China has been performing absolutely terribly this year, especially relative to the US, as the talk of more tariffs sounds more alarms. However, just yesterday we received news of planned trade talks between the two countries, and that possibility was enough to send China shares significantly higher for a one-day move. There could be a larger and significantly more violent snap back for Chinese shares if/when meaningful discussions actually take place, and if/when an amicable resolution is achieved.
If you are an income-focused investor, it can be worthwhile to consider opportunities from across the capital structure, including preferred stocks, debt and common equity. This article is part one of a two part series that looks across the capital structure to highlight a variety of increasingly attractive high-yield opportunities. Without further ado, here are the five...
New Residential (NRZ) offers a very tempting 11% yield, but before diving in headfirst, investors should be aware of the big risks that this mortgage REIT faces. After explaining how NRZ makes money, this article reviews six big risks, followed by seven reasons why NRZ is attractive and may be worth considering, depending on your situation.
If you like monthly income, then this attractive CEF is worth considering for a variety of reasons (e.g. discounted price, lower interest rate risk, attractive sector tilts, management, and more). However, there are also risks that should be considered (i.e. the focus on income over price appreciation, credit spreads, distribution coverage, and more). This article reviews the attractive qualities and risks, then draws some conclusions about who might want to consider this attractive high-yielder.
If you like high yield, low volatility, discounted prices, reduced interest rate risk, and improving businesses, then these fixed-to-floating rate preferred units are worth considering for a spot in your diversified income-focused investment portfolio.
Every investor has their own unique needs and tolerance for risk, and no one has a working crystal ball. Nonetheless, by assembling a prudent mix of portfolio investments, every individual can increase their odds for success. And depending on your situation, if you’re looking for an attractive coupon payment, plus the prospects for some attractive price appreciation (perhaps far sooner than the bonds mature), CBL’s bonds are worth considering.
REITs had been an extremely popular asset class up until the first half of 2016 when they took a turn towards significant underperformance. And as blind-value-chasers beat the REIT cheerleading drum, there are reasons to believe they could continue to underperform for decades. For example, REITs are no longer the attractive “bond proxy” as interest rates are now increasing, and these heavily-debt-reliant businesses could face tremendous headwinds if rates were to eventually rise back to over 15% as they were in the early 1980s.
With a 10.8% dividend yield (paid monthly), growing revenues, shrinking debt, and a very large total addressable market, the preferred shares of this healthcare IT company are worth considering if you are an income-focused investor.
FAANG stocks (Facebook, Amazon, Apple, Netflix and Google/Alphabet) have been posting very strong returns in recent years, and there are reasons to believe this could continue. However, investing in FAANG stocks generally involves significantly more volatility and risk - something many income-focused investors want to avoid. This article shares our ranking of 10 attractive big-yield investments, across 10 different investment categories, all with relatively lower risk profiles compared to FAANG.
Simon Property Group's share price continues to fall, and the yield is now above 5%. This article reviews the business, the negative market narratives (i.e. rising interest rates, increasing online shopping), the financial realities, Simon's valuation, and the M&A environment. We conclude with our views on how to "play" Simon Property Group in the current market environment.
Markets sold-off significantly on Thursday, with the S&P 500 down 2.5%. New tariffs from the White House, and comments from new Fed Chair (Jerome Powell) weighed on investors' minds. Nonetheless, the economy remains strong, and here are a couple of fun charts on the future performance of the S&P 500 after historical big sell-offs...
High-yield preferred stocks can be attractive to the companies issuing them and to the investors that own them, particularly when they trade below $25 per share. This article provides data on over 100 high-yield preferred stocks currently trading under $25 per share. We also highlight two particularly attractive high-yield preferred stock opportunities that income-focused investors may want to consider.
High yield bonds are risky. And they are not for everyone. However, if you’re interested in wading into this space, there are some very interesting opportunities to pick up attractive yield, and price appreciation, with risk-versus-reward profiles that are often skewed in your favor.
The lead stories on ABCnews.com, NBCnews.com and CBSnews.com are all about the stock market sell-off. That’s a good indication that more investors than usual are worried. But what’s an investor to do? Buy low? Step aside (Sell) and wait for the market to calm down? Or other?
There is a lot of fear mongering surrounding data center REIT Digital Realty (DLR). However, we believe its 3.4% dividend is safe and it will grow, and its price will increase too. This article reviews four fears circling Digital Realty, and then highlights three reasons why we currently like it
The new Stock Exchange is out, and this week we ponder whether The Tax Cuts and Jobs Act is already correctly reflected in market prices. Specifically, has the market already rallied enough, too much, or not enough?
Bitcoin is "total insanity" according to Berkshire Hathaway's Charlie Munger. It produces no earnings, and it cannot be valued. This article details why Bitcoin is "fool's gold," and then reviews a couple of our top big-yield ideas for 2018.
Yield-Chasing is one of the 7 Deadly Sins of Long-Term Investing. For example, when an investment offers a double-digit yield, it can be a red flag—perhaps an indication of distress. However, we believe the 10 ideas presented in this article are all attractive from a risk-versus-reward standpoint. Without further ado, here is our ranking of top big-yield opportunities, starting with #10 and counting down to #1.
Recent acquisition activities suggest some investors are starting to see deep value in the struggling retail REIT industry, as it adjusts to online retailers like Amazon. This article describes five attractive ways to play the industry with stocks, bonds and options. And if history is any indication, "hot stocks" will eventually underperform, and when the market capitulates, you may be left wishing you had diversified into a few more high-income, contrarian, retail REITs.
In my 30 years in the investment field, I do not recall a mania as intense as Bitcoin. It is everywhere you turn - global news networks and investment journals with 24/7 coverage. The intensity of the coverage is truly fascinating.