Wachovia Bank: New Income Play

In addition to my long positions in Altria (MO) and Harvest Energy Trust (HTE), I'm looking at adding a high-yield financial to my portfolio. I've been conflicted between Wachovia, (WB) Citigroup (C) and Bank of America, (BAC) but I just can't turn down that dividend that is being offered by Wachovia. (Though, there are some short-term gains in Citigroup to be had if you think CEO Chuck Prince will be fired, but I deal with long-term outlooks in this blog.)

The stock has been beaten up a bit this year, but that's why I like it. (Banks in general have been taken to the cleaner, for that matter.) Getting a stock of a well-run, stable company like Wachovia at a discount doesn't come around often.

I think the stock will be pulling back to about $50-50.5 a share, so when it gets in that range, I'm going to pull the trigger. If you're looking for a safe income play with some room to run (after the pullback) I'd take a long position in Wachovia once it hits that $50-50.5 range.