Pfizer (PFE) has a reputation for being a blue-chip pharmaceuticals company. However, its recent performance has been weak as the overall healthcare sector (and drug companies, in particular) have under-performed the market (President Trump has taken over the fight to reduce drug costs for investors). And Pfizer in particular has been undergoing some significantly risky portfolio restructuring. As a result, Pfizer’s dividend yield (4.2%) is now significantly higher than normal (as the price has fallen), especially for a Dow Jones stock. This article considers whether Pfizer is currently an attractive big-dividend blue chip, or a dangerous value trap.
This biopharmaceutical company is engaged in research, development and marketing of biotech drugs. In this article, we analyze its business mix, growth and income prospects, balance sheet, risks and finally conclude with our opinion on whether the company’s stock offers an attractive balance between risks and rewards.
This attractive company is nearing the end of a very large strategic capital expenditure program, and on a trajectory for very strong EBITDA growth. And its preferred stock offers strong stable income thanks to the company’s structure. This article provides an overview of the company and then considers the potential returns, growth prospects, developments and risks. Overall, if you are an income-focused investor, this one is absolutely worth considering for a spot in your prudently diversified long-term portfolio.
Teekay Offshore Partners, LP is a leading provider of storage, production and transportation assets to the off-shore oil & gas industry. It’s preferred shares (TOO.B) offer an appealing dividend yield and stable cash flows, however uncertainties around future capital structure are worth considering. In this article, we analyze its business model, balance sheet, dividend potential as well as key risks and finally conclude with our opinion on whether the company’s preferreds offer an attractive balance between risks and rewards.
After a difficult period involving financial and operational reorganization, this energy company has emerged financially stronger and set to grow its already attractive dividend. This article provides a background on the company, analyzes its recent past, dividend potential and finally concludes with our opinion on who might want to consider investing.
Some investors view Energy Transfer, LP (ET) as a stable, cash flow generator. But are is it? And are the fundamentals actually improving? If you don’t know, it’s a Master Limited Partnership (MLP) that operates energy oriented transportation, storage and midstream assets in major production basins in the United States. This article provides a background on the company, analyses its cash flow generation, balance sheet, dividend potential and finally concludes with our opinion on whether investors should take advantage of the company’s high dividend yield.
Royal Dutch Shell (RDS.B) has a consistent history of paying dividends despite swings in oil and gas prices. The company has successfully used balance sheet and cost containment to sustain dividends during difficult times. This article provides a background on the company, analyzes its cash flow generation, dividend potential and finally concludes with our opinion on whether investors should add exposure to the company.
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.
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.
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.
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.
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.
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.
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.
W.P. Carey (WPC) has undergone major portfolio restructuring including its significant acquisition of Corporate Property Associates 17 Global (“CPA:17”) in October 2018, and its increased M&A and disposition activity, in general. And while this activity is creating some operating turbulence in the near-term, management believes its inorganic growth strategy will be accretive to AFFO/share in the long-term. This article considers the various strengths of WPC, its dividend safety, valuation, and then concludes with our opinion about whether WPC’s current operating dynamics are a red flag or if this big-dividend REIT is worth considering for investment.
HCP Inc. (HCP) was forced to dramatically restructure its portfolio over the last several years as a distressed sub-industry created major challenges for one of its business segments. However, HCP is now emerging as a much healthier healthcare REIT going forward. This article analyzes the corrective actions taken by HCP to address its operating challenges, and then considers the health of the business, valuation, risks, dividend safety, and concludes with our opinion about whether income-focused investors should consider HCP for stable long-term results.
Ventas Inc. (VTR) has significantly restructured its portfolio in the last two years to address a downturn in operational performance. The adverse impacts of these changes are expected to continue through 2019. This article analyzes the various challenges that have brought Ventas to its current position, and then considers the health of the business, valuation, risks, dividend safety, and concludes with our opinion about whether Ventas is an attractive choice for investors seeking stable long-term returns.
Welltower Inc. (WELL) has been consistently delivering sustainable and reliable growth to shareholders through its differentiated strategy and systematic capital allocation. However, it’s currently trading at a premium valuation. This article analyzes the various strengths of the company which have led it to being the top player in its industry, and then considers the health of the business, valuation, risks, dividend safety, and concludes with our opinion about whether long-term income-focused investors should be concerned about Welltower’s price getting too high relative to its value.
We’re sharing a new high-income-generating options trade. Last’s week’s volatility created a significant dispersion in sector performance, and the name behind this trade was one of the more extreme movers. If shares of this big-dividend REIT fall further, we’d be happy to buy at an even lower price. And we get to keep the attractive premium income this trade generates, no matter what.
This 8.3% yield fixed income closed-end fund (“CEF”) is currently trading at a relatively attractive price, and it is worth considering if you’d like to own some “non-stock-market” exposure within your investment portfolio; specifically, it can help diversify away risks as well as keep your monthly income high.