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Merck completed its purchase of Schering-Plough for $41.1 billion in early November. The new company is organized into five divisions, including its manufacturing operations and Merck Research Laboratories. The others are the prescription drug business and two Schering-Plough businesses, animal health and a consumer health business with well-known brands such as Claritin allergy pills, Miralax laxative, Coppertone sun care items and the Dr. Scholl's footcare line. The transaction doubled the number of potential medicines Merck has in Phase III development, bringing the total to 18. Schering-Plough generates about 70% of its revenue outside of the United States, including more than $2 billion in annual revenue from emerging markets. In addition, with a more geographically diverse mix of business, the combined company is expected to generate more than 50% of its revenue outside the United States. Immediately upon completion of the transaction, Merck announced that it was offering an early redemption of the outstanding Schering Plough convertible shares that it assumed. Merck offered $86 cash and 4.73 shares of Merck common stock plus accrued interest of approximately $11 for each existing share of the convertible. We exercised the option for early redemption. The current yield on the convertible is less than six percent. Combining the companies will save about $3.5 billion a year after 2011. By next year, Merck expects the deal to boost profits slightly, and is forecasting profit growth in the high single digits through 2013. Merck pays an annual dividend of $1.52 per share, which is equivalent to a current yield of 4.2 percent. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The reader should not assume that investments in the securities identified and discussed were or will be profitable. Colgate-Palmolive
Colgate-Palmolive is a consumer products company whose products are marketed in over 200 countries throughout the world. The Company has two distinct business segments: Oral, Personal and Home Care, and Pet Nutrition. Oral, Personal and Home Care products include toothpaste, oral rinses, bar and liquid hand soaps, shampoos, deodorants and antiperspirants, shave products, laundry and dishwashing detergents, cleansers and cleaners, bleaches and other similar items. The principal customers for Pet Nutrition products are veterinarians and specialty pet retailers. Colgate-Palmolive reported that its third quarter profit rose 18 percent, helped by cost-cutting, higher sale prices and new products. The consumer products maker earned $590 million, or $1.12 per share, compared with $500 million, or 94 cents, a year ago. Revenue was essentially the same at $4.0 billion. The company boosted prices by approximately five percent in an effort to keep up with rising ingredient costs. People will continue to buy everyday household and personal hygiene products regardless of the state of the economy. Despite being a defensive company, Colgate has risen from $59 per share from our last review in March, keeping pace with the gains recorded by the broader market. Colgate pays an annual dividend of $1.76 per share, which equates to a two percent yield. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The reader should not assume that investments in the securities identified and discussed were or will be profitable. Rayonier
Rayonier is a leading international forest products company engaged primarily in activities associated with timberland management, including the sale of timber and timberlands, and in the production and sale of high value-added performance cellulose fibers. The company owns, leases, or manages 2.6 million acres of timber and land in the United States and New Zealand. The core operations are organized into three principal segments: Timber, Real Estate and Performance Fibers. Rayonier reported third quarter net income of $81.1 million or $1.01 per share compared to $28.9 million or 36 cents per share in same quarter last year. The results were aided by a one-time tax credit. The Company recently announced that its Board of Directors declared a third quarter cash dividend of 50 cents per common share. The annualized dividend of $2.00 per share equates to a current yield of approximately five percent. A portion of its dividends are treated as return of capital. The shares trade on the New York Stock Exchange. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The reader should not assume that investments in the securities identified and discussed were or will be profitable. FPL Preferred
Florida Power & Light Company (FPL) is the largest electric utility in Florida and one of the largest rate-regulated utilities in the United States. It produces electricity through natural gas, wind, nuclear, oil, hydro, and other resources. FPL serves 4.5 million customer accounts in Florida and is a leading employer in the state with nearly 11,000 employees. The company consistently outperforms national averages for service reliability while customer bills are well below the national average. A clean energy leader, FPL has one of the lowest emissions profiles and the No. 1 energy efficiency program among utilities nationwide. FPL reported adjusted third quarter earnings of $562 million, or $1.38 per share, compared with $506 million, or $1.25 per share, in the third quarter of 2008. Revenue fell to $4.5 billion, from $5.4 billion last year as the company continues to feel the effects of a slower economy. FPL affirmed its outlook for 2009 and 2010 and said it expects full-year adjusted earnings per share to range between $4.10 and $4.20 in 2009 and between $4.20 to $4.40 per share in 2010. We have purchased the preferred shares of FPL for the high dividend yield the shares offer. The preferred shares pay an annual dividend of $1.65 per share, which equates to a 6.5 percent current yield. The common shares yield 3.6 percent. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The reader should not assume that investments in the securities identified and discussed were or will be profitable. ATT Preferred

AT&T is a leading communications holding company and the largest phone company
in the U.S. Its subsidiaries and affiliates, AT&T operating companies, are the
providers of AT&T services in the United States and around the world. Among their
offerings are the world's most advanced business communications services and the
nation's leading wireless, high speed Internet access and voice services. In
domestic markets, AT&T is known for the directory publishing and advertising sales
leadership of its Yellow Pages, and the AT&T brand is licensed to innovators in such
fields as communications equipment.
In the third quarter, AT&T reported consolidated revenues of $30.9 billion. Reported
net income totaled $3.2 billion, or $0.54 per share, down approximately one percent
from the year-earlier quarter. These results were highlighted by strong wireless
growth and double-digit gains from its high-speed internet data services. AT&T is
the country’s second largest wireless company with almost 80 million customers.
We have purchased the preferred shares of AT&T for the high dividend yield the
shares offer. The preferred shares pay an annual dividend of $1.59 per share, which
equates to a 6.1 percent current yield.
The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The reader should not assume that investments in the securities identified and discussed were or will be profitable. Sunoco Logistics
Sunoco Logistics Partners is a publicly traded partnership that owns, operates and acquires a geographically diversified portfolio of complementary energy assets. Revenues are generated by charging tariffs for transporting refined products, crude oil and other hydrocarbons through its pipelines, and by charging fees for storing refined products, crude oil and other hydrocarbons, and for providing services at its terminals. The company moves products from the southwest to the Mid - Atlantic States. The business consists of three segments: the Eastern Pipeline System, Terminal Facilities and the Western Pipeline System. The Company operates in 19 states. Sunoco Logistics reported third quarter net income of $48.5 million compared with $50.3 million from the prior quarter last year. The decline in earnings was driven by an inventory hedge position. The company expects that the addition of two acquisitions during the quarter, the Excel crude oil pipeline in Oklahoma and the refined products terminal in Romulus, Michigan, will provide additional opportunities for future cash flow growth. In addition, Sunoco completed construction on a new pipeline from the Nederland terminal to Motiva's Port Arthur refinery, as well as new tanks at the Nederland terminal. Distributable cash flow for the third quarter continues to be strong and is an excellent indicator of the health of the company. Distributable cash flow, which represents the cash generated during the quarter which is available to pay distributions, increased $1.9 million to $54.4 million compared to the third quarter of 2008. The Partnership increased the distribution it pays to unit holders in November to $4.26 per unit, which represents the twenty-fifth distribution increase in the past twenty-six quarters. The new rate represents a 10.3 percent increase over the third quarter of 2008. The units currently yield seven percent. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The reader should not assume that investments in the securities identified and discussed were or will be profitable. Senior Housing Properties Trust
Senior Housing Properties Trust (SNH) is a real estate investment trust (REIT) that
invests in senior housing real estate, including apartment buildings for aged
residents, independent living properties, assisted living facilities and nursing homes.
The Company owns 288 properties located in 35 states and Washington D.C.
Senior Housing also owns four health and fitness centers.
Net income for the quarter ended September 30, 2009, was $15.6 million, or $0.13
per share, compared to net income of $29.1 million, or $0.25 per share, for the
quarter ended September 30, 2008. Per share earnings declined during the quarter
(when compared to 2008) due to the issuance of an additional 7 million shares of
stock. The proceeds from the issuance were used to acquire 10 additional medical
office buildings and one senior living property.
Funds from operations (FFO), the preferred measure of financial stability for REITs,
for the third quarter, were $49.4 million, or $0.41 per share. This compares to FFO
for the quarter ended September 30, 2008 of $47.0 million, or $0.41 per share.

Advancements in medical science are helping prolong our lives and this, we believe,
will increase the demand for independent and assisted living centers. The portfolio
of properties is geographically diversified throughout the United States with the
largest concentrations of properties located in Texas and Florida. The REIT pays a
current dividend of $1.44 annually or 7.2 percent current yield.
The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The reader should not assume that investments in the securities identified and discussed were or will be profitable. Duff & Phelps Utility and Corporate Bond Fund
The Duff & Phelps Utility & Corporate Bond Trust operates as a diversified and closed-end management investment company. The Fund's primary investment objective is high current income consistent with investing in securities of investment grade quality. The Fund seeks to achieve its objectives by investing substantially all of its assets in a diversified portfolio of utility income securities, corporate income securities, mortgage-backed securities, and asset-backed securities. Its investment portfolio includes investments in auto and truck, broadcasting and publishing, telephone, industrial, financial, and utilities sectors. Duff and Phelps Investment Management Co. serves as the investment adviser of the fund. At the end of 2008, the Fund had no direct investments in sub-prime loans or structured investment vehicles (SIVs) and did not use derivatives. These securities have been at the heart of the current financial crises. In addition, the portfolio had no exposure to financial institutions that focus exclusively on either the sub-prime industry or SIVs. By Fund mandate, all of the portfolio's holdings must be investment grade at time of purchase and, as of September 30, 2008, 97 percent of its portfolio was rated investment grade. The shares now pay $0.84 annually, which equates to a current yield of 6.9 percent. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The reader should not assume that investments in the securities identified and discussed were or will be profitable. Oil Service Trust
The Oil Services Trust is a collection of 16 companies that provide oil and gas services to the oil and gas industry. The Trust is a diversified basket of companies including drillers, seismic processors, pumping and cementing services, drill bits, and other related services and equipment. The Trust’s largest holdings include Transocean, Schlumberger, Halliburton, Baker Hughes, and Diamond Offshore Drilling. The security seeks to diversify investments in the oil service industry through a single, exchange traded fund (ETF) which represents an ownership of the underlying securities. The investment holds shares of common stock issued by specified companies that, when initially selected, were involved in the oil service industry. Except when a reconstitution event occurs, usually involving a merger or acquisition of a member of the index, the group of companies will not change. Shares of the ETF must be purchased in lots of 100 shares. The oil service index allows investors to own a diversified basket of stocks that are critical in meeting the global demand for energy exploration and production. The companies within the Oil Service Trust will benefit from these expenditures. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The reader should not assume that investments in the securities identified and discussed were or will be profitable. Dynamic Oil and Gas Holdings
The Dynamic Oil and Gas Trust is a collection of 31 companies that provide oil and gas services to the oil and gas industry. The Trust is a diversified basket of companies including drillers, seismic processors, pumping and cementing services, drill bits, and other related services and equipment. The Trust’s largest holdings include Baker Hughes, Halliburton, Cameron International, Diamond Offshore, National Oilwell Varco and Schlumberger. The security seeks to diversify investments in the oil service industry through a single, exchange traded fund (ETF) which represents an ownership of the underlying securities. The investment holds shares of common stock issued by specified companies that, when initially selected, were involved in the oil service industry. Except when a reconstitution event occurs, usually involving a merger or acquisition of a member of the index, the group of companies will not change. The oil service index allows investors to own a diversified basket of stocks that are critical in meeting the global demand for energy exploration and production. The companies within the Dynamic Oil and Gas Trust will benefit from these expenditures. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The reader should not assume that investments in the securities identified and discussed were or will be profitable.

Source: http://ffss.net/new/ffss/SR-1109.pdf?advisorid=332797