We’ve written about the attractiveness of healthy dividend REIT Simon Property Group (SPG) in the past, most recently here. But we’re highlighting it again now because the valuation and income available are increasingly very attractive. The narrative that the Internet will kill all brick-and-mortar stores is way overblown in Simon’s case, so we are sharing this very attractive options trade opportunity.
If you haven’t heard, market volatility spiked last week and the yield curve inverted—a red flag many investors consider an ominous recessionary warning. And while current conditions almost certainly spell imminent doom for many investors, this article shares our top 10 ideas for investors to quickly adjust their portfolios to profit from the current market turmoil.
Big-dividend mortgage-related REIT, New Residential (NRZ), is down 16% in the last few months while the overall market (SPY) is still up. This article explains why it fell, what will likely happen next, and we conclude with an attractive income-generating options trade that you may want to consider.
This past week was a roller coaster complete with jostling ups and downs, but we finished very close to where we started (the S&P 500 finished the week down 0.4% after being down as much as 3.0%). Did you panic over the volatility and make bad decisions that cost you money? Did you lose sight of your long-term goals? This week’s Weekly reviews some our holdings, as well as pitfalls to avoid and opportunities to keep winning.
If you are looking for a differentiated source of high income, TriplePoint Venture Growth is a BDC that is worth considering. Not only does it provide a differentiated source of high income compared to traditional high income sectors and industries, but it trades significantly lower than peers, and at only approximately par (price-to-NAV just above one) after Monday’s broad marketwide sell-off.
“Trade Wars,” interest rate cuts, an eerily calm VIX, and the longest bull rally in history is leading many investors to believe we’re due for a market wide sell off (perhaps a big one) that could arrive any day now. We are not in the businesses of “fear mongering,” but being prepared for very bumpy roads ahead is just good investing. This week’s Blue Harbinger Weekly discusses two critical things you can do with your investment portfolio to be prepared for the next big market sell off. The first is to simply pick good investments (and we will review a few in this write-up). The second has to do with picking the right kind of investments—which we will explain in more detail.
There’s been plenty of discussion lately about where the Fed should be setting interest rates, especially considering over the last year expectations have changed from anticipating increases to cuts. The economy remains strong by many measures (e.g. strong GDP, low unemployment), yet the Twitter in Chief wants rate cuts to better compete internationally. And whilst this dramatic change in expectations has been occurring, one interesting 7.6% yield (paid monthly) floating rate closed end fund (“CEF”) has fallen very hard—perhaps significantly too hard. Specifically, not only have sinking rate expectations punished its floating interest rate holdings, but the pure selling pressure has caused the shares to trade at a very wide discount to the actual market value of its underlying holdings (it trades at an 11.6% discount to NAV). If you are an income-focused contrarian investor that likes to buy things at widely discounted prices—this one is worth considering.
The following chart shows expectations for interest rates set by the fed have changed dramatically over the last year from expected increases to expected decreases. And the big question to many investors is Why? With an economy that appears quite healthy (healthy GDP growth, low unemployment, inflation in check), why wouldn’t the fed be raising interest rates to a more normal level? Afterall, they’ve been abnormally low by most standards since the financial crisis. Is the fed bowing to the Twitter in Chief or are they simply punishing savers? There are plenty of retirees that long for the +15% yield on treasuries that existed in the early 1980s.
If you like to generate stable income from your investments, this energy focused CEF has a minimum annual distribution commitment of 6% and is currently trading at a discount of 16.7% to its NAV. The fund is one of the oldest CEFs and has a successful track record of paying over 80 years of distributions. The fund has been a consistent performer and what is even more encouraging is that it operates with no interest-bearing debt! If you’re looking for a powerful income-producing investment, with a long successful track record based on an indispensable element of economic growth, and trading at an attractively discounted price—this one is worth considering.
The market (SPY) has been on fire this year (+21.4%), however plenty of very attractive long-term investment opportunities remain. This week’s Weekly shares the performance of each of our holdings across all three of our strategies, and then provides concise commentary on attractive opportunities among REITs, healthcare, growth stocks and our high-income low-beta “Alternative Fixed Income” strategy. We conclude with a little advice.
The S&P 500 is now up over 20% this year, which is a big number. But to keep that in perspective, it’s up only 11.4% over the last year, and it’s averaging 10.7% over the last 5 years. Keep those more moderate numbers in mind the next time someone tries to frighten you into ditching your long-term strategy and selling everything because “the sky is falling.” This week’s Weekly reviews the performance of every position we own over recent time periods, and highlights a few ideas that are particularly attractive right now.
If you are looking for attractive high yield, this healthcare focused CEF is worth considering. Not only does it trade at an attractive discount to NAV, but the experienced management team’s approach to investing in the healthcare sector offers additional attractive benefits. The fund uses a healthy dose of leverage (and it does so prudently), and the strategy is poised for attractive long-term total returns.
In the face of non-stop fake and misleading news headlines, we stuck to our long-term strategies and delivered another month of healthy gains and income across our investment portfolios, as usual. This report reviews the individual holdings and performance across each of our strategies. We also review the absurdity of a few recent news headlines that are designed specifically to eat away at your hard-earned nest egg. Finally, we highlight a few of our current holdings that are particularly attractive for new investment dollars right now.
If you like to generate high income from your investments, this disciplined equity style CEF yields 7.2% and it is currently attractive in multiple ways. For example, its discount to NAV, its well-seasoned management team, its attractive style tilt, its US economy-focus, its impressive long-term track record, and its ability to help you diversify away from the traditional high income risks, all while using great discipline to pay you the steady high income payments you need. This CEF can be an attractive addition to your diversified, long-term, high-income-focused, investment portfolio. We own it.
With the S&P 500 recently hitting new all time highs, some investors fear we are overheating. One way to take a little risk off the table is by investing in attractive big-dividend REITs, which tend to rise and fall less with the overall market, but keep paying those big dividends throughout if you select them right. Despite, some analysts arguments that even REITs are overheating, many of them remain a much safer bet (with much higher income) compared to the overall market. This article addresses REIT valuation concerns, as well as overall market concerns in light of the Fed’s changing interest rate posture and where we seem to be (very late) in the current economic cycle. We conclude with our Top 10 Big-Dividend REITs worth considering.
This article is the private, members-only continuation of our free public report titled: Market Too Hot? Top 10 Big -Dividend REITs Worth Considering. Except this members-only version counts down the REITs we have ranked #5 to #1. Without further ado, here is the list…
If you’re going to manage some/all of your own investments, you ought to have some idea of your portfolio’s beta risk (so you can make sure it is appropriate for your goals). This week’s Weekly shares the updated performance data for each of our current holdings (as well as our “Contenders List”), and we’ve also included each position’s “beta” risk to help you gauge your risk exposure relative to your long-term investment goals. We’ve also highlighted a couple attractive investment opportunities.
Realty Income (O) is a popular monthly dividend paying REIT that has recently started to invest outside the US. This article considers whether this international forage is a good idea or if the company is now desperate for opportunities. We also consider the company’s portfolio, balance sheet, competitive advantages, dividend safety, valuation, and conclude with our opinion on whether or not Realty Income is still an attractive investment opportunity for long-term income-focused investors.
Undoubtedly, a lot of investors have made costly trading mistakes out of fear in recent days, weeks and months as volatility rises and falls. And the investors that continue to do best are the ones that stick to their objectives and strategies. The S&P was up 4.5% over the last 5 trading days, and our portfolios extended their long-term track records of powerful gains and income. This report shares the performance data for all of our holdings, and highlights some attractive stocks if you have extra cash that you need to put to work.
EastGroup Properties (EGP) has been one of the best performers in the industrial REIT sector over the last five years in terms of maximizing shareholder value. The company’s differentiated operating strategy and risk-adjusted targeted development program is expected to pave the way for future growth. This article analyzes the various strengths of EGP, looks at the dividend yield and valuation (the dividend has been consistently increasing, but the yield is still only 2.5% because the price keeps increasing too, as it should) and concludes with our opinion on whether EGP is worth considering if you’re a long-term dividend growth investor.