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.
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.
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.
As a follow-up to our recent report “Big Divided BDCs: Ranking the Best and Worst,” this article provides the details for our top 4 favorites Business Development Companies. Two of the four are internally managed, all have recently sold off creating a more attractive entry point for long-term investors, and they offer dividend yields of 10%, 7%, 13%, and 10%, respectively.
Annaly may have the financial wherewithal to maintain its big dividend (11%) for more than the next few quarters, but its asset value and share price are in peril, and so is the company’s long-term dividend sustainability. The recent Hatteras acquisition is an ominous reminder of the atrocious yield curve and Annaly’s shrinking balance sheet. The upcoming REIT sector creation and approaching Fed interest rate hike may put a damper on this year’s dividend-stock hype.
Artificially low interest rates have pushed many investors out of traditional fixed income categories and into high-dividend low-volatility stocks such as AT&T. But as many of these stocks start to look expensive, some investors are now reaching into covered call strategies to eke out some extra income. In this article, we highlight five big income options that we like more than AT&T covered calls.
This past Friday (6/10) was not a good day for high yield stocks as the market was in a risk-off mood. This article includes a table highlighting 50 stocks, yielding over 5%, that experienced large 1-day price declines on Friday. And of the 50, we believe five currently offer particularly attractive investment opportunities for income-seeking investors. Here are the five...
Artificially low interest rates by central banks around the world continue to make it challenging to find attractive yield. With that in mind, we have provided detailed analysis (and reports) for twenty big yield investments that we believe are worth considering. The list includes common stocks, preferred stocks, REITs, MLPs and BDCs, and we’ve broken it down into two groups: (1) Big yield investments with low volatility, and (2) Big yield investments with higher volatility and higher price appreciation potential.
Main Street Capital is an attractive Business Development Company (BDC) that offers a big 6.9% dividend yield. And if you factor in the semiannual supplemental dividends, the yield climbs to nearly 9.0%. We believe Main Street offers significant price appreciation potential with relatively low volatility as well as important diversification benefits. If you are an income-focused investor, it’s worth a closer look.
Artificially low interest rates by central banks around the world have made it very challenging for income-focused investors to find attractive yield. With that in mind, we have highlighted nine (9) big yield stocks that we believe offer very attractive dividend payments and significant price appreciation potential. For your consideration, here is the list.