The aggressive large cap growth stocks that have been dominating the market this year (e.g. Facebook, Amazon, Netflix and Google/Alphabet) have recently been showing signs of capitulation. Rather than chasing after the most popular growth stocks, this article highlights 10 big safe income-generating investment opportunities that we believe are worth considering.
If you’re looking for a source of income in your portfolio, but all of the dividend growth stocks you like seem expensive, then you may want to consider selling put options. For those of you inclined, this article details five specific dividend-growth stocks (Bank of America, Gilead, IBM, Verizon and Goldman Sachs) that currently offer attractive put option premiums for income-focused investors.
If you are looking for big stable growing income, Enterprise Products Partners (EPD) is worth considering. This midstream energy services provider offers an attractive 6.1% distribution yield, and the shares are on sale, in our view. Considering the company’s large and strategic footprint, stable fee-based income, vertical integration, and growth (both in assets and distributions), we have added it to our list of 10 Attractive High-Yield Blue Chips Worth Considering.
If you are an income-focused investor, and you appreciate the price appreciation potential of a good contrarian opportunity, then you may want to consider some of the ideas highlighted in this article. Specifically, we provide an overview (and data) on “Dogs of the Dow,” “Dividend Aristocrats," retail REITs, healthcare REITs, MLPs, closed end funds, and options strategies, including ten of our favorite high-yield, contrarian, blue chip opportunities right now.
To the chagrin of yield-chasers, Frontier Communications (FTR) finally cut its big dividend. Specifically, the dividend was reduced by 62% last week (it now sits at 13.2%), and the stock is now down 64% this year. For your consideration, this article reviews the potential risks and rewards of investing in Frontier's high-yield bonds (+10% YTM), big-dividend stock, and leveraged options.
Last week was volatile and painful for many higher-yielding securities. For example, REITs, BDCs and MLPs (all known for high-yield) sold off significantly. We are in no way suggesting last week was a bottom, but we do believe some high-quality companies have sold off thereby making for more attractive entry points for long-term investors. This article highlights 100 high-yield equities that sold-off last week, and then reviews 10 specific opportunities that long-term income-focused investors may want to consider.
This article offers three explanations for the recent strong performance from high-yield BDCs, three reasons why we believe they’ll be challenged going forward, we consider three counterpoints to our thesis, and we highlight three specific BDCs (Prospect, Main Street and Fidus) that seem particularly overvalued right now. Finally, we offer 7 specific high-yield REIT ideas (ranked from best to worst) that offer a very attractive alternative for income-focused investors.
MedEquities Realty Trust (MRT) is an attractive healthcare REIT that offers a big 7.2% dividend yield. It is growing rapidly, and it trades at compelling price-to-book and price-to-forward-AFFO ratios. And apparently, hedge funds like it too. This article provides an overview of the bull case for MedEquities, highlights some of the significant risks, and then offers an idea about how to invest in this potentially big opportunity.
Understandably, many investors are not excited about traditional fixed income investments because interest rates are so low and rising (as rates go up, bond prices go down). Also understandably, many investors are not excited about high-yield stocks because they usually involve much more volatility and risk than bonds. However, healthcare REITs is one corner of the market that risk-averse income-focused investors may want to consider.
Physicians Realty Trust (DOC) is a medical office building REIT that offers an attractive 4.4% dividend yield. It has been growing rapidly, and management expects continued high growth going forward. Concerns regarding healthcare reform and rising interest rates have caused healthcare real estate to underperform, and that includes Physicians Realty Trust. However, DOC’s financials are healthy, its valuation is reasonable, it is differentiated from other healthcare REITs, it’s a contrarian opportunity, and we like its stable dividend yield.
New Senior is a small equity REIT, operating in the highly-fragmented, but very large and rapidly growing senior housing space. If New Senior can get through near-term challenges (which we believe it can) then there are plenty of healthy profits (and dividend payments) ahead.
If you are looking for a high yield business development company ("BDC") trading at an attractive price then Medley Capital Corporation (MCC) is worth considering.
If you are looking for low-risk low-reward dividend stocks, this article is NOT for you. However, if you’re looking for higher income yields, and risks that are tilted in your favor, then you may want to consider the ideas highlighted in this article.
There's been a big shift to growth stocks so far in 2017, as measured by the year-to-date performance of the large and small growth ETFs versus their value counterparts, as shown in the following table. This report highlights contrarian opportunities (including value versus growth) across sector, style, country, regional, asset class, and more ETFs.
Carl Icahn has a reputation as a corporate raider, and he is currently the chairman at big-dividend (10.2% yield) holding company, CVR Energy (CVI). CVI is engaged in petroleum refining and nitrogen fertilizer through its holdings in CVR Refining (CVRR) and CVR Partners (UAN), respectively. It is tempting to bet against UAN and bet in favor of CVRR considering President Trump's lack of enthusiasm for EPA regulations and his friendship with renewable energy short-seller Carl Icahn.
Rising interest rate expectations have pushed many income-hungry investors out of traditional fixed income categories and into high-dividend stocks, such as Target. Some income-focused investors believe they can add to Target's high yield by selling covered call options against their shares. We believe this is a risky and unattractive strategy. This article highlights three specific options trades that we consider far more attractive for generating high income and achieving exceptional long-term total returns.
Fear is high that a Frontier dividend cut is coming. It's price is down, it's yield (12.4%) seems unsustainably high, and short-interest is among the highest in the S&P 500. However, to a large extent, Frontier does have the ability to control its cash flows and sustain its dividend in the near- and mid-term. The real challenge is that Frontier’s business exists in an anemically eroding marketplace. This article highlights a smarter way for income-investors to invest in Frontier.
Considering interest rates are still artificially low, many income-hungry investors are attracted to high-dividend stocks. However, a high-dividend can be a sign of distress. Another possible sign of distress is a high level of short interest. This article highlights 40 high-dividend stocks with high short interest, and then handpicks two of the companies and explains why they actually present very attractive, high-income, contrarian opportunities worth considering.
Verizon is still willing to acquire Yahoo after the data breach revelations because Verizon still needs Yahoo. Specifically, without the cash flows that Yahoo will provide, Verizon will likely be forced to sell more assets to maintain its big dividend payments. Either way, Verizon’s share price has come down, the dividend is safe, and Verizon is a decent place to have your money, especially considering historically low market volatility likely won’t last forever.
Whether it be pending mergers and acquisitions, regulatory uncertainty, or simply high market volatility, "special situations" can create some very attractive investment opportunities. This article highlights six of them.