“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.
CBL and Tanger are two very hated retail REITs right now considering 40.3% and 53.0% of their shares (respectively) were recently sold short, and 0.0% of the Wall Street analysts covering them have a “buy” recommendation. Conversely, one of the big-dividend REITs we like and own has a negligible amount of short interest, and 100% of the Wall Street analysts covering it rate it a “buy,” as shown in the green bar chart. This update shares performance metrics on over 100 big dividend REITs, makes a few observations, and then highlights a couple of our favorites.
If you are an income-focused investor, there are lots of reasons to consider making an allocation to this attractive high-yielder, such as the high yield, monthly payments, attractively discounted price, hard to access investments, and its potential to be an effective hedge against rising interest rates. But before you dive in headfirst, you should also consider the risks. This type of investment is not for everyone, but if you like high monthly income, this one is worth considering, especially after the recent big and unwarranted sell-off.
The following table shows performance (total returns) for various style, sector and asset class ETFs. It also tells a story about where we are in the current classic economic cycle (not early!), and has implications for investors (i.e. now may not be the right time to get greedy). In this report, we review the data, share a prominent “selective data driven narrative,” and share our own opinion, before concluding with our viewpoint on how to be prepared.
We just made a new purchase in our Blue Harbinger Disciplined Growth portfolio. And before you start wondering, this is NOT a high-income investment. This is a powerful long-term cash flow thesis, and the recent short-term sell-off has created a compelling entry point.
If you like high income and attractively discounted prices, this article has 3 ideas for you to consider. The ideas range from equity CEFs to bonds to high-yield BDCs, but they all have two things in common: (1) high income, and (2) attractively discounted prices. Without further ado, here is the list...
Don't be this guy! As many investors got burned last month with overly concentrated "hyper-growth" portfolios, our performance continues to be strong, and we like our holdings going forward. Some of our under-priced securities started to post the big gains we believe they're overdue for, and a couple positions sold off, thereby making them even more attractive going forward; we will review those (and our overall performance) in this report.
There is a lot of gloom and doom surrounding big-dividend REIT Omega Healthcare (OHI). The negativity originates mainly from Omega’s many troubled operators. And investor fear has grown as short-interest remains high, the share price has been volatile, and the very recently announced termination of restructuring support for Orianna. With Omega expected to announce earnings this week, this article reviews the big risks before concluding with our views on who may or may not want to own this high-income REIT.
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.
This is a guest article from Darren McCammon. Darren runs the highly successful Cash Flow Kingdom on Seeking Alpha. We are paying-members of Darren’s service, and appreciate the high quality investment ideas he shares. This particular article is about an attractive, tax-advantaged, maritime shipping company that currently offers a yield in excess of 10%.
Netflix announced lower than expected subscriber growth numbers after the market closed, and the shares are down more than 13% in afterhours trading. This is a good reminder of the volatility and risks of FANG-type stocks (Facebook, Amazon, Netflix and Google/Alphabet) which have been performing extremely well, but have very high valuations. This article contrasts FANG stocks with data on over 100 high-yield stocks that have sold-off significantly this year and may be worth considering if you are an income-focused value investor. We also highlight four of our favorite opportunities from the list.
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.
All three Blue Harbinger strategies continue to deliver positive total returns and the yields are attractive too. This report provides details on performance and holdings, and provides updates on the biggest movers over the last month. We continue to believe these strategies are attractively positioned for continuing long-term market out performance (income and price appreciation).
We recently received an inquiry from one of our members about BDC Oxford Square Capital (OXSQ). It’s tempting considering its huge 11.5% yield, its discounted price-to-book, and its very low market beta. However, investors need to be aware of several very important things, including the vast difference between its price and total return, the very strong relationship between OXSQ’s price-to-book value and credit spreads, and how big hedge funds, including Citadel and Millennium, are trading in and out of this name regularly.
Perhaps one of the most overused analogies from all of sports (because it's so good) is from legendary hockey player Wayne Gretsky: "I skate to where the puck is going to be, not where it has been." This week's Blue Harbinger Weekly shares an attractive, growing, opportunity, that is becoming increasingly tempting as the shares have sold-off. This is one that backward-looking industry professionals may never see coming, until it's too late...
This article is the members-only, part 2 version, of our two part series on attractive high yields from across the capital structure. Specifically, this article highlights 5 increasingly attractive high-yield opportunities including preferred stocks, bonds and common equity. Here is the list…
If you like high income, Ship Finance International (SFL) is another name to consider. This article highlights 4 attractive qualities, 6 risks to monitor, and concludes with our views on when to consider adding more shares.
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.
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.
Sometimes simply comparing a diverse opportunity set can help you see things in a valuable new light. This week’s Weekly reviews a specific growth stock on sale, shares a list of over 400 stocks with yields over 5% (many of which we have written about, and some of which we own), and finally considers the attractiveness of selling income-generating “covered call options” on two of the higher yielding securities on our list.