If you are an income-focused contrarian investor, closed-end funds (“CEFs”) can be a corner of the market ripe with interesting opportunities. This article focuses on an attractive high-income CEF in the healthcare sector—a sector with plenty of long-term growth opportunities, but currently somewhat out of favor considering it has underperformed other sectors so far this year.
Simon’s 4.7% Yield: Despite Cloud of Negativity, It’s Worth Considering
Simon Property Group (SPG) offers an attractive 4.7% yield and a compelling valuation. However, it continues to face pressure from market fearmongers and negative sector narratives. This article reviews the cloud of negativity surrounding Simon, and then considers the health of the business, valuation, risks, dividend safety, and concludes with our opinion about why Simon may be worth considering if you are a long-term income-focused investor
Navios Maritime Partners: 8.2% Yield, Prince of an Investment?
Navios Maritime Partners (NMM) generated enough operating cash flow to cover its distribution more than four times over, over the last quarter. And with a DCF yield of 36%, and shares trading at 1/3 estimated NAV (shares 97¢, NAV $2.91), is there any reason to believe this isn’t a prince of an investment? But of course there is more to this story… What follows is a guest article by Darren McCammon of Cash Flow Kingdom.
Simon Property: 5 Popular High Yield REITs, Due For A Pullback
As the market has climbed dramatically this year, so too have many popular high yield REITs, such as SPG, O, WELL, VTR, OHI, STAG and WPC. And despite the Fed’s recently decreased interest rate hawkishness, it is still concerning to see these popular “safe haven” REITs did NOT fall nearly as hard as the rest of the market during Q4 and their share prices & valuations are now unusually high. When sentiment changes, these popular REITS are due for a pullback, perhaps a big one. This article reviews valuations and concludes with our opinions.
Omega Healthcare: Tempting 7.2% Yield, But Know The Big Risks
Afraid You Missed The Rebound? Try This Powerful Growth & Income Trade
If you’re afraid you’ve already missed the big market rebound, or if you’re afraid this is a dead cat bounce and we’re going to retest the lows, then this high income generating trade is worth considering. This is a powerful growth stock, the market is being too short sighted (as usual) and the premium income on this trade is big.
An Attractive Income-Generating Options Trade Opportunity
If you are looking to generate some attractive upfront income, on a powerful dividend-grower with an increasingly attractive valuation, then you may want to consider this options trade idea. The shares of this blue chip company have sold off sharply on near-term fear, but still have attractive long-term value and growth prospects. The near-term fear and volatility have caused the upfront premium income available in the options market to be quite attractive, in our view.
Big Blue Finally Turns The Corner, Yields: 5.1%
Kraft Heinz: Why This Hated 5.4% Yielder May Have 25% Upside
This Market Will Go Higher: 3 Attractive Contrarian Plays
What a difference a quarter can make. At the end of Q3 the skies were blue and investors were happy. Now, according to the media, the world is ending. Non-stop talk of trade wars, plummeting oil prices, a government shutdown, and monetary policy uncertainty and fear. Guess what? This market will go higher and if you wait for the robins, spring will be over. If you’re sitting on the sidelines (i.e. holding more cash than usual), here are three attractive contrarian investment ideas for you to consider.
The More It Falls: Top 5 Big Yields Worth Considering
This report is a continuation of our free report title “Top 10 Big Yields Worth Considering.” However, this members-only version contains all the detail for the top 5 big yields worth considering. It includes equities, debt, a closed-end fund, and a very attractive preferred stock. All yielding between 6% and 12%, and all trading at very attractively discounted prices.
These Shares: Widely Attractive Growth, On Sale
This powerful large cap blue chip company has attractive business spread across attractive growth opportunities, and the recent market wide sell off has created an increasingly attractive entry point for disciplined long-term investors. While the market panics, hold your nose and consider buying shares. Disclosure: We are long these shares.
Energy Transfer: Attractive 8.7% Yield, But Know The Big Risks
Energy Transfer (ET) offers a big 8.7% yield, and it trades at a very attractive EV-to-EBITDA relative to peers. However, if you’re going to invest, you may want to consider the big risks ET is currently facing (i.e. the price is low and the yield is high for a reason). This article provides an overview of Energy Transfer, reviews the big risks the organization faces, and concludes with our views on whether Energy Transfer is worth considering as an investment.
Tempting 11% Yield--Discounted Price, But Only If You're Brave
We like to share a mix of safe high-income ideas and higher-risk/higher-reward high-income ideas, so investors can choose for themselves and cater their investment portfolios to meet their own specific needs and preferences. This article focuses on a higher-risk/higher-reward 11% yielder that we currently own. The price has recently sold off, thereby making the yield more attractive, plus we believe investors will also earn attractive price appreciation. We own it as just one part of our larger diversified investment portfolio.
PCI: Attractive 8.6% Yield, But Know The Big Risks
The PIMCO Dynamic Credit and Mortgage Income Fund (PCI) is an attractive CEF for a variety of reasons (including its big 8.6% yield and discounted price versus NAV). However, a look under the hood shows that PCI is exposed to some very big risks. This article provides an overview of the fund, reviews the big risks investors may want to consider, and concludes with our opinion about investing in PCI.
Main Street Capital: Attractive 6% Yield, But Know The Big Risks
Main Street Capital (MAIN) is a popular income-investor Business Development Company (“BDC”) because it offers an attractive 6% yield, and both the dividend payments and the security price have been increasing significantly for years. This article briefly reviews the company and its many attractive qualities, then gets into the big risk factors that investors should be aware of. We conclude with our views on whether MAIN is still an attractive security to own or if it’s time to look elsewhere.
Teekay Preferred On Sale: Attractive +10% Yield, But Know The Big Risks
Teekay Offshore offers attractive, high-yield (+10%), preferred shares, that are currently trading at a lower price than normal and thereby offering a relatively attractive entry point for investors. This article offers an explanation of why the shares sold-off, why the investment is attractive, and what are the big risks that investors should consider. We conclude with our views on the attractiveness of this high-yield opportunity.
Overblown Fear: Attractive 8.7% Yield, On Sale
This Closed-End Fund is attractive after the recent sell-off, not only because it yields 8.7%, but also because overblown fear has caused it to trade at an unusually large discount to its net asset value. Strong management, very reasonable management fees, a prudent and conservative use of leverage, and a powerful market style allocation, all make this CEF attractive and worth considering.
A Blue Chip Among Blue Chips—With A Healthy Growing Dividend
If you’re looking for wild aggressive growth, this stock is NOT for you. If you’re looking to “sleep well at night” while also receiving steady growing dividend payments and a share price that will likely rise more than enough to offset the dangers of inflation, then this blue chip among blue chips is worth considering. We’ve owned it for years, it has performed very well, and we expect its strength to continue for many years into the future.
New Purchase: Sell-Off Creates Attractive "Disciplined Growth" Opportunity
This is a brief note to let our members know that we have initiated a new position in our Blue Harbinger Disciplined Growth portfolio. This is a name we mentioned in our “Members-Only Shopping List” over the weekend, and with the shares down again today, we’ve started a position. This is NOT a dividend stock, it’s a powerful growth company.