This report is a continuation of our free public article titled “Market Top Coming: Top 10 High-Yield Investments Worth Considering," however this members-only version includes the Top 5. For some color, three of the Top 5 are high-yield bonds, and two are high-yield preferred stocks. Without further ado, here is the list...
5. Navios Maritime Bonds, Yield: 15.2%
Navios Martime offers preferred shares, but it is the company’s high-yield bonds that are most interesting to us (we own them). As the market confidence in this industry (shipping) has improved, so has the price of the bonds, but they still trade at an attractive price. For our details write-up, check out our recent Navios report:
4. Seagate 2027 Bonds, Yield: 5.0%
Seagate Technology (STX) is basically a provider of hard disk drives (“HDDs”). Bulls argue that Seagate is a free-cash-flow machine that easily covers its huge dividend (5.2% yield), and is poised to grow from the continuing proliferation of digital data and cloud customers. But Bears point to Seagate's lack of HDD competitive advantage, competitive threats from technologically improving solid state drives (“SSD”), and the large short-interest on Seagate's stock, all as warnings signs to stay away!
In our view, Seagate is certainly not filing for bankruptcy tomorrow, but its long-term viability is questionable. We believe income-investors would be well-served to consider Seagate’s bonds, instead of the stock. Specifically, we believe Seagate has more than enough financial wherewithal to support the bonds, and they currently trade at an attractive price as shown in the following graphic.
And for reference, you can read our earlier full write-up on Seagate here:
3. Stag Industrial, Series-C Preferred Stock (STAG-C), Yield: 5.3%
If you like higher-yield and lower-risk, you may want to consider the preferred shares of Stag Industrial. The shares of this industrial REIT offer a higher yield than its popular common stock, and they're also significantly less volatile and safer. But before you go diving in headfirst on the preferreds, check out our recent Stag Preferred Share report (it includes a few things worth considering):
2. Ferrellgas Partners Bonds, Yield: 11.3%
Ferrellgas is another example where the bonds are more attractive than the stock/equity (we own the high-yield bonds). Specifically, the equity is getting no love from the market because the company cut the dividend, but the bonds remain very safe (they’d cut the dividend on the equity just to support the bonds if they ever needed to). You can read our full write-up on why we own these bonds here:
1. Tsakos Energy Navigation Preferred (TNP-E) Yield: 9.2%
We own Tsakos Navigation’s common stock (TNP) and we believe its preferred shares are also very attractive. Depending on you tolerance for risk, the preferred shares are less volatile (safer) and offer a higher yield. We provide detailed information on Tsakos in this members-only report: