Reliability should be in every investor's vocabulary.
Dependable, time-tested, rock-steady...
Take your pick — these are the stocks that will come out on top every time.
But is it really a secret that avoiding unnecessary risk in today's market is the best way to build wealth?
Over the years, I've found that my most profitable investments have come from solid infrastructure stocks with a strong track record of raising dividends. If you've been a regular reader of these pages, you know the kinds of plays I'm talking about...
Nearly two years ago I told readers that pipeline stocks operating in North America would only get better with age.
With thousands upon thousands of miles of interstate and intrastate pipelines transporting natural gas across the United States, they're the bread and butter of our oil and gas industry.To keep pace with our growing gas demand, the U.S. needs to spend more than $205 billion in new infrastructure over the next two decades:
So, how did readers who listened to me fare with pipeline stock investments?
Just take a look at Enbridge's performance over the last ten years compared to three of the world's six major supermajor oil companies:
Believe me; our bullish outlook on pipeline stocks hasn't changed in the slightest — and the annual dividends these companies pay to investors only add to their value.
There's a handful of MLPs in the oil and gas sector offering very attractive yields.
And Enbridge isn't an anomaly.
Another pipeline player, Kinder Morgan Energy Partners (NYSE: KMP), recently completed their acquisition of El Paso Corporation.
The company currently offers an annual yield over 6%:
Now, these plays won't deliver you a ten-bagger overnight.
But you know what? They don't have to!
We're talking about stocks that can shelter investors from economic crashes and even act as a safeguard from wild swings in commodity prices.
Individual investors like you and me could have bought Enbridge or Kinder Morgan ten years ago, and all we have to do is check up on them once or twice a year... then sit back and collect.
Some might consider these kinds of plays boring — but that's one of the reasons we like them so much.
In fact, let's take this notion of "boring investments" a step further...
Think Bigger, Invest Safer
The only way to think bigger is to think global.
The United States isn't the only country that needs to spend huge amounts of capital building and repairing its crumbling infrastructure.
Over the next several years, nations around the world will help investors realize the long-term value in infrastructure investing as they pour money into projects to improve roads, bridges, dams, seaports — the list is long and varied.
And the amount being spent on these future projects is absolutely staggering.
We're talking up to $50 trillion earmarked to improve global infrastructure.
Now, my long-time readers know I'm not one for day-trading... I'll take a solid-paying dividend that'll still be sending me checks fifty years from now over a penny stock that could lose its entire value in this recession any day.
When I brought that fact up during a conversation with my colleague Jeff Siegel earlier this week, the knowing smile he gave me spoke volumes.
You see, Jeff's been doing research on infrastructure stocks for a long time.
Unlike the oil and gas investments I mentioned earlier, Jeff's latest infrastructure plays aren't just limited to the United States; these companies are operating on a global scale...
And each one is paying 3%-5% dividends.
Jeff details these three global powerhouse companies in his newest report — available right here.
Until next time,
A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.