the secret to securing incredible retirement income

The Secret to Securing Incredible Retirement Income

Photo credit: Flickr/Aaron Patterson

You have one incredible edge on Wall Street

.

You can hold a stock for years never feeling the need to sell because it’s not the stock everyone

else is buying these days.

In buying to hold you can secure market beating

long-term gains…

…as well as save money on taxes and fees.

To top it all off you can also secure an incredible

income source for retirement.

To top it all off you can also secure an incredible

income source for retirement.

Photo credit: Flickr/khrawlings

My story:

From 2007 to 2011, I made several small investments in the energy sector. I bought units of

pipeline and processing company Enterprise Products Partners and shares of energy giant

ConocoPhillips.

My story:

The goal was to add income producing investments to my portfolio to provide income

when I retire in a few decades.

The result:

Exceptional income growth:

Company Average Purchase Price

Annualized Dividend at

First Purchase

Historical Yield on

Initial Investment

Current Annualized

Dividend

Yield on Initial

InvestmentIncome Growth

Enterprise Products Partners 27.18$ 1.96$ 7.21% 2.84$ 10.45% 44.90%ConocoPhillips* 43.97$ 2.00$ 4.55% 2.76$ 6.28% 38.00%Phillps 66* 21.68$ 0.80$ 3.69% 2.00$ 9.23% 150.00%*Note: Phillips 66 was spun off from ConocoPhillips and the numbers have been adjusted to reflect that event.

This income growth isn’t likely to end anytime soon

because each company has a visible pipeline of growth opportunities.

Enterprise Products PartnersWhy to expect continued income growth:• Nearly 80% of its income is diversified and secured by fee-

based contracts.• Retains about a third of its distributable cash flow to

reinvest in growth projects. • $6.8 billion of major capital growth projects under

construction. • America’s energy boom will continue to fuel growth

beyond current project pipeline.• Has one of the highest credit ratings among MLPs.

Enterprise Products PartnersWhy to expect continued income growth:• Nearly 80% of its income is diversified and secured by fee-

based contracts.• Retains about a third of its distributable cash flow to

reinvest in growth projects. • $6.8 billion of major capital growth projects under

construction. • America’s energy boom will continue to fuel growth

beyond current project pipeline.• Has one of the highest credit ratings among MLPs.

ConocoPhillipsWhy to expect continued income growth:• Oil-rich reserve base spread around the world. • Near term focus to grow production and

margins by 3-5% annually through 2017. • Major growth opportunities in the Deepwater

Gulf of Mexico, North American unconventionals, and offshore Africa.

• Strong balance sheet with A rated debt.

ConocoPhillipsWhy to expect continued income growth:• Oil rich reserves base spread around the world. • Near term focus to grow production and

margins by 3-5% annually through 2017. • Major growth opportunities in the Deepwater

Gulf of Mexico, North American unconventionals, and offshore Africa.

• Strong balance sheet with A rated debt.

Phillips 66Why to expect continued income growth:• Focused on growing its higher margin chemicals

and midstream businesses. • $12 billion in growth capital projects through

2016. • Well positioned to profit from the North American

energy boom.• Committed to maintaining a conservative debt-to-

capital ratio of 20-30%.

Phillips 66Why to expect continued income growth:• Focused on growing its higher margin chemicals

and midstream businesses. • $12 billion in growth capital projects through

2016. • Well positioned to profit from the North American

energy boom.• Committed to maintaining a conservative debt-to-

capital ratio of 20-30%.

Investor takeawayThree keys to success:

1. Each company has a visible near-term growth plan that will keep the dividend growing.

2. Further, all three companies are well positioned to take advantage of the world’s never ending need for energy.

3. Finally, each has maintained a strong balance sheet to fund growth as well as to weather any storms that may arise.

Investor takeawayThe secret to securing incredible retirement income is simple.

Invest in solid dividend paying stocks with a history of raising their payout.

Look for companies with strong near and long-term growth prospects and low debt levels.

Buy to hold and the income produced will go a long way to securing your retirement.

Our special report on securing your retirement.