Invest Without the Risk

Keith Kohl

Written By Keith Kohl

Posted May 6, 2012

I don’t take unnecessary risks in the market.

Those who do might take a lesson from my weekly poker night.

With a revolving door of friends and colleagues every Tuesday evening, there’s never a dull game.

Some weeks I feel lucky; other nights, I’m not as fortunate.

Every so often, one of my colleagues will pull up a seat and join the table…

But when the cards are dealt, I know he isn’t gambling.

When I finally asked him how he does it, he told me, “You don’t go all-in with a pair of twos.”

You see, my buddy doesn’t walk away with my money each week because he’s luckier than I am; he simply hedges his risk with each hand he plays, whether it’s by working out the odds or watching me scratch my ear whenever I’m holding a flush (I should probably stop doing that).

And that’s exactly how we avoid risk today in a volatile market.

Investments should never be based on hunches, second-guesses, or emotions…

They should be cold, calculated moves that limit risk while providing a strong return for the investor’s portfolio at the same time.

Dividends with a Kick

Like my poker buddy, my veteran readers know how to successfully weather a turbulent market.

Their strategy isn’t some trading secret shared among board room executives behind closed doors…

In fact, last year I showed you four MLPs in the energy sector with high-yielding annual dividends.

Today they’re still among the most secure, stable income plays for the last few years:

Company

Symbol

Market Value

Annual Yield

Enbridge Energy Partners

NYSE: EEP

$8.4 billion

7.12%

Pioneer Southwest Energy Partners

NYSE: PSE

$972.8 million

7.74%

Pembina Pipeline Corp.

NYSE: PBA

$8.7 billion

5.42%

Kinder Morgan Energy Partners

NYSE: KMP

$27.7 billion

5.85%

Just how stable are we talking here?

Anyone with a dime in energy market four years ago should know how painful things can get. When oil prices collapsed to $33 per barrel in 2008, there wasn’t a single oil or gas stock that didn’t cause investors to wince…

Or was there?

Throughout it all, not one of these MLPs lowered their dividends.

In fact, all of them managed to increase payouts to investors year after year.

One of those companies above, Enbridge Energy Partners, has raised its annual dividend sixteen times in the last twenty years — and not once has it been lowered.

Still think it’s gambling?

Try finding a better bet than that in Las Vegas…

Enjoy your weekend,

Keith Kohl
Editor, Energy and Capital

India Solar Investment: Is Solar the Cheaper Option in India?
Natural gas is king in the United States, but solar is booming in India.

Methane Hydrates: More Energy than All Other Fossil Fuels Combined
Though methane clathrate, may seem like something out of an episode of The X-Files, the truth is flaming ice is real, abundant, and believed to have played a part in the massive climate shifts throughout earth’s long history.

Indian Gold Buying Season: Indian Winter, Money Printing, and a Nat Gas Revival
Money has to go somewhere, and there is more of it every day. It will go into stocks and hard assets like gold.

Oil Alternatives: Ethanol, Algae, and Others
Call me jaded, but I just don’t see a huge place in the market for alternative liquid fuels right now.

The Best and Worst in Natural Gas: Natural Gas Investing with a Twist
The natural gas industry: what you need to know.

Deeper Down the Oil Well We Go: Welcome to Your Unconventional Future
The world’s future oil supply will be from unconventional sources… find out how investors can prepare for the shift.

Simple Truths: “Individuality, liberty and property: This is man.”
I’m often asked by people to explain what it is I do exactly…

Birth of a Shale Gas Boom: Transitional Investments
Keith Kohl takes look back at how the U.S. shale boom started, the direction it’s headed… and what this could mean for your portfolio.

Dow Hits New One-Year High: Buy the Fear
It’s at times like these, when your gut tells you to run, that you absolutely must stand firm… and get ready to buy.

Angel Publishing Investor Club Discord - Chat Now

Keith Kohl Premium

Introductory

Advanced

Hydrogen Fuel Cells: The Downfall of Tesla?

Lithium has been the front-runner in the battery technology market for years, but that is all coming to an end. Elon Musk is against them, but Jeff Bezos is investing heavily in them. Hydrogen Fuel Cells will turn the battery market upside down and we've discovered a tiny company that is going to make it happen...

Sign up to receive your free report. After signing up, you'll begin receiving the Energy and Capital e-letter daily.