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Main Street's 6.8% Yield: Despite Intensifying Risks, It's Worth Considering

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.

Tsakos: Tempting High Yields, Cash Flows Uncertain

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.

Attractive Dividend Dog Of The Dow: Anti Froth-Chasers, Trade War Fearmongers

“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.

WP Carey REIT: Tempting 6.2% Yield, But Is The Price At Risk?

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.

Tempting 8.3% Yield, Price Upside, On This New, Oil & Gas, Small Cap

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.

WP Carey REIT: Tempting 6.2% Yield, But Is The Price At Risk?

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.

Attractive 8.3% Yield CEF, On Sale, Lower Risk

This particular Closed-End Fund (CEF) offers a big 8.3% yield, and it is currently trading at an attractively large discount to its net asset value (NAV). This article explains why this particular CEF presents a very attractive buying opportunity, and we also review the risk factors that investors should be aware of. If you like high-income and less downside risk, this one is worth considering.

CBL's High-Yield Bonds Are Increasingly Attractive (6.1% Yield + Price Appreciation)

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 Could Underperform for Decades (Devil’s Advocate)

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.

STAG: Big Dividend and Room to Run, But Watch It Closely

STAG Industrial (STAG) is a REIT that pays a big monthly dividend (5.0%), and it's been delivering outstanding price returns, but it's also riskier than many investors realize. This article provides an overview of STAG's strategy, details on the three main factors that drive its price performance, an explanation of why it has performed well in its relatively short life, a review of some big risks, and finally our views on how to "play" an investment in STAG.

The Average Investor Has a Terrible Track Record

Some investors have forgotten, and some investors just don’t know, but if you are a retail investor, over-trading is generally very bad for your wealth. This article provides a few reminders, perhaps eye openers, starting with this “oldie but goodie” chart about just how bad the average investor really is.

Tectonic Market Shift Starting - Are You Ready?

This article reviews a big market shift that is just starting, and how to profit from it. Tax reform and shifting monetary policies are slowing recent winners (e.g. large growth stocks and technology) and propelling some attractive mean reversion opportunities. In particular, we like small cap, value, and US stocks right now. In September, all three Blue Harbinger strategies extended their long-term track records of outperforming the S&P 500.

Seeking Income: 5 Better Options than Caterpillar

Caterpillar has a lot more long-term upside potential, but we sold 100% of our Caterpillar shares this morning for a gain of +110% after owning them for 19 months. Before describing the 5 better income-producing investments, we review why we sold our shares of Caterpillar. Our 5 better options than Caterpillar for income-seeking investors are organized from least to most risky, but they’re all attractive, in our view.

How Not to Invest: 7 Deadly Sins of Long-Term Investing

Long-term investing is a proven strategy to build wealth, and it is a lot more powerful than many investors realize. However, whether you are brand new to investing or a seasoned pro, there are seven terrible mistakes (deadly sins) that can easily prevent you from achieving your goals.

Top 5 Big-Dividend Healthcare REITs

Healthcare stocks (XLV) have gained 14.5% over the last year, thereby keeping pace with the overall market as measured by the S&P 500 (SPY) which gained 15.0% over the same time period. However, there are a variety of reasons why healthcare REITs have significantly underperformed, many of them delivering negative returns, as shown in the following table.

10 Reasons Ventas Is Better Than Welltower

Ventas (VTR) and Welltower (HCN) are both healthcare REITs focused mainly on senior housing. They face similar risks and similar opportunities. This article describes ten similarities between the two and then provides 10 reasons why we believe one is more attractive than the other. We've also ranked the winner on our broader list of Top 5 Big-Dividend Healthcare REITS Worth Considering.

Omega’s 7.7% Yield: A Balanced Perspective

There is a reason why Omega Healthcare Investors’ (OHI) yield (7.7%) and short-interest (21.2%) are so high. And yesterday’s release of the new GOP healthcare bill did nothing to improve the situation This article provides an update on Omega, highlights several bad reasons to invest, and concludes with our views on the right way to think about this high-yield REIT.

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