3 Top Dividend Stocks we picked, LINE yields the least… and is the most expensive stock! Its competitors yield close to 11% and 15%… and tie up far less of your capital. You see why we had to reserve them for our premium service members!

Don’t worry though… there’s still plenty of space in our membership rolls. You can get access to our two other picks — and join a group that’s generated 70 double-digit winners so far this year — simply by following this link: https://web-purchases.com/HSC/WHSCKB00/


Next Article: TFN eNews 11/23/2009: Top Dividend Stocks

Posted by J. Christoph Amberger · Filed Under Oil and Energy 

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