the secret to securing incredible retirement income
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Some say buy and hold is dead. I say, buy to hold is a great way to secure incredible income for retirement as my personal experience buying to hold ConocoPhillips, Phillips 66 and Enterprise Products Partners demonstrates.TRANSCRIPT
The Secret to Securing Incredible Retirement Income
Photo credit: Flickr/Aaron Patterson
You have one incredible edge on Wall Street
.
You can hold a stock for years never feeling the need to sell because it’s not the stock everyone
else is buying these days.
In buying to hold you can secure market beating
long-term gains…
…as well as save money on taxes and fees.
To top it all off you can also secure an incredible
income source for retirement.
To top it all off you can also secure an incredible
income source for retirement.
Photo credit: Flickr/khrawlings
My story:
From 2007 to 2011, I made several small investments in the energy sector. I bought units of
pipeline and processing company Enterprise Products Partners and shares of energy giant
ConocoPhillips.
My story:
The goal was to add income producing investments to my portfolio to provide income
when I retire in a few decades.
The result:
Exceptional income growth:
Company Average Purchase Price
Annualized Dividend at
First Purchase
Historical Yield on
Initial Investment
Current Annualized
Dividend
Yield on Initial
InvestmentIncome Growth
Enterprise Products Partners 27.18$ 1.96$ 7.21% 2.84$ 10.45% 44.90%ConocoPhillips* 43.97$ 2.00$ 4.55% 2.76$ 6.28% 38.00%Phillps 66* 21.68$ 0.80$ 3.69% 2.00$ 9.23% 150.00%*Note: Phillips 66 was spun off from ConocoPhillips and the numbers have been adjusted to reflect that event.
This income growth isn’t likely to end anytime soon
because each company has a visible pipeline of growth opportunities.
Enterprise Products PartnersWhy to expect continued income growth:• Nearly 80% of its income is diversified and secured by fee-
based contracts.• Retains about a third of its distributable cash flow to
reinvest in growth projects. • $6.8 billion of major capital growth projects under
construction. • America’s energy boom will continue to fuel growth
beyond current project pipeline.• Has one of the highest credit ratings among MLPs.
Enterprise Products PartnersWhy to expect continued income growth:• Nearly 80% of its income is diversified and secured by fee-
based contracts.• Retains about a third of its distributable cash flow to
reinvest in growth projects. • $6.8 billion of major capital growth projects under
construction. • America’s energy boom will continue to fuel growth
beyond current project pipeline.• Has one of the highest credit ratings among MLPs.
ConocoPhillipsWhy to expect continued income growth:• Oil-rich reserve base spread around the world. • Near term focus to grow production and
margins by 3-5% annually through 2017. • Major growth opportunities in the Deepwater
Gulf of Mexico, North American unconventionals, and offshore Africa.
• Strong balance sheet with A rated debt.
ConocoPhillipsWhy to expect continued income growth:• Oil rich reserves base spread around the world. • Near term focus to grow production and
margins by 3-5% annually through 2017. • Major growth opportunities in the Deepwater
Gulf of Mexico, North American unconventionals, and offshore Africa.
• Strong balance sheet with A rated debt.
Phillips 66Why to expect continued income growth:• Focused on growing its higher margin chemicals
and midstream businesses. • $12 billion in growth capital projects through
2016. • Well positioned to profit from the North American
energy boom.• Committed to maintaining a conservative debt-to-
capital ratio of 20-30%.
Phillips 66Why to expect continued income growth:• Focused on growing its higher margin chemicals
and midstream businesses. • $12 billion in growth capital projects through
2016. • Well positioned to profit from the North American
energy boom.• Committed to maintaining a conservative debt-to-
capital ratio of 20-30%.
Investor takeawayThree keys to success:
1. Each company has a visible near-term growth plan that will keep the dividend growing.
2. Further, all three companies are well positioned to take advantage of the world’s never ending need for energy.
3. Finally, each has maintained a strong balance sheet to fund growth as well as to weather any storms that may arise.
Investor takeawayThe secret to securing incredible retirement income is simple.
Invest in solid dividend paying stocks with a history of raising their payout.
Look for companies with strong near and long-term growth prospects and low debt levels.
Buy to hold and the income produced will go a long way to securing your retirement.
Our special report on securing your retirement.