'Response.redirect ("http://www.dailydividends.com") %>
A 9% Yield From A "Strange" MLP
Tuesday, November 27, 2012
Printer-Friendly | PDF Version | Whitelist Us  | Also visit StreetAuthority

A 9% Yield From A "Strange" MLP

-- By Carla Pasternak

This MLP isn't like traditional MLPs in the sense that it doesn't transport oil or natural gas. But don't let that shy you away, this unique investment pays up to 9% dividend yields. (Full Story Below)

Also in Today's Issue...

Finally, The Dividend Trifecta is Revealed...
We've invested $200,000 of our own money into proving this system works. Early subscribers love it. Now, you can discover it's power to produce added income to your portfolio too. This goes beyond ordinary dividend stocks. Click here for details.
A Secret World of Wealth that Pays 90%
There is a secret world of wealth where the government forces companies to pay 90% of their profits to investors like you. Discover how you can claim a sizeable stake in this secret world by using this odd, but legal loophole. Click here now.

A 9% Yield From A "Strange" MLP


That was the number of people on this planet as of early November.


By the time you read that number, however, it will be completely out of date. Hundreds of people are added to the world population every single minute.

By 2050, roughly 9 billion people will live on the planet, about 30% more than at present.

And every member of this growing population needs food to survive.

So, the big question for us today is: How do we income investors take advantage of a growing demand for food?

We could buy food producers like Dean Foods (NYSE: DF), but it yields 0%. Meat processor Hormel (NYSE: HRL) isn't much better, yielding a scant 2%.

I think the most compelling opportunity comes from a little-known niche of master limited partnerships (MLPs) that yield up to 9%. These rare MLPs don't have anything to do with gas and oil pipelines like most limited partnerships. Instead, they produce and sell a good that's never been more important -- fertilizer.

Population growth drives fertilizer demand. Every year, 75 million more people must be fed. At the same time, people in emerging nations are also eating more meat, which increases demand for grains. Today, roughly 35% of the world grain harvest was fed to animals.

In the United States, nitrogen fertilizer -- the fertilizer of choice for corn -- is in the sweet spot. This year, U.S. farmers dedicated the most acreage to corn since 1937, according to the U.S. Department of Agriculture.

Drought is also playing a role in increasing demand. The recent drought in the United States was the worst since 1956. Its effect on U.S. fertilizer demand next year is generally seen as positive. Analysts note that corn prices are extremely high and expected to remain elevated into 2013, thanks to the drought. As a result, fertilizer use will be high in the year ahead.

Not all analysts are optimistic. Some argue that since a significant number of corn farmers earned lower incomes in 2012 and their fields are still parched, farmers will restrict 2013 planting and buy less fertilizer.

However, nitrogen fertilizer companies themselves -- such as Rentech Nitrogen Partners (NYSE: RNF) -- are bullish. Rentech's CEO says he "expects the drought to have a favorable impact on nitrogen prices and demand for the remainder of 2012 and 2013."

The partnership's location in Illinois, the heart of corn country, also provides a key strategic advantage. Trucks can load directly at the Rentech facility and apply the fertilizer at the critical time in the growing cycle. Combine that with a solid yield of close to 9%, and you start to understand why the shares have soared -- nearly doubling in the past year.

Over the long term, the partnership is poised to benefit from increasing demand for nitrogen fertilizer.

One more note for when you're looking into MLPs like Rentech Nitrogen Partners.

Since these partnerships can throw off unrelated business taxable income, which is taxable even in a tax-sheltered account, the units are best held outside a tax-deferred account.

Good Investing!

Carla Pasternak's Dividend Opportunities

Disclosure: Neither StreetAuthority nor Carla Pasternak own shares of the securities mentioned in this article. In accordance with company policies, StreetAuthority always provides readers with at least 48 hours advance notice before buying or selling any securities in any "real money" model portfolio. Members of our staff are restricted from buying or selling any securities for two weeks after being featured in our advisories or on our website, as monitored by our compliance officer.

Income Notes

Las Vegas Sands (NYSE: LVS), the casino operator that owns casinos in Las Vegas, Singapore and Macau, just announced it is paying its shareholders a one time special dividend of $2.75 to shareholders of record on December 10.

-- Research Stafff

The $1,357 Per Month Dividend Strategy

This strategy can help you earn tens... hundreds... even thousands of dollars each month for the rest of your life -- whether you're 28 or 88... whether you're a millionaire or just getting started... and whether you have an MBA or didn't graduate high school.

Click here to learn more.

Breaking News

7 Stocks Yielding Up To 14.5% That Could Protect You From Uncle Sam

In light of the coming tax hikes, companies could start favoring share buybacks over dividend increases. Here's seven high-yield stocks that are buying back shares right now...

Read On...

The 10-Minute Dividend Plan That's Earning $1,358 a Month

I'm earning over $1,300 in dividends a month using this strategy... and it only requires roughly 10 minutes of upkeep.

Read On...

5 Things Every Income Investor Needs to Know Now

If you own dividend-paying stocks, or you're thinking about buying some, you should read this.

Read On...



Home | Issue Archives | About Us | Meet the Staff | Subscribe
Premium Content
Research Reports | Media Coverage | Testimonials | Advertise

Dividend Opportunities is a publication by StreetAuthority, LLC, 4601 Spicewood Springs Rd, Building 3, Suite 100, Austin TX 78759 or www.StreetAuthority.com. You are receiving this newsletter because you visited us at StreetAuthority.com and registered to receive our complimentary investing newsletter -- Dividend Opportunities. If you feel you have received this issue in error, please follow the instructions below to unsubscribe or contact us by visiting our web site.

DISCLAIMER: StreetAuthority, LLC is a publisher of financial news and opinions and NOT a securities broker/dealer or an investment advisor. You are responsible for your own investment decisions. All information contained in our newsletters or on our web site(s) should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision. As a condition to accessing StreetAuthority materials and web sites, you agree to our Terms and Conditions of Use, available here, including without limitation all disclaimers of warranties and limitations on liability contained therein. Owners, employees and writers may hold positions in the securities that are discussed in our newsletters or on our web site.

The information contained herein does not constitute a representation by the publisher or a solicitation for the purchase or sale of securities. Our opinions and analyses are based on sources believed to be reliable and are written in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. All information contained in this report should be independently verified with the companies mentioned. The editor and publisher are not responsible for errors or omissions.
StreetAuthority receives no compensation of any kind from any companies that may be mentioned in our newsletters or on our web site. Any opinions expressed are subject to change without notice. Owners, employees and writers may hold positions in the securities discussed in this report or on our web site.

To Unsubscribe
You may choose to stop receiving our Dividend Opportunities newsletter at any time.
Unsubscribe here.

Subscribe for FREE

Subscribe to Dividend Opportunities today and you'll receive a FREE newsletter three times a week, plus a FREE in-depth research report that identifies some of today's highest-yielding securities.

There's absolutely nothing to purchase, we'll keep your email address private, and you can cancel at any time. You truly have nothing to lose, so take advantage of this no-hassle, risk-free offer today!

Click here to subscribe now.