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13 High-Yielding Commodities for 2013


Archer Daniels Midland, Deere & Company, and Exxon Mobil make the list.

7. UBS E-TRACS 2x Long Alerian MLP Infrastructure ETN (NYSEARCA:MLPL)

As investors have sought income, pipeline master limited partnerships (MLPs) have become ultra-popular, as they typically offer juicy tax deferred yields, often in the 5-7% range. These firms allow investors to participate in the growth of domestic energy production without the price fluctuations of crude oil or natural gas futures.

By using a little leverage, MLPL allows investors to juice their returns even more. The fund, which tracks 25 MLPs, pays a variable quarterly coupon linked to the leveraged cash distributions associated with the underlying MLP constituents. That results in a monster 10.71% distribution yield. Add in the tax efficiency of the ETN structure and you have a perfect way to super-charge your income.

8. Nucor Corporation (NYSE:NUE)

The ailing global economy hasn't been so kind to iron and steelmaker Nucor; however, its mini-mill focus and 200 different facilities have helped it become one of the nation's largest steel producers. Producing sheet steel, bar steel, steel fasteners, wire and wire mesh, and ferrous and non-ferrous metal, Nucor continues to expand and become the go-to manufacturer for the "back-bone" of modern society. That dominance continues to punch great cash flows and dividends for investors.

Nucor currently pays an industry leading 3.52% dividend and has raised that payment for over 25 years. All in all, Nucor remains one of the best plays in the steel industry.

9. Plum Creek Timber (NYSE:PCL)

Most investors choose to place their commodity bets on energy, agriculture and metals. However, timber is equally as exciting and has historically been a great long-term investment. According to data provided by Forisk Timber Group, the timber sector has outperformed many other asset classes in annualized returns over the last 10 years. In 2011, a basket of timber companies returned 5.69%. Add in the sector's inflation protection and you have a recipe for portfolio success.

The best way to play the commodity could be the nation's largest land holder, Plum Creek Timber. Structured as a real estate investment trust (REIT), the company owns and manages 6.4 million acres worth of timberlands in the United States and produces plywood, medium density fiberboard and related by-products, such as wood chips. The REIT structure also pays a strong 3.93% dividend.
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