TAL International: Another Cheap And Unusual High Yield Pick
By Bret Jensen:Income investors are challenged by a low yield environment that is likely to last for the foreseeable future. I believe one has to be creative in this type of environment to develop a well-diversified income portfolio. In previous articles I have profiled unusual yield picks such as an aircraft leasing company (FLY), a commodity producer with a 5% yield (CLF) and a business development company with a 7% distribution (NGPC). Today's high yield idea concerns a container leasing company, TAL International (TAL). 8 reasons TAL is a nice addition to an income portfolio at $33 a share:
- TAL yields 6.7% and the company has doubled its distribution rate over the last two years.
- Insiders made their first purchases of the year in late May.
- Consensus earnings estimates for both FY2012 and FY2013 have risen nicely over the past three months.
- The company grew earnings at a 13% annual clip over