Brookfield Property Partners offers a big 5.2% dividend yield, and the company may be calling a bottom in the retail REIT market via its bid to acquire GGP. However, the real winner may be Brookfield’s parent entity Brookfield Asset Management. This article provides an outlook for retail REITs, a review of the twisted conflicts of interest in this deal, and a few ideas on how income-focused investors may want to play this deal and the retail REIT space in general.
Members-Only Investment Ideas
This "Members Mailbag" report includes a brief update on big-dividend BDC Triangle Capital (TCAP) following an inquiry from Blue Harbinger member Bob S.; Bob’s full inquiry is included below, but he’s basically asking about the “strategic alternatives” discussed by management during the quarterly call, and he also notes that TCAP’s “former CEO really screwed up.” This write-up includes our opinion on the future of TCAP.
Sticking with our market cycle / booming economy theme, this week's investment idea covers an attractive REIT with an above average dividend yield that continues to have legs. And while we believe this opportunity has more upside, it'll eventually slow when the market cycle slows. So to those of you who choose to ride this one higher--keep an eye on it because when the market cycle does eventually turn...
Realty Income (O) pays a big monthly dividend (+4.7%), but its price is down, and many investors are not happy. The company has a strong track record of success since it was first listed on the NYSE in 1994, but what has Realty Income done lately? Considering the horrible 1-year performance for the Real Estate sector, we intend for this to be the first in a series of REIT articles in the coming weeks. This article reviews Realty Income’s financial position, its current valuation, and our outlook for its future performance.
If you are looking for yield, this article details a handful of compelling opportunities. Some of these ideas are less well-know than the big-dividend stocks you may typically hear about, but we believe the ideas in this article are attractive and worth considering.
Closed-end funds (CEFs) aren’t for everyone, but if you like high income, discounted prices, special dividends, and attractive strategies, we’ve highlighted four compelling opportunities in this article. We currently own all four of them.
A big dividend, wide moat, and compelling valuation. That's how we'd describe the stock we just purchased. We funded this purchase with the proceeds from our recent highly profitable sale of Caterpillar (we sold our CAT shares last Friday for a +110% gain after holding them for only 19-months). This article shares our thesis for why we just invested in this new highly-attractive contrarian opportunity.
The Blue Harbinger Weekly:
A members-only weekly report on Blue Harbinger's investments and the market.
This week we are sharing an attractive high-yield contrarian opportunity. Investing at a time when negativity and fear are high can be challenging, but it can also be very rewarding.
Low interest rates, improved bank reserve requirements, and quantitative easing have done such a great job restoring faith in the markets following the financial crisis, that the S&P 500 continues to reach new highs and fear (as measured by the VIX) has practically evaporated altogether. But valuations are starting to get stretched. This article addresses the question: Are we finally due for a market correction?
If your primary objective as an investor is to generate attractive total returns from which you can source steady income payments, then you may want to consider the closed-end fund (“CEF”) described in this article. It offers big monthly income distributions, a discounted price, compelling real estate market conditions, no risky leverage, and a long-term track record of success. However investors should be aware that a portion of the income distributions are sourced from capital gains (in a tax-efficient manner), so don’t expect the value of this investment to climb dramatically over the long-term, unless you’re reinvesting those big juicy monthly distribution checks.
This article reviews a big-dividend market leader that has been able to improve its risk versus reward profile and capture market share while its peers have been struggling. The industry overall has been struggling, but things are continuing to improve, especially for the very interesting company we review in detail in this article. We also offer our views on how to "play" this big-dividend opportunity.
As we wrote here, we sold our shares of Caterpillar on Friday for +110% gain after owning them for 19-months. We expect to purchase new shares with the proceeds within the next several trading days. This article highlights four very attractive investment opportunities that we are considering for purchase.
If you missed it, we recently wrote a public article titled "7 Deadly Sins of Long-Term Investing." Number 5 on that list was the terrible pitfall of "Yield Chasing" (buying stocks simply because they offer a high yield instead looking under the hood at the fundamentals). This article reviews a specific very-high-yield company that is increasingly tempting to some investors. However, based on our fundamental review, we strongly recommend you stay away from this value trap!