This report is the members-only continuation of our free report titled: "50 High Yield Investments Down Big Friday: These Five Are Worth Considering."
2) AstraZeneca (AZN) is a biopharmaceutical company with a big 5.0% dividend yield. It sold off heavily again on Friday (it’s now down more than 16% this year), and we believe the market is overly pessimistic and too shortsighted with regards to AstraZeneca’s future. Specifically, the market is focused on the company’s upcoming loss of patent protection on two of its top drugs (Nexium and Crestor) over the next two years. And the market is completing missing the company’s tremendous long-term pipeline prospects. You can read our full AstraZeneca report here.
1) Williams Partners (WPZ) is a high-yield (9.9%) Master Limited Partnership (MLP) that has declined more than 50% since the second half of 2014. It trades for less than its book value, and a basic distribution discount model suggests the market has already priced in zero growth and a significant distribution cut. We believe the market has overreacted to the challenges Williams faces (e.g. low energy prices, counterparty credit/default risk, management reorganization, and rising interest rates), under-reacted to the value it creates (e.g. energy price agnostic fee business, the value of its assets, and its future growth potential), and it could be a valuable addition to the higher risk portion of a diversified, income-focused, investment portfolio. You can read our full Williams Partners report here. (We own shares of Williams Partners in the Blue Harbinger Income Equity strategy).
3) CenturyLink (CTL) is a big dividend (7.9%) telecom stock that is trading at an attractive price. The stock has been beat up over the last month (Mr. Market didn’t like earnings) and over the last several years (it cut its dividend in 2013, and market volatility has increased). We believe the market is overly negative on this stock, and now is a compelling time to add shares because the price is down, the valuation is attractive, and the dividend yield is outstanding. You can view our full CenturtyLink report here.
2) OneBeacon (OB) is a boring, low beta, low volatility, property & casualty insurance company that offers a big safe dividend yield (6.4%). Because of the nature of its business, it is a great diversifying “widows and orphans” stock, and it that can be very valuable within the constructs of a diversified, income-focused investment portfolio. The stock is down 8.5% in the last year while the S&P 500 is essentially flat over the same time period, thus creating a more attractive entry point for long-term, income-hungry investors. You can read our full report on OneBeacon here.
1) Triangle Capital (TCAP): Following its recent dividend cut, the stock declined roughly 15%, and the yield is now around 9.7%. We believe the company is significantly undervalued. Specifically, Triangle is undervalued because of its attractive cash flows, its big dividend yield, its strong internal management team, and its multiple layers of diversification benefits. We own it within the Blue Harbinger Income Equity portfolio. You can read our full report on Triangle Capital here.
Of course no one can say with certainty where the market will go tomorrow. But if you are a diversified, long-term investor, then the investments highlighted above may be worth considering for the higher risk portion of your income-focused portfolio.