Wednesday, November 19, 2008

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How You Can Capture Rare Double and Even Triple-Digit "Insight" Dividends

-- By Andy Obermueller

     The financial markets have been hit by the equivalent of Hurricane Katrina.  It's not a bad metaphor for the current crisis.  The storm came, the rivers swelled, the levees failed and the city flooded.  The insurance industry calls these events "megacat" disasters, as in mega + catastrophe. These powerful acts of God can literally wipe an entire city off the map. Many investors certainly have seen that happen to their portfolios.

     These phenomena do not, thankfully, occur very often, either in the meteorological or the financial sense.  Nor do a series of special dividends that are the typical financial aftershocks of a severe downturn.  Today, we'll look at these special dividends and show you how to seize your share of a very rare payout -- one most investors miss.  (Full Story Below)

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    How You Can Capture Rare Double and Even Triple-Digit "Insight" Dividends

     In 12 months, you could begin collecting some of the biggest dividend payments of your life.  Only a very limited number of investors will be able to access the wealth generated by this mighty stream.  The few who do will see remarkable payouts of 48.5%, 52.4%, 61.6% -- and even 165.9%.

    No, I didn't just accidentally move the decimal point over one place to the right. I've checked and double-checked these numbers. These figures aren't typos.

     Let me be clear:  Investors will likely see triple-digit gains from a select group of investments thanks to upcoming "insight" dividends.

     These are not ordinary dividends.  Most never investors receive them. They're basically statistical aberrations that come along once in a blue moon -- literally once a generation.  Then, they're gone.

     History shows that most investors will see only one or two of these during their trading careers.  Almost everyone misses out on them completely.  Those who do manage to hear a whisper about these opportunities probably won't see another one in their lifetimes.  

     That's a shame.  I know how hard people work for their money, how they sometimes have to struggle to get ahead.  I know I have.  And this extremely rare opportunity has the power to engender real financial freedom.

     These potential triple-digit dividends could fund a flush retirement. They could cover expenses at the nation's finest institutions of higher education for children or grandchildren.  A return like what dozens of these companies will generate in the next 12 to 18 months could forever alter many families' finances for the better.

    And yet, as I said, most will miss out.  You don't have to. So please don't fail to seize this opportunity.  Believe me, you'll kick yourself if you let this once-in-a-lifetime opportunity pass you by.

     An In-Depth Look at One Company Likely to Make an Unprecedented Insight Dividend

     I'm going to tell you about a company right now that's going to offer one of these extraordinary "insight" dividends.  I have plenty more up my sleeve. This company is just an example, one of several dozen insight dividend opportunities that our analytics team has identified.

     The best thing about this company -- and, indeed, all the stocks gearing up for insight dividends -- is that they already pay dividends many times greater than what's available from the U.S. and most international markets.  The S&P is yielding a smidgen over 3%. That's pretty good for the S&P, but it's not going to get a second look from any serious dividend investor. 

  But this company's insight dividend causes whiplash-inducing double takes all the time. I like to include it in a chart I show friends and colleagues just to watch their reaction. It's always the same.

     "Is this right? Seriously?" 

     "Yes," I always say. "It's right." 

Company

Yield Insight Dividend
Peruvian Miner 16.1% 48.5%
Global Oil Producer 7.7% 52.4%
Bermudan Shipper 31.0% 61.6%
Taiwanese Tech Company 18.0% 165.9%

     This company pays a remarkably strong, mouth-watering double-digit dividend.  It has a long, steady history of achieving greater and still greater financial results and passing them along to shareholders. Its strong track record of performance shows it to be a prudent steward of investors' money.
  
     Such an unwavering commitment to dividends is becoming ever more difficult to find.  In fact, Standard & Poor's released its latest dividend research just last week.  S&P found that among the companies in its 500 Index, 36 have cut dividends a total of 46 times in 2008.

     I'd venture to guess that you own a company that has reduced its payout this year. The ramifications of those drastic cuts -- most from banks and other financial institutions -- has been utterly devastating.  Individual investors, people like you and me who count on this income, lost a collective $33.3 billion.

     In my mind, these dividend cuts -- and the business practices that lead to them -- amounts to a violation of trust. I can't in good conscience recommend any of those companies to income investors, and it will take years of steady and increasing payouts before I could consider recommending them again. 

     That's why it was important to me that the company I'm going to tell you about didn't contribute a single solitary dime of that looting of investor money. Its dividend has not been cut.

     The Reason Why this Company is Special

     This company is a high-tech manufacturer in Taiwan.  It's one of the most respected suppliers in the world of the essential components behind flat-screen displays.  These displays are found in cell phones, navigation systems and laptop computers, among hundreds of other applications.

     These popular devices -- many of them cultural mainstays here in the United States -- are becoming the new "must haves" in countries with emerging middle classes.  You see, as prosperity increases, people who have only dreamed of such devices become able to actually afford them.  The working class in countries like Brazil, China, India and other developing nations around the world have pulled themselves up by their bootstraps and are clamoring for iPods, digital cameras and smartphones.

     And while it's true that these countries' economies are slowing somewhat as the difficulties in the U.S., Europe and Japan ripple throughout the global economy, the International Monetary Fund estimates the world will still see growth this year of more than +3.0%. The figure is expected to be at or about +2.2% in 2009, with the IMF and others predicting a recovery sweeping the global economy in the latter part of next year.

     When -- not if, but when -- that happens, consumers who have done without will engage in a little "retail therapy."  Think back to the time in your life when finances were a little tight. After months of eating at home, it felt pretty good to finally be able to take the family to a restaurant for dinner.  We've all been there.  And that scenario, writ large across the worldwide economy, is going to put people from Paris to Pittsburgh in a buying mood. The is one of the many companies that is going to be benefit from that pent-up demand, and therefore likely pay a large insight dividend.

     Phenomenal Growth Means a Phenomenal Insight Dividend

     This company has grown its revenues by a factor of three since 2004 and seen its net income surge by a factor of four.  It has passed that on to its owners, making payments in the past 12 months totaling nearly 20% of the current price.

     This leading supplier is also, I am happy to report, a company of great integrity.  When much of the industry was caught up in a price-fixing scandal (recently reported in The Wall Street Journal) and ordered to pay some $565 million, this company had nothing to do with it.  Well-known names such as Sharp and LG Display weren't so lucky. To be fair, Samsung was cleared. But this company wasn't even mentioned. It's above such shenanigans. 

     Such strong historical growth and such a commanding market position make this a sound enough buy. The current dividend is icing on an already rich cake. 

     But this company is going to up its payout to investors.  I'm telling you, it's going to lead the league.  I took an honest black pencil to its books.  I even discounted its future results -25% just to err on the side of caution.  Even after that, I'm still confident this company will engineer a special one-time payout that could amount to more than 165% for some investors.

     How is that payment possible for a company -- and a high-tech manufacturer at that -- to devote so much of its resources to dividends given their already strong payouts and a worldwide recession?

     Note: We want you to fully understand this concept, so we're continuing this article on our website, where we have unlimited space. Follow this link to continue learning about insight dividends.
   
Many happy returns,





-- Andy Obermueller
Co-Editor
Global Dividend Opportunities
GlobalDividends.com
839-K Quince Orchard Blvd. 
Gaithersburg, MD 20878-1614

P.S. -- Don't miss a single issue! Add our address, Research@GlobalDividend.com, to your Address Book or Safe List. For instructions, go here.


Income Notes

World Wrestling Entertainment (NYSE: WWE) is generating strong cash flow, which it is passing on to shareholders. WWE said it can fund its dividend for the long term and cited its robust balance sheet and ability to produce cash. These shares are a dividend smack-down, yielding 12.3%.

-- Andy Obermueller


Moody's Investor Service raised its forecast for global corporate defaults to more than 10% during the next 12 months, citing the likelihood of a "deep and protracted" U.S. recession. A month ago, Moody's pegged the high-yield default rate at 7.9%.

-- Bloomberg


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