The most trusted income investor in America teams up with the G-8 Summit's pick as the "world's leading energy analyst" to create an unprecedented new investing service.
Energy & Income Advisor
"Our readers turned $20,000 into $347,400 in a single stock. We've found 3 more equally explosive opportunities we want to tell you about today."
They're back! Two of America's highest-ranked investment advisors
are once more combining forces to bring investors energy-based investments yielding 9.1%, 14.9%, 12.4% and even up to 18.5%.
In this bulletin, Roger Conrad, possibly the most widely followed income-investing expert in the country teams up with Elliott Gue, the crack energy analyst whose picks have tripled the S&P 500... to identify three major profit centers every income-oriented investor needs to own now.
Dear Investor:

There is clearly no investing sector like energy.

Plenty of sectors get hot from time to time and can make you good money. Biotech was hot in the '80s... dot-com boomed in the '90s... gold has been on a run since 2003.

But energy is a different animal.

This sector is always in play... and the best energy investments routinely hit it out of the ballpark, year after year—even in recession.

Consider this:

In September, 2008 Wall Street crumbled. Major banks became beggars. The U.S stumbled into the Great Recession and the not-so-great recovery.

Despite all this, in 2008 and 2009, investors who bought our Bakken oil recommendations are now ahead by anywhere from 177% to 223.5%.

The right energy stocks are financial juggernauts that chug ahead through just about anything. But some are also so explosive that a $20,000 investment handed our readers a $347,400 profit in less than seven years. That was in an offshore driller that was paying us almost 12% when we bought it.

That home run was a perfect example of the good things that can happen when you find a solid energy operation that shares the wealth with generous dividends.

Even though that drilling stock has skyrocketed, it's still a good buy (and continues to yield almost 9%). But at this point we're looking at three even better opportunities to score a repeat of that sort of massive success.

We'll get to all three in a minute. But first it's important to understand why energy stocks and dividends go together so well...

The "Magic" Combination

We're Roger Conrad and Elliott Gue. We run Energy & Income Advisor — a new online investing service.

We focus on both energy AND income for a reason. Because as I'll explain in a minute, if you specialize in energy stocks like we do, sticking to the yielders is a very smart strategy.

We've studied energy stocks and income stocks separately for decades. But in the past few years it's become clear that something magical happens when you combine these two themes into a single investment (just as we saw with the 12%-yielding driller which turned $20K into $347,400 for us).

You can see this for yourself by running a few simple stock screens. If you do, a few fascinating facts jump out.

First, you'll notice that only 4.8% of U.S. stocks are in the energy sector. But 40% of the stocks yielding more than 6% are in energy. And here's what's really amazing. When you rank this last group by their total return over the past 10 years... seven of the top 10 are energy stocks.

Look at this list of the top-returning stocks (yielding 6% or more) that we generated from our Bloomberg machine. Those are some huge return numbers. And note how energy-heavy this list is.

Company Yield 10-Yr Return Mkt Cap Industry
HollyFrontier (NYSE: HFC) 6.5% 1,720% $9.8 billion Oil refining
Alliance Resources
(NASD: ARLP)
6.5% 994% $2.7 billion Coal
Energy Transfer Partners
(NYSE: ETP)
7.4% 590% $20.8 billion Oil / gas pipelines
Corrections Corp. (NYSE: CXW) 7.6% 565% $3.9 billion  REIT
Kinder Morgan Energy
(NYSE: KMR)
6.2% 428% $10.1 billion Oil / gas pipelines
Medallion Financial (NASD: TAXI) 6.5% 410% $0.3 billion Credit services
Martin Midstream (NASD: MMLP) 7.2% 398% $1.2 billion Marine Energy Transportation
Kinder Morgan Mgt. (NYSE: KMP) 6.1% 352% $31.7 billion Oil / gas pipelines
PVR Partners (NYSE: PVR) 8.6% 335% $3.3 billion Natural gas / coal
Skyworks Solutions
(NASD: SWKS)
7.7% 310% $4.6 billion Semiconductors

All sorts of stocks pay dividends. But 70% of the top gainers on this list are in just one business—energy. That's WAY more than you would find by chance alone.

That includes stocks like Holly Frontier Company (NYSE: HFC), which has returned 1,720% and pays 6.5% each year. And Energy Transfer Partners (NYSE: ETP), which thanks to its 7.4% dividend has returned investors 590% in the past 10 years. Looks to us like if you're after profits that could change your life, dividend-paying energy stocks are a good place to start.

Energy + Dividends = Wow!

Energy stocks in general have had a nice run over the past 10 years—even the non-yielders. In fact, over the past decade, oil and gas stocks that didn't pay a dividend threw off a median return of 141%.

That's not bad... considering the market in general was up 113%. But if you had invested in only the dividend payers -- those paying any dividend at all, no matter how small -- your median return was 398%. In other words, energy stocks that pay dividends almost tripled the performance of what was already one of the market's strongest sectors.

We're not saying you'll become filthy rich by putting a few thousand bucks in any energy stock that pays a dividend. But it's plain that investing in energy stocks improves your chances... and that goes double—or triple—for the dividend payers.

But is energy itself a good bet from a big-picture macro standpoint right now?

We think so. We don't have a crystal ball, but with so many forces converging, it looks like the odds favor high energy prices rather than lower:

  • In 20 years, the world will need the equivalent of four new Saudi Arabias to meet demand.
  • Countries that used to be too poor to consume as much as we do in the West are catching up fast.
  • Emerging markets across the board are growing faster than experts predicted, driving both industrial and consumer demand for energy.
  • China continues to industrialize. In the next decade China will need 50% more energy just to keep growing.
  • India is revving up its industrial base too. And, India will continue to scour the world markets for all the energy it can get.
  • The International Energy Agency estimates that the world will have to invest at least $20 trillion over the next 20 years just to offset shrinking reserves of "easy oil".

But the bullish case for energy is only half the equation here at Energy & Income Advisor.

We're just as interested in analyzing the income side of things.

Remember, the energy stocks that paid dividends almost tripled the performance of those paying no dividends over the past decade.

ROGER CONRAD
How the "Tortoise King" Wins the Race
"My most valuable investing trait? At the risk of sounding dull, I'd have to say it's patience.
Maybe that's why they call me the "Tortoise King." I'm not sure it's a compliment, but it works for me.
Starting in the late 1980s—when I was still in my 20s and just getting started in my career—I opened a series of dividend reinvestment plans. In 1992, I put $250 in what was then Texaco, and now is Chevron. It seems like nothing today, but that was a fair chunk of money for me at the time.
Now I wish I had put in more. A lot more! Because over the past 20 years, that $250 has grown to nearly $10,000, all on its own, just by reinvesting its rising stream of dividends and watching the company grow. Same goes for some hugely successful DRIPs I bought for Philadelphia Suburban (now Aqua America), Dominion Resources and other "boring" utility companies.
I've made plenty of mistakes over my investing career, but one thing I did right is to leave these investments alone, and let these great companies grow and pay me more every year. And I've never forgotten that, no matter how hairy the markets have gotten at times."

So let's look at where we're finding the best yields in the energy patch right now. You notice we said "best," not "highest." The truth is, you don't need to flock to exotic securities yielding double-digits to make a pile of money. Even mundane energy-distribution plays like your household electric utility company can make you astounding profits.

Take Southern Company (NYSE: SO), for example.

Southern is an energy powerhouse. This $40 billion operation generates electricity using natural gas, oil, coal, uranium and water power... and distributes it across the southeastern U.S.

It runs 33 hydroelectric stations, 32 fossil fuel plants, three nuclear plants, 13 cogeneration stations, four solar facilities, a landfill gas facility and a biomass facility.

Except for its massive size and diverse generation base, this is pretty run-of-the-mill stuff for a utility. But Southern's stock returns have been anything but routine.

Since we recommended buying Southern's stock in 1994, the company's share price has increased 251%. Add in reinvested dividends, and our total return jumps to 802%.

Our success with Southern demonstrates a key point that no investor should ever forget: When you see a truly massive stock gain over a long holding period, you're usually witnessing the juggernaut effect of reinvested dividends.

Over the decades, dividends are responsible for about 40% of the stock market's total return. This has a much bigger impact than you might expect.

$10,000 invested in the S&P 500 at the start of 1960 would be worth $262,013 today. But with the dividends reinvested it would be a whopping $1,364,672. That's an extra million dollars that you can chalk up to the lowly dividend.

Since dividends are such a critical part of making big money in the market, it stands to reason that the energy sector, with its abundance of high yielders, is a fertile hunting ground. In fact, when you figure out where to look in the energy sector, you almost can't avoid finding high yields. For example...

Sandridge Permian Trust (NYSE: PER), a royalty trust, yields 17.7%.

Memorial Production Partners LP (NSDQ: MEMP), a natural-gas producer organized as a master limited partnership, yields 10.6%.


Calumet Specialty Products Partners (NSDQ: CLMT), which owns refineries and produces specialty hydrocarbon products, yields 10.7%.

Why are yields so high in the energy patch? For one thing, business is good. But a more important reason is that many energy companies receive special benefits from our own government, allowing them (even forcing them sometimes) to pay big yields.

You'll find many of these "preferred status" companies in Energy & Income Advisor. In fact, you'll see a few in this bulletin, when we reveal our three favorite high-yield niches of today's energy market.

The first is a business so cash heavy that it pays dividends reaching 17.6%% per year... the second is a shockingly large oil deposit in California that could set up smart investors for life ... and the third is a 344–year–old business up north that has been making investors wealthy for centuries.

ELLIOTT GUE
Sticking to One Thing and Doing It Well
I'm an energy guy. Always have been and always will be.
Now and then I envy those investing dilettantes who flit around from one "hot sector" to the next. I'll be the first to admit there are plenty of fascinating nooks and crannies in the markets apart from energy - and other ways to make decent money, too.
But I can assure you that I wouldn't have been invited to address the G-8 conference in Tokyo if I had been a jack-of-all-trades. When you spend your entire investment career focused on one sector you develop an invaluable perspective - and a good grip on the big picture. And that's an advantage that no generalist will ever have.
This perspective has proved to be lucrative. For example, when fear-mongering pundits claimed that the Macondo oil spill marked the end of offshore drilling, I explained to the crowds at the 2010 San Francisco MoneyShow that the death of deepwater exploration and production was greatly exaggerated. Investors who heeded my contrarian call were handsomely rewarded after investing on shares of contract drillers and equipment providers.
So I'll stick to what I know best. And I have no doubt I'll stay busy: the energy industry is so complex, varied and far-reaching that it offers more opportunities than a single investor could take advantage of in a lifetime.
New Service, Old Timers

Energy & Income Advisor is a new service, but we've been covering energy stocks for a long time. Just ask anyone who racked up these gains with us:

  • 199.9% on integrated energy giant Eni (recommended 2003)
  • 174.3 on refiner Valero Energy (recommended 2009)
  • 441.3% on deep-water driller SeaDrill (recommended 2009)
  • 498.4% on international driller China National Offshore Oil (recommended 2004)
  • 128.2% on Brigham Exploration (recommended 2010- Acquired)
  • Atmos Energy, which we bought in 2002 and which is up 188.2%
  • Chevron Corp, which we also bought in 2002 and which is up 318%
  • Pembina Pipeline, a Canadian income trust we bought in 2005 and which is up 257.7%
  • Energy Transfer Partners, an MLP we bought in 2004 and which is up 196.5%
  • CMS Energy—bought in 2004—now up 265%
  • Dominion Resources—bought in 1989—now up 581%
  • Duke Energy—bought in 2004—now up 374%
  • Entergy Corp—bought in 1990—now up 538%
  • MDU Resources—bought in 1990—now up 805%
  • Southern Company—bought in 1994—now up 1116%
  • Energen Corp—bought in 1995—now up 881%
  • Enterprise Prod Partners—bought in 2000—now up 670%
  • Keyera Corp—bought in 2005—now up 776%
  • Pembina Pipeline Corp—bought in 2004—now up 607%

You can see from our buy dates how long we've been following energy stocks. We bought Entergy Corporation and MDU Resources way back in 1990. It's no coincidence that these long-term holdings are among our biggest gainers.

Over the years, we've released our research in a variety of services, including Utility Forecaster, The Energy Strategist, MLP Profits and Canadian Edge. Each one focused on a different sector of the energy complex—always with a strong bias toward the more generous dividend payers in the space.

Now, after a combined 41 years of stock-picking experience, we're venturing out on our own, completely independent and beholden to no one but our subscribers.

We're launching our own service to share the most lucrative energy opportunities we can find, with a special focus on generous payers, such as master limited partnerships, royalty trusts and select Canadian stocks.

Whether it's oil, coal or natural gas... offshore drillers, shale plays or shipping firms... explorers, pipelines or renewables... by focusing 100% on this crucial sector, we can often detect trends before they reach the mainstream media. It's what we've already been doing for decades... only now we're doing it on our own.

If you like what you see of our research here today, try a no–risk trial subscription to our online advisory service. When you come on board, we'll give you a series of free bonus reports explaining, in much greater depth, the recommendations you see here.

Now let's get to work and dig into our three favorite cash-cow energy opportunities...

Monster Energy Yielder #1
Huge Yields, Tiny Taxes
The Best Investment that Nobody Talks About

The first securities we want to tell you about aren't stocks, and they aren't bonds, either. But they are one of the top performing investments on Wall Street over the past 10 years –– up 311%. Common stocks are up just 103% over that stretch.

These "oddball" securities are called master limited partnerships, MLPs for short. MLPs have two overriding characteristics. They are overwhelmingly in the energy business... and they usually pay enormous dividends.

In other words, they are perfect for our energy-income investing style. They give you the same double whammy that has propelled so many of the big winners to the top of the returns chart we showed you earlier.

If you'd like a nice inflation hedge that pours a steady stream of cash into your portfolio, cash that is tax-free potentially forever, you need to check out MLPs.

It's hard to believe in this day and age of taxes everywhere you turn—but MLPs get a complete pass from the tax man. So they pass all their cash flow on to you... and because of a quirk in accounting law, you might never pay taxes on the distributions you get at all!

Just think how much faster your nest egg would multiply if every dividend dollar you earned stayed in your own account, and none ended up in Uncle Sam's.

Apart from that sweet tax break, what we love most about MLPs are their ever–rising distributions. No other asset class hikes its distributions more consistently than MLPs do. Some MLPs have hiked them for more than 40 quarters in row.

What are they so dependable? Because many MLPs operate "midstream" energy assets–– pipelines, storage tanks, terminals, etc.

In other words, they profit from moving energy, not from digging it up and selling it. .. so the more energy the world uses, the better.

If you prize high yields it doesn't get much better. The 10 most generous yielders in this space right now throw off an average yield of 12.9%.

Soaring yields attract most investors to MLPs. But there's a growth story here too. Plenty of MLPs have been capital gains bonanzas for investors. Buy into these cash cows, hold on for the long term, and you could make a fortune. Plenty of investors already have.

Check out what happened with Kinder Morgan Energy Partners...

If you had put $10,000 in Kinder Morgan at its launch in 1992, you would have gotten 430 shares for your money. Now, after two 2:1 splits, you'd have 1720 shares worth $151,360. And you'd be pulling in $8,944 in dividends annually—an 89.4% yield on your initial $10,000 investment—every year! And let's not forget the $88,509 in dividends you would have already pocketed over the years.

Of course, if you had reinvested your distributions you'd be even happier. You'd now have 7,380 shares worth $649,440. And you'd be set for another $38,376 payout this year. (That's almost four times your initial investment!)

Right now, we see only a handful of MLPs offering the right mix of income and financial strength to make them "buys" at current prices.

To make it easy for you, we have written up all seven in one report,, Mile-High Dividends: Your Pipeline to Lifetime Tax-Free Wealth. I'll tell you how to get it in a second.

One of the picks in this report is a fairly new MLP that captured our attention because of its break-neck growth trajectory, recent insider buying frenzy, and its healthy 8.7% yield. If you're hungry for cash dividends and growth, you want this one. It is an upstream MLP operating in Kansas' Hugoton basin, mainly in oil production.

Its growth projections are astounding. It paid out $1.49 in FY2012 and is on track to distribute at least $1.98 in FY2013. And your income is almost guaranteed because the partnership is hedged through the end of 2014.

With an 8.7% yield, they'll be making plenty of cash even if this dividend king's share price never budges.

 

Monster Energy Yielder #2
The Lazy Investor's Way to Riches
These Phantom Companies Do Nothing
and Still Pay You Up to 18.1% a Year

Who doesn't feel like kicking back from time to time and getting paid for doing nothing?

We've found a tiny class of 29 companies that let you do just that.

They are called "royalty trusts" and they let you stake a claim in some of the richest oil & gas finds on the planet without lifting a finger.

Their track record is phenomenal. Their average return over the past 10 years is an astounding 718%.

But it's a tiny industry. There are only nine of these trusts in the entire country above $500 million in market cap—a pittance on Wall Street.

It's not even really an industry, so much as an accounting creation. Royalty trusts exist solely to finance wells... collect royalties on production... and distribute the money to shareholders.

They have no physical operations of their own. They don't own office buildings, explore for oil or buy equipment. They don't have to worry about insurance or maintenance. They don't even have employees.

They're just legal entities administered by bankers who collect royalties from the oil and gas drillers... and pass the royalties along to you—without paying a penny to the IRS.

Once you own an interest in one of these wells, you collect a few cents every time the company sells a barrel of oil or a cubic foot of natural gas.

Just like the master limited partnerships we discussed a minute ago, as long as the trust pays shareholders at least 90% of its earnings, it's exempt from corporate taxes. That's why almost all of the earnings "pass through" directly to shareholders in the form of royalties.

One entry in this sector -- BP Prudhoe Bay Trust (NYSE: BPT) -- has returned 1,495% over the past 10 years. If you had bought 1,000 shares back then it would have set you back $14,730. You'd have collected $80,026 in dividends by now... but if you had reinvested those dividends, your stash would be worth $235,091.

Another one we found, Mesabi Trust (NYSE: MSB) has seen capital gains of 362% over the past 10 years. That turns every $10,000 invested into $46,200. That's pretty good... but when you include its dividends, your $10,000 is actually worth $110,208.

Why are these returns so high? Because they issue such big royalty checks! 10 of the 29 companies in this class yield more than 10% per year.

We think every investor should have a few of these cash machines in their portfolio. We especially recommend a trust we've found that owns about 1,000 oil wells in West Texas. There's nothing glamorous about its business... so when the rights to buy a stake in these oil wells went on market, they were valued cheaply. We watched carefully as this new trust handily exceeded all production estimates for both oil and natural gas.

We've put everything you need to know about this trust in a second report called Mega-Dividends: Oil and Gas Trusts with Yields of up to 16%.  You'll see how to get your copy in a moment. And it won't cost you a cent. But first let's look at one more big-picture energy opportunity...

 

Monster Energy Yielder #3
The 14%-Yielding Secret of Santa Maria
California Shocker!

If you agree with us that the secret to a home run investment is to get in before "the crowd," this next opportunity is perfect for you. Because we can guarantee you that very few people realize that two-thirds of our country's entire shale reserves are in California.

You don't hear much about it, but lurking beneath a maze of California highways lies the Santa Maria surprise--one of the most unusual geologic deposits on earth... a vast sea of oil created by ancient algae deposits dating from the Jurassic Period.

This single deposit accounts for about 65% of the US Dept of Energy's estimate for total oil recoverable in the Lower 48. That's quadruple the reserves of the much-hyped Bakken Shale!

The Santa Maria shale play covers more than 1,700 square miles and contains about 15 billion barrels of recoverable crude oil.

What's more, because of regional pricing differences, oil like this sells for 20% more in California than in the rest of the country. So you can add 20% to any valuation estimates on this massive pool of energy just because of where it sits.

We've got our eye on a Bakersfield company that's tapping into these billions of barrels of oil right now. This outfit gives you prime oil exposure across a high-quality asset base in premium-priced California markets.

It pays 14% as we speak, and in a nice touch, it pays you monthly. Like clockwork. These payments aren't stopping anytime soon either, because the company is 70% hedged on all oil and natural gas production until 2014. So you won't get any nasty surprises to your cash flow.

This is a lucrative opportunity. An 11% yield now and a projected dividend increase of up to 70% next year. Not many companies can claim a rising 11% dividend. Because it's still a relatively new story, the Street is still asleep on this one. We're scooping up shares now while it's still a bargain.

It's just a hunch, but we think you'll be hearing a lot more about the Santa Maria surprise in the coming years. You will certainly hear a lot about it in future issues of Energy & Income Advisor.

  • Two issues of Energy & Income Advisor each month that contain Elliott and Roger's in-depth analysis of global energy markets and investment opportunities
  • Access to our Focus List, Elliott and Roger's top stocks in today's market, and two Model Portfolios that are sorted by risk, from conservative holdings that you can buy and forget to riskier fare that offers the potential for explosive returns
  • Unmatched coverage of oil and gas royalty trusts and initial public offerings in the energy patch
  • Vital statistics on all 99 energy-focused MLPs, as well as Elliott and Roger's invaluable insights, comments and analysis. Our MLP Ratings table is a must-read for any serious investor with money in master limited partnerships.
  • Roger Conrad's expert coverage of more than 70 dividend-paying Canadian energy stocks. Energy & Income Advisor is your top resource for fat yields and huge returns North of the Border.
  • Actionable Alerts that notify you of buying opportunities or analyze stock-specific developments.
  • Exclusive monthly Live Chats in which subscribers can fire away with any stock-specific or market-related question that might be on their mind. Other analysts charge as much as $5,000 for this level of access.
  • A Free Bonus Subscription to Capitalist Times Premium ($99 value), our generalist investment advisory.
Act Now! This Limited-Time Offer Expires on Friday November 15

In investing, time is money: This 45% discount to Energy & Income Advisor will only be available through Friday November 15 at 5PM ET.

Or Call Sherry at 1-888-960-2759 to Place Your Order over the Phone

Sign-up today and you’ll also receive the following special reports:

  • Top 3 MLPs for 2014 and Beyond
  • Red, White and Blue: Super-Size Your Profits with America’s Energy Renaissance
  • Deep-Sea Treasure: Build a Seven-Figure Portfolio with the Final Frontier for Oil & Gas
  • Mile-High Dividends: Your Pipeline to Lifetime Tax-Free Wealth!

Only you can decide if our new service is right for you. So please take the next 30 days to read the issues, special reports and alerts, visit the website, look at the archives, buy a few of our recommendations – whatever you need to feel comfortable. At the end of that time, if you don't think Energy & Income Advisor is right for you, we send your money back. It's that simple.

Or Call Sherry at 1-888-960-2759 to Place Your Order over the Phone

All sorts of stocks pay dividends. But when you sift through the real cash cows–stocks yielding 6% or more–seven of the 10 top long-term winners are in energy. And they averaged a 688% gain each.

Clearly, if you're after profits that could make a real difference in your financial situation, dividend-paying energy stocks are a good hunting ground.

We're putting everything we know into our new service... and you can try it before you decide to buy it. So why not take us up on that 30-day trial period and see for yourself?

 

To Your Wealth,

 

Roger Conrad Elliott Gue