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8% Private Equity Dividends

Ian Wyatt

I rarely recommend stocks that deliver really juicy dividends.

The reason is simple: most stocks with big dividend yields are downright risky.

While earning a healthy income from dividend stocks is a key component of my strategy, protecting wealth is even more important. 

I’ve cautioned my High Yield Wealth subscribers and Income & Prosperity readers against “chasing yield” – or buying risky dividend stocks simply because they offer high yields.

Dividend stocks have been performing remarkably well over the past year. They’re rising in price, since more investors are buying dividend stocks to replace the paltry 2% yields offered by Treasuries. And as these share prices rise, their yields are falling.

For this reason, it’s become difficult to find quality stocks that offer a high yield.

That’s why I was so surprised when my colleague – Tyler Laundon – showed me his updated research on a truly unique dividend stock that’s currently yielding 8.3%.

Tyler is our growth stock expert and leads our 100% Letter – an investment newsletter service focused on finding companies with the potential to double in price over the next 12 – 18 months.

Now, finding a quality stock with an 8% yield is quite a challenge. Finding one that could also double in price within the next couple of years is remarkable.

But that’s what Tyler does. He finds remarkable, overlooked opportunities with big profit potential. And since joining Wyatt Investment Research four years ago, his track record is among the best of our analysts.

His latest recommendation is an investment firm that buys out privately held companies. In many ways, it’s very similar to a private equity firm.

The company that he recommends today buys up profitable small and mid-sized businesses that are attractively priced. This often means buying companies in overlooked and boring sectors. One of its portfolio companies makes gun safes.  Another makes components for bikes, ATVs, and snowmobiles.

But the nice thing about these boring businesses is that they’re cash cows.  The firm only buys out private companies that are generating positive cash flows of at least $5 million, and as much as $40 million, per year. 

So what does this private equity firm do with all that cash?

Some of it gets invested in new portfolio companies to help grow the overall value of the business (and the share price).

And a large portion gets paid to shareholders in the form of a quarterly dividend.  Last year, the firm paid out about $70 million in dividends. And much of that was paid to individual investors.

Now, you’ve probably heard of private equity firms. The last presidential election highlighted the vast wealth that Mitt Romney earned from his company, Bain Capital.

You also likely know that private equity firms are exclusive private partnerships. Most are only open to well-connected, high net worth investors. And the good ones require at least a $1 million investment.

It’s incredibly rare to find a publicly traded private equity firm that has its doors open to the average investor.  That’s because being a public company requires strict oversight by the SEC.

For corporate executives, this can be a hassle.  But for investors, this is a godsend. The result is much more transparency through regular public filings.  After all, who wants to mistakenly invest with another Bernie Madoff?

Tyler will be releasing his completely updated investment report to 100% Letter subscribers tomorrow. Out of respect for his paying subscribers, Tyler has asked that I not share all the details in this letter.

However, you can be among the first to receive this report by taking one simple step today. All you have to do is accept my invitation to try the 100% Letter absolutely risk-free for 30 days by clicking here. This will add you to our list of members, and assure that you get the complete report and analysis on this truly unique income opportunity.

After all, finding a high quality stock with an 8.3% yield is a challenge. But discovering one that could also double your return never happens. You should jump on this opportunity while it lasts.