At Blue Harbinger, we are disciplined long-term investors. But that doesn’t mean we don’t pay attention to short and mid-term market technicals. Technical analysis is a tertiary consideration for us, behind asset allocation (e.g. “beta,” or your mix of stocks, bonds, cash) and picking attractive individual securities (e.g. “alpha”). Here is how we monitor technical conditions, and some thoughts on whether the strong start to 2019 is just a “relief rally” within broader bear market conditions.
New Residential continues to pay attractive big dividends, but its share price is down more than 20% from its recent highs. After a brief review of how NRZ makes money, the big risks it faces, and why the business is attractive, we provide details on why the share price has fallen over 20%, and what might come next. We conclude with our views on investing in NRZ.
The S&P 500 has declined over 14% since the start of October as fearful investors have been selling, in many cases indiscriminately. Fear mongering media narratives are usually based, in part, on some truths, such as tariffs, declining oil prices and the fed. This article focuses on contrarian high yielders in which we allocate some of our investment dollars opportunistically, like when fear is higher and prices are lower, as is increasingly the case right now. Without further ado, here are our top 10 big yields worth considering.
Energy Transfer (ET) offers a big 9.5% yield, and it trades at a very attractive EV-to-EBITDA relative to peers. However, if you’re going to invest, you may want to consider the big risks ET is currently facing (i.e. the price is low and the yield is high for a reason). This article provides an overview of Energy Transfer, reviews the big risks the organization faces, and concludes with our views on whether Energy Transfer is worth considering as an investment.
Main Street Capital (MAIN) is a popular income-investor Business Development Company (“BDC”) because it offers an attractive 6.8% yield, and both the dividend payments and the security price have been increasing significantly for years. This article briefly reviews the company and its many attractive qualities, then gets into the big risk factors that investors should be aware of. We conclude with our views on whether MAIN is still an attractive security to own or if it’s time to look elsewhere.
Whether it’s caused by climbing interest rates, trade war fears, or something totally different, the market has sold-off sharply, and in many cases indiscriminately. If you are looking for high-income, at an attractive price, this 10.5% yielder is worth considering.
As the 10 year treasury yield hit a 7-year high on Thursday, the market got jittery. Specifically, many investors fear the fed’s increasingly hawkish monetary policies will put the brakes on the 9-year bull market rally. As a result, stocks sold-off. However, not all stocks are created equally, and some very attractive high-yielders extended their unwarranted slides. Here is a list of 100 high-yield stocks that have continued to sell-off, followed by five specific high-yielders that are attractive and worth considering.
Triton is an intermodal shipping container company (i.e. the ubiquitous steel boxes on ships, trains and trucks), and it offers a tempting 6.3% dividend yield. But before you consider owning shares (or hanging on to the shares you already own), you might want to consider a couple big risks.
With the bull market running for over nine years now, not a day goes by where someone doesn’t claim the end is near. Nonetheless, the economy continues to strengthen, and no one knows for sure when the next bear will arrive. However, we do know that not all stocks move in lockstep with the broad market indexes, and opportunities constantly arise to cater your investment portfolio to meet your own specific needs. This article reviews our top 10 high-yield contrarian opportunities, from across 10 different investment categories, all for you to consider as you build and manage your own investment portfolio.
Tsakos Energy Navigation (TNP) is a marine shipping company (mainly crude oil) that offers an array of high-yield equities including 5 series of preferred shares with dividend yields from 7.9% to 9.5% and common shares offering a 5.8% dividend yield. But before you start trying to decide which of Tsakos’ many high-yield securities you want to invest in, you might first want to consider whether you believe the business will actually produce the cash flows necessary to support those payments to investors. This article details the two biggest risks threatening Tsakos’ future ability to pay, and then reviews the differences between the company’s array of high yield securities. We conclude with our thoughts on how income-focused investors might want to “play” Tsakos.
“Dogs of the Dow” is basically a high-dividend contrarian strategy, whereby an investor selects annually for investment the ten Dow Jones (DIA) stocks with the highest dividend yields. This article reviews one particular Dog that we consider particularly attractive right now because of overblown trade war fears, its low volatility, its big growing dividend, and because the market is vastly underestimating its improved business.
Interestingly, after 2 years of underperformance, REITs have staged a bit of a comeback (see chart), but why has WP Carey REIT (WPC) not kept pace? This diversified commercial property REIT has a tempting 6.2% yield, but this article considers the safety of that yield, as well as some important clues about the valuation and the opportunities going forward.
This week’s Weekly highlights an increasingly attractive high-yield, oil & gas, small cap that began trading earlier this year. It’s a case where some investors gave up very big long-term income in exchange for upfront cash via an IPO. It pays monthly, and the shares just sold-off, as shown in the chart. We consider the attractive qualities and the risks, and conclude with our bottom line views.
At Blue Harbinger, we never make investment decisions based on technical analysis alone. However, we absolutely do pay attention. One of the ways we monitor technical market conditions is by helping the renowned Jeff Miller create his weekly Stock Exchange report. The report not only reviews specific technical trading ideas, but it also shares the mid and longer-term results of Jeff’s various technical trading models—which can be extremely insightful as to what has and has not been working from a technical standpoint (e.g. momentum vs reversion). Without further ado, here is this week’s report.
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.
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.
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.
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.