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3 Great Stock Ideas for Your IRA
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3 Great Stock Ideas for Your IRA

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Freeport-McMoRan, Dow Chemical and PotashCorp all pay a compelling dividend and have visible growth prospects. That makes each a great stock idea for an IRA.

Freeport-McMoRan, Dow Chemical and PotashCorp all pay a compelling dividend and have visible growth prospects. That makes each a great stock idea for an IRA.

Published in Business , Economy & Finance
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  • https://www.flickr.com/photos/76657755@N04/7027606047/in/photolist-bH1jrv-iTXkLr-afoK-ai3FGV-9bsbpu-iU2gF5-8kydss-83GoMM-kJFJou-5VebLt-bxDdFC-d5iWr7-ai5SZV-9RmRtd-dvZoYW-buuSfo-dC18ZX-dC18V8-dC1boV-dC1bfp-dC6BcA-dC6B23-dC1aSX-dC6ALq-dC1aCp-dC6AkL-dC6AeS-dC1a7t-dC1a1K-dC6zYA-dC19MX-dC19FR-dC6zFq-dC19vn-dC6zw3-dC6zqh-dC6zmo-dC6zgf-dC6zc3-dC6yXC-dC6yTL-dC6yN3-dC1asD-dC6By1-7JnA5N-bHpBKP-dwWJbd-GELvc-7GZ55s-9wUwtz
  • https://www.flickr.com/photos/peddhapati/10031708194/in/photolist-6QFDYU-4BfaUm-7987Vs-ght8m7-bH1eiH-bH1gac-62QVb5-62LD8Z-6hSkjK-9htwN2-5KQyH9-chEaLb-4sUYDb-aB7uKh-9PSLHY-fKKcRD-bxDiow-dSXXyh-9VADkr-9gYtwj-6c6Q6r-cEHZc1-bi1bhM-9qREU2-9KU6T1-5WEQZB-8ip71R-4e5gDL-8ip6YF-8ddtDt-8PWifN-bZwdFC-9kNSHL-9kMUQb-4e1gT8-oh2EL-fEHuLF-5yL49b-5WsjQv-a32GWs-chEfau-9qUEUf-9qUDuJ-a32J27-bZwG3C-8ip6Yn-a2Y6J8-64gotj-a2Yc86-5tzhjphttps://www.flickr.com/photos/76657755@N04/7027588775/in/photolist-6QFDYU-4BfaUm-7987Vs-ght8m7-bH1eiH-bH1gac-62QVb5-62LD8Z-6hSkjK-9htwN2-5KQyH9-chEaLb-4sUYDb-aB7uKh-9PSLHY-fKKcRD-bxDiow-dSXXyh-9VADkr-9gYtwj-6c6Q6r-cEHZc1-bi1bhM-9qREU2-9KU6T1-5WEQZB-8ip71R-4e5gDL-8ip6YF-8ddtDt-8PWifN-bZwdFC-9kNSHL-9kMUQb-4e1gT8-oh2EL-fEHuLF-5yL49b-5WsjQv-a32GWs-chEfau-9qUEUf-9qUDuJ-a32J27-bZwG3C-8ip6Yn-a2Y6J8-64gotj-a2Yc86-5tzhjp
  • https://www.flickr.com/photos/peddhapati/10031708194/in/photolist-6QFDYU-4BfaUm-7987Vs-ght8m7-bH1eiH-bH1gac-62QVb5-62LD8Z-6hSkjK-9htwN2-5KQyH9-chEaLb-4sUYDb-aB7uKh-9PSLHY-fKKcRD-bxDiow-dSXXyh-9VADkr-9gYtwj-6c6Q6r-cEHZc1-bi1bhM-9qREU2-9KU6T1-5WEQZB-8ip71R-4e5gDL-8ip6YF-8ddtDt-8PWifN-bZwdFC-9kNSHL-9kMUQb-4e1gT8-oh2EL-fEHuLF-5yL49b-5WsjQv-a32GWs-chEfau-9qUEUf-9qUDuJ-a32J27-bZwG3C-8ip6Yn-a2Y6J8-64gotj-a2Yc86-5tzhjp
  • https://www.flickr.com/photos/40875537@N04/5659908590/in/photolist-chEwR9-bH1iX8-42PQoC-a2YSa6-62QVKf-dTUAhR-QxcaH-7jm7SP-dSZe91-8F5t1j-dUSc9a-a5SwX-68vjKV-68zxeQ-9C9vCS-9ZA9J6-9kJxyv-9uKMHb-68zxij-bDwJ11-dK2oa7-bu6sBd-8usD9K-657VsP-5XW3k4-bbeUhH-61LYTT-dSK3tm-8ismaU-8ism9f-4Kdou8-cnchKE-dmyfCP-doZD-8ismdA-62LFqP-chEbX5-cEJ54Q-8ip6ZZ-cNdyo-knHgd-9htwiK-9VwVc2-8HWvej-62LEPx-bu6pKh-7HedAv-kyBTGB-f54gtt-9qRF8r
  • https://www.flickr.com/photos/86530412@N02/7935377706/in/photolist-d6dTk1-jPp1xW-4SD3ZY-e9Q35R-9FrE1n-eG9uQU-4z8kqk-iMGmeY-68Faf5-eengiF-az2wZc-8Donui-9akM8w-74nnx5-jPpTh1-fFebAh-8XLKZG-e9EhRU-gkU7zR-dUADUN-e9yGbZ-5e2RWq-9Ptwxj-j7dgJL-6JKm12-gLxM8U-jPmA26-51q2xd-e9Ww3N-MsryW-jPnDWX-jPpFEy-jPofRB-jPmwsT-6dYNSN--4u2Bcf-57U7uU-4yZc97-8XTH3i-515Cqe-6DdCdR-bo1UfR-e9EAxW-bxvKWj-fFech9-fFecdo-fFec9q-jPnARF-jPnXCD
  • https://www.flickr.com/photos/misskei/137179036/in/photolist-d85xN-hG1AEY-hrjXNq-hrjpxn-kjPzyT-b3bWRD-jGMx7D-bqC4Pm-bkNDU1-8yFUHC-bC1bxV-dc5NrD-65hM1r-6eBvP7-fWWBPz-DYEay---bkunpJ-e1Q643-bhFLWt-5JKcae-bg6vWP-9Kn6cm-6qG4DN-2kvM1-8GvL7k-65i5Ri-3R8X1-9AST5W-65kdtK-5uCN6w-bEGPUr-7gMpw9-9daPrW-4qGRGq-9hcxNP-9hY1oT-9hfGaf-cpNZRj-8vBVWt-6btSko-8uLEUd-fa7GMB-dX5Ggo-cyPj79-D8p9A-g2c1Zw-46ZjMK-CTjfq
  • http://fcx.com/ir/2014present/Deutsche%20Bank_JUN14.pdf
  • http://fcx.com/ir/2014present/Deutsche%20Bank_JUN14.pdf
  • http://fcx.com/ir/2014present/Deutsche%20Bank_JUN14.pdf
  • https://www.flickr.com/photos/misskei/137179036/in/photolist-d85xN-hG1AEY-hrjXNq-hrjpxn-kjPzyT-b3bWRD-jGMx7D-bqC4Pm-bkNDU1-8yFUHC-bC1bxV-dc5NrD-65hM1r-6eBvP7-fWWBPz-DYEay---bkunpJ-e1Q643-bhFLWt-5JKcae-bg6vWP-9Kn6cm-6qG4DN-2kvM1-8GvL7k-65i5Ri-3R8X1-9AST5W-65kdtK-5uCN6w-bEGPUr-7gMpw9-9daPrW-4qGRGq-9hcxNP-9hY1oT-9hfGaf-cpNZRj-8vBVWt-6btSko-8uLEUd-fa7GMB-dX5Ggo-cyPj79-D8p9A-g2c1Zw-46ZjMK-CTjfq
  • http://www.dow.com/company/aboutdow/history/timeline.htm
  • http://fcx.com/ir/dividends.htm
  • http://fcx.com/ir/2014present/Deutsche%20Bank_JUN14.pdf
  • http://www.dow.com/investors/events/Events.aspx?file=48
  • http://fcx.com/ir/2014present/Deutsche%20Bank_JUN14.pdf
  • https://www.flickr.com/photos/justaprairieboy/4830720234/in/photolist-73zKhj-8mSGPU-9WrrJA-kqF6tA-js83wL-c5tNpG-jeeVVc-c5qnDs-gsdgnN-fVmJLA-jefC7K-aCmJJ8-aCpmQs-aCmDHT-9po4rS-aCpqXU-aCmHye-dNY7RX-ffyCkk-dMydkn
  • http://www.potashcorp.com/about/history/ and http://www.potashcorp.com/about/overview/
  • http://www.potashcorp.com/media/POT_2014_BMOFarmtoMarket.pdf
  • http://www.potashcorp.com/media/POT_2014_BMOFarmtoMarket.pdf
  • http://fcx.com/ir/2014present/Deutsche%20Bank_JUN14.pdf
  • https://www.flickr.com/photos/76657755@N04/6881485010/in/photolist-bu6pKh-7HedAv-kyBTGB-f54gtt-9qRF8r-6QFDYU-4BfaUm-7987Vs-ght8m7-bH1eiH-bH1gac-62QVb5-62LD8Z-6hSkjK-9htwN2-5KQyH9-chEaLb-4sUYDb-aB7uKh-9PSLHY-fKKcRD-bxDiow-dSXXyh-9VADkr-9gYtwj-6c6Q6r-cEHZc1-bi1bhM-9qREU2-9KU6T1-5WEQZB-8ip71R-4e5gDL-8ip6YF-8ddtDt-8PWifN-bZwdFC-9kNSHL-9kMUQb-4e1gT8-oh2EL-fEHuLF-5yL49b-5WsjQv-a32GWs-chEfau-9qUEUf-9qUDuJ-a32J27-bZwG3C

Transcript

  • 1. 3 Great Income Stock Ideas for Your IRA Photo credit: Flickr/TaxCredits.net
  • 2. There are two important characteristics to finding great income stocks for your IRA. First, start with a company that already offers a compelling dividend today. Photo credit: Flickr/TaxCredits.net
  • 3. Personally, I like to start with a dividend yield that’s over 3%. It suggests the company is serious about its dividend. Photo credit: Flickr/peddhapati
  • 4. Second, I want to see visible growth prospects that will see that dividend grow for years to come. Photo credit: Flickr/Aaron Patterson
  • 5. I’m looking for growth capital spending plans currently underway to capture a market that has long-term potential beyond current plans. Photo credit: Flickr/www.stockmonkeys.com
  • 6. These three companies really stand out as great income stocks to own in an IRA.
  • 7. Freeport-McMoRan Copper & Gold Background:  Founded in 1912 in Freeport Texas near a new sulfur mine.  It is now the world’s largest publicly traded copper producer.  Additional resource diversification into gold, silver, molybdenum, cobalt, oil and natural gas. Photo credit: Flickr/benketaro
  • 8. Freeport-McMoRan Copper & Gold Background:  Founded in 1912 in Freeport, Texas near a new sulfur mine.  It is now the world’s largest publicly traded copper producer.  Additional resource diversification into gold, silver, molybdenum, cobalt, oil and natural gas.
  • 9. Freeport-McMoRan Copper & Gold Dividend History:  Freeport-McMoRan has a long history of paying a regular cash dividend as well as an occasional special supplemental dividend.  Current dividend yield is 3.5%.  While its dividend rate has been stagnate for more than two years, it should grow over time.
  • 10. Freeport-McMoRan Copper & Gold Visible organic growth:  Freeport-McMoRan expects to grow its annual copper production by more than 5 billion pounds.  That’s a 37% increase from 2012 to 2015.  Gulf of Mexico oil and gas production is expected to more than double over the next five years.
  • 11. Freeport-McMoRan Copper & Gold Visible organic growth:  Freeport-McMoRan expects to grow its annual copper production by more than 5 billion pounds.  That’s a 37% increase from 2012 to 2015.  Gulf of Mexico production expected to more than double over the next five years. Source: Freeport-McMoRan Inventor Presentation
  • 12. Freeport-McMoRan Copper & Gold Long-term growth trends:  China’s fundamental demand for copper remains strong.  Production from existing copper mines will create a shortfall that will need to be made up by expansions and new projects.  Oil and gas demand growth expected to remain robust due to emerging markets.
  • 13. Dow Chemical Photo credit: Dow Chemaical
  • 14. Dow Chemical Background:  Dow was incorporated in 1897 to manufacture and sell bleach.  Today Dow operates in six segments: Electronic and Functional Materials, Coatings and Infrastructure Solutions, Agricultural Sciences, Performance Materials, Performance Plastics and Feedstocks and Energy.
  • 15. Dow Chemical Dividend History:  Dow has a long history of paying a regular cash dividend.  Current dividend yield is 2.84%.  While its dividend yield is lower, it’s still a respectable rate that should grow over time.
  • 16. Dow Chemical Visible organic growth:  Dow is on path to grow its EBITDA to more than $10 billion per year thanks to near-term controllable growth catalysts.  Gulf Coast petrochemical investments will take advantage of cheaper American natural gas as a feedstock.
  • 17. Dow Chemical Visible organic growth:  Dow is on path to grow its EBITDA to more than $10 billion per year thanks to near-term controllable growth catalysts.  Gulf Coast petrochemical investments will take advantage of America’s nature gas advantage. Source: Dow Chemical Inventor Presentation
  • 18. Dow Chemical Long-term growth trends:  Global food demand will increase by 70% from 2000 to 2050, which is a massive market for Dow AgroScience.  North American energy boom is providing cheap feedstocks for Dow’s petrochemical business.
  • 19. PotashCorp Photo credit: Flickr/Just a Prairie Boy
  • 20. PotashCorp Background:  Potash Corporation of Saskatchewan, an entity owned by the Government of Saskatchewan, went public in 1989.  Today PotashCorp is the world’s largest fertilizer company by capacity.  It produces potash, nitrogen and phosphate.
  • 21. PotashCorp Dividend History:  PotashCorp has been paying regular dividends since 1990.  However, its dividend has really surged over the past four years as it’s up 950%.  Current dividend yield is 3.69%.
  • 22. PotashCorp Visible organic growth:  PotashCorp is 93% complete with its CDN $8.3 billion potash expansion program.  Expansion has PotashCorp well positioned to supply near-term market growth with the flexibility to significantly grow future sales volumes.
  • 23. PotashCorp Visible organic growth:  PotashCorp is 93% complete with its CDN $8.3 billion potash expansion program.  Expansion has PotashCopr well positioned to supply near-term market growth with the flexibility to significantly grow future sales volumes. Source: PotashCorp Inventor Presentation
  • 24. PotashCorp Long-term growth trends:  Less arable land, population growth and an expanding middle class will necessitate increased food production.  Overall, global food demand will increase by 70% from 2000 to 2050, which is a massive market for fertilizer producers.
  • 25. Investor takeaway Dow, Freeport-McMoRan and PotashCorp all have a compelling current dividend, visible near-term growth prospects and clear long-term catalysts. That makes each a great income stock for an IRA. Photo credit: Flickr/TaxCredits.net
  • 26. Our special free report on top dividend stocks.