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hi KitKat...

Vitaliy Katsenelson wrote a little piece recently... it's light on specifics, but it does give some clues about where he looked for yield for a client. Here's a quote...

"A few months ago, a client asked if we could come up with a defensive stock portfolio that would yield more than 7%. In an environment in which the Federal Reserve has let loose a jihad on interest rates and carpet bombed anything even remotely resembling yield through its purchase of riskless (or near-riskless) instruments of all durations, I thought it was not doable.

"To my surprise, we have been able to identify a diversified portfolio of 20 stocks that meet the 7% hurdle. Half of the portfolio is in European (mostly multinational) stocks, a quarter is in Master Limited Partnerships, and the rest is in plain-vanilla US equities."

He went on to talk a little about Vodafone, which is one of the equities he actually purchased. The article was called "Dividends Get No Respect," and google should turn it up if you want more.

MLPs are definitely of interest to me, but I've always been scared off by the tax implications. The thought of having to file state tax returns in every state a pipeline runs through is horrifying, and I can't seem to figure out what the threshold for income is on a per state basis that would trigger that so I can factor that into position sizes if necessary. Anybody have any advice there?

Also, GBDs are pretty interesting right now and have monster yields and could actually benefit with rising interest rates, but would likely get crushed in a recession.

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