In a return to the basics, this week's Weekly provides details for a handful of safe big-dividend stocks that we consider very attractive. Long-term, contrarian opportunities that we believe are worth considering.
Two Compelling High-Yield Opportunities
This week’s Weekly addresses two compelling high-income opportunities (one of our own, and one from a Blue Harbinger member, Michael F). First, an attractive high yield bond that offers a double digit yield. It’s from a company that has experienced significant challenges, but appears to finally be “turning the corner.” Second, member Michael F has brought a high-yield MLP idea to our attention. Specifically, it’s an attractive ethanol logistics company that pays nearly 9% in distributions. However this company faces some big risks worth considering…
Another Attractive High-Yield Bond
Snap (SNAP): Load Up or Stay Away!?
We’ve had three interesting stock-specific inquiries from members over the last few days, so we are taking a moment to share. First, Doug from Antioch, Illinois notes that tech company Snap has fallen dramatically from its IPO highs just a few days ago, and wonders if now is a good time to buy. Next, Benjamin from France asks for our views on 2019 Alibaba Call Options. And finally, Michael from Lincoln, Nebraska asks about a new wood chip play, Enviva (EVA) which offers a big distribution yield of 7.3%. This article gives our brief views on all three of these opportunities.
An Alternative High Income Bond Strategy
If it is safe high income you seek, this alternative strategy may be worth considering. Rather than investing only in big-dividend stocks, this article highlights three specific corporate bonds, and an advanced-strategy to generate high income with relatively low risk. We believe these three specific bonds offer an attractive risk-versus-reward opportunity to boost your income and diversify your portfolio.
This Company's Bonds are Better Than Its Stock
This week’s members-only investment idea is an investment grade corporate bond with an attractive yield (nearly 6%). The stock of this company also offers a high yield (the dividend yield is over 5%), but we believe the risks associated with the stock are too high, and we actually prefer the bonds instead. Specifically, the long-term viability (>10 years) of the company is uncertain which makes the stock very volatile, but we believe the company will still easily generate enough cash flow to support the bonds...
An Increasingly Attractive 17% Yield
The maritime shipping industry has been decimated in recent years, with commodity prices down and multiple companies filing for bankruptcy. However, one of the shippers in particular has been showing dramatically improving financials, and we believe its high-yield bonds are even more attractive than its stock.
Sector Performance, Themes and Attractive Investment Opportunities
This week’s Weekly provides data (total returns) for 39 market sectors and industries (YTD, 1-Year, and 5-Year), and then provides an overview of several key investment themes opportunities with regards to oil prices, heath care companies, and financials. For starters, here are the total returns (dividends plus price appreciation) across sectors and industries.
Three (3) High-Yield Shipping Opportunities
The shipping industry has been decimated in recent years as measured by the Dow Jones Global Shipping Index (DJGSH) which is still down nearly 50% since mid-2014 (and it now pays an 11.9% yield!). And while there may be some very valuable contrarian opportunities in the space, many shippers are in deep distress and there will likely be more bankruptcies. This article highlights three ways to play the space.
Top 3 "Special Situations" Worth Considering
As a continuation to our free article "Six Special Situation Investments Worth Considering" this members-only article includes the Top 3. Two have to deal with the potential "aquiree" in M&A deals and the other is simply a high-yield distressed debt opportunity that is far less "distressed" than it used to be. Without further ado, here are the top 3...
7 Attractive Dividend Investments
This week’s Weekly provides an update and outlook for seven of our existing Blue Harbinger holdings. Specifically, we remain bullish on our healthcare REIT holding, we see more big gains on the industrials stock we purchased last summer, we remain comfortable with our commercial real estate position (despite signs the industry may soon slow), and finally, our four recent CEF purchases have seen their discounts to NAV start to shrink (a good thing), they continue to pay very large distributions, and we remain very bullish on their strategies.
An Attractive Investment Opportunity
Today we’re sharing an attractive investment opportunity for your consideration. It’s the type of investment that generally only works when market volatility is high. However, despite the VIX being at historically low levels, there are still pockets of high volatility in the market where the premium is attractive for selling insurance (puts) on stocks we’d like to own anyway.
Performance Update and Four Stock Ideas
A Brief Update on our Mortgage REIT Holding
We Own These 3 REITs In Our Income Equity Portfolio
This week’s Weekly reviews the three REITs we actually own in our Blue Harbinger Income Equity portfolio. One is a residential REIT with a unique business model and an important competitive advantage, one is a blue chip industrial REIT with access to many prime locations, and the third is a big-dividend healthcare REIT that offers a very compelling contrarian opportunity.
Ventas: Big Safe Dividend or Dangerous Value Trap?
Ventas (VTR) is a healthcare REIT that pays a big 5.1% dividend yield. But its share price has declined dramatically since last summer (and particularly since the election). And considering the huge demographic healthcare tailwinds at its back, it might seem like now is a great time to “buy low.” This article reviews VTR's future prospects, and provides our strong views on whether it’s an attractive income opportunity or a dangerous value trap.
“America First” is Great, but Global Diversification is Powerful
The 45th President of the USA likes to say “America First,” which is great in our view, but global diversification can be very powerful. Case in point, the US dollar has declined sharply versus the euro (EUR) so far this year (after a “yuge” November rally). This article highlights our holdings in US companies with significant non-US exposure as well as our non-US holdings. In addition to the diversification benefits, we believe there could be more rewards ahead for investors with overseas exposure.
Top 5 Big Dividends Worth Considering
This week's Blue Harbinger Weekly is a continuation of our free report, Top 10 Big Dividends Worth Considering, but this version contains all the details for the Top 5. We own all 5 of the top 5 as long-term positions in our Blue Harbinger Income Equity strategy (we purchased three of them just last week, and two we've owned since the first half of 2016), and their dividend yields are 7.6%, 9.9%, ~7.8%, 9.9% and 6.0%, respectively. Without further ado, here are the Top five...
New Trades: Income Equity Strategy
The purpose of this post is to provide an update on several new trades in the Blue Harbinger Income Equity strategy. Specifically, we have added several new attractive closed-end funds (CEFs) that offer very healthy yields. We also sold one of our biggest yielding individual stocks, and we provide a rationale for the sale.
7.6% Yield CEF, Superior Management, Big Discount to NAV
This particular closed-end fund (CEF) offers an attractive 7.6% yield, an amazing track record of top-notch management, and currently trades at an exceptionally attractive discount to its net asset value (NAV). We are also very comfortable with its holdings, particularly its sector exposures, and believe it’s poised to deliver very strong future returns.