We’re sharing a new high-income-generating options trade. Last’s week’s volatility created a significant dispersion in sector performance, and the name behind this trade was one of the more extreme movers. If shares of this big-dividend REIT fall further, we’d be happy to buy at an even lower price. And we get to keep the attractive premium income this trade generates, no matter what.
This week’s Blue Harbinger Weekly highlights the performance of various market sectors and styles, including the sharp sell-off in REITs and healthcare. We also share the weekly performance of the individual holdings within our Income Equity and Disciplined Growth strategies, including a brief review of a couple big movers. Finally, we share our opinion on the attractiveness of big dividend REIT Medical Properties Trust (5.8% yield), which unexpectedly sold-off more than 8% just last week.
This 8.3% yield fixed income closed-end fund (“CEF”) is currently trading at a relatively attractive price, and it is worth considering if you’d like to own some “non-stock-market” exposure within your investment portfolio; specifically, it can help diversify away risks as well as keep your monthly income high.
Here is a look at the market’s continuing strong performance this year (the S&P 500 is up 16.6%). REITS are one sector that’s been particularly strong (XLRE is up 19.1%) as the Fed’s new found dovish low interest rate posture helps REITs which generally rely on borrowing to grow. On the other hand, healthcare is one sector that has lagged (XLV is up only 4.2%) as this diverse sector faces varying specific pressures. Sabra Healthcare (SBRA) is a big dividend REIT that faces its own company-specific pressures as well as the headwinds of being a healthcare related company and the tailwinds of being a REIT. This week’s Blue Harbinger Weekly reviews the market’s performance, the performance of our portfolio holdings, and briefly reviews a few specific names, one of which is our opinion on Sabra Healthcare’s tempting 9.2% dividend yield.
If you are looking for an attractive dividend yield and the potential for healthy price gains, then this industrial automation company is worth considering. In particular, the current valuation is attractive (we expect multiple expansion and earnings growth), the company has significant competitive advantages, and it generates tons of cash to support its growing dividend payments, attractive share repurchases and important capex.
All Blue Harbinger strategies delivered healthy gains in March, thereby extending their long-term outperformance. The strategies are positioned prudently to achieve their long-term goals, ranging from attractive income to powerful long-term growth. This report reviews performance (including specific holdings) and where we’re seeing the best opportunities going forward. Most importantly, keep perspective. Foolish investors panicked and sold out of fear in Q4 thereby missing out on Q1’s fantastic returns. Don’t get greedy and make the opposite mistake now. Stay disciplined.
General Dynamics is increasingly attractive. Both revenues and earnings per share continue on an upward trajectory, yet the share price is down, thereby making this dividend champion look like a steal from a valuation perspective. This article reviews the business, the valuation, and the outlook, as well as an explanation for the discounted share price (including the “social irresponsibility” factor, among others) and concludes with our opinion about investing in this blue chip 2.4% yield global aerospace and defense company which has increased its dividend for 27 consecutive years running.
We write a lot about income investments, however we also like to invest in powerful growth stocks, as well, because they add important diversification to an investment portfolio, and they can help keep your nest egg growing. This article focuses on one of the fastest growing companies in the US in terms of this year and next year’s sales growth, at scale. We provide an overview of the company’s attractive qualities, as well as a review of the common pitfalls to watch out for when investing for powerful long-term growth and capital appreciation.
This is a guest article from Yield Hunting. The article highlights some top muni closed-end-funds (“CEFs”). If you don’t know, you invest in muni CEFs to generate steady streams of tax-free income and compound it year after year. The non-quantitative benefit of muni CEFs are that natural downside hedge they can offer, especially on the high quality funds (non-high yield).
From time to time we like to share income-generating options trade ideas. Today, Boeing presents an interesting opportunity in light of heightened volatility and fear related to its second tragic 737 MAX plane crash in the last 5 months. Even if you don’t participate in this particular trade, it may help you generate future trading ideas of your own. Without further ado, here are the details…
If you’re an income-focused investor, you might be interested to know intermodal shipping container company, Triton International, just issued some very attractive 8.5% yield preferred shares this week. And as many of our readers know, we’ve written about the common shares of Triton, and we’ve also had success selling income-generating put optionson the common shares. But if you’re looking for high steady income (and less volatility) than the 6.5% yield of the common shares, consider this before you jump headfirst into these compelling new 8.5% yield preferreds.
If you are an income-focused contrarian investor, closed-end funds (“CEFs”) can be a corner of the market ripe with interesting opportunities. This article focuses on an attractive high-income CEF in the healthcare sector—a sector with plenty of long-term growth opportunities, but currently somewhat out of favor considering it has underperformed other sectors so far this year.
Simon Property Group (SPG) offers an attractive 4.7% yield and a compelling valuation. However, it continues to face pressure from market fearmongers and negative sector narratives. This article reviews the cloud of negativity surrounding Simon, and then considers the health of the business, valuation, risks, dividend safety, and concludes with our opinion about why Simon may be worth considering if you are a long-term income-focused investor
Navios Maritime Partners (NMM) generated enough operating cash flow to cover its distribution more than four times over, over the last quarter. And with a DCF yield of 36%, and shares trading at 1/3 estimated NAV (shares 97¢, NAV $2.91), is there any reason to believe this isn’t a prince of an investment? But of course there is more to this story… What follows is a guest article by Darren McCammon of Cash Flow Kingdom.
All Blue Harbinger strategies delivered healthy gains in February, thereby continuing their long-term track records of outperformance. The strategies have been positioned correctly for the market rebound, and they are positioned correctly to achieve their long-term goals, ranging from attractive high income to powerful long-term growth. This report reviews performance (including specific holdings) and where we’re seeing the best opportunities going forward. Most importantly, as always, be opportunistic, but for goodness sake don’t lose sight of your long-term goals.
If you like attractive high yield investments, your search can take you to all corners of the market. This week’s Blue Harbinger Weekly compares the post dividend cut 4.6% yield of Kraft Heinz to the 8.8% dividend yield of PIMCO’s popular closed-end fund, PCI.