Where to find yield? In order of appeal, (1) high-dividend stocks, (2) municipal bonds, (3) REITs, (4) telecom stocks, (5) convertibles, (6) electric utilities, (7) preferreds, (8) junk bonds, (9) MLPs and (10) treasuries.

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Cisco (CSC) – could be good for 20%.

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Magna (MGA) – controls 11.3% of US  auto-parts industry. 10.6 x ’14 EPS, debt free balance sheet, cash and a buy-back program. Scott Black says a valuation of 14x his firm’s estimate of $7.60 a share in ’14 puts the shares at $106 (they are about $83 today). Yield is 1.5% today.

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Interview with Robert Ewing of Putnam Investments

JPM – cheapest bank by most metrics. Single-digit forward-earnings multiple, and 1.5x book value. Maintaining or gaining share in 14 of 16 segments.

BAC – 1.2x tangible book value. Can generate 12-13% return on equity over the long term. Will benefit from rising interest rates.

Both companies should trade at 2x bv and in low double digit multiples.

Also likes RDSA.