For your reference, sharing some updated data on big-dividend REITs (which have not performed well in recent years as rate hikes and work-from-home set in). The data is sorted by REIT industry and market cap.
BlackRock's Big-Yield Bond CEF (BIT) Is Beating PIMCO’s (PDI): Here's Why
PIMCO’s big-yield bond CEFs are perennial favorites, however underdog BlackRock has been outperforming in some cases over the last 3-5 years. For example, BlackRock’s 9.8% yield bond CEF (BIT) is posting better total returns than PIMCO’s widely popular PDI. In this report, I explain why (including comparative metrics on distributions, leverage, potential return of capital and more), and then conclude with my opinion on how income-focused investors may want to consider allocating their income-focused investment dollars (i.e. PIMCO or BlackRock).
ServiceNow Earnings Note: Great Business, But What About the Valuation?
Meta Earnings Note: 5 Takeaways
PIMCO Big-Yield Bond Funds (PAXS, PDI, PDO, PTY): Distributions > NII
PIMCO’s big-yield bond funds are often an income-investor favorite because of their large 9% to 13% yields. Some investors have been traumatized in recent years as prices fell hard (when the fed rapidly hiked interest rates) while other investors haven’t cared as long as the big monthly income payments kept rolling in. This article provides an update on PIMCO bond funds now, and my opinion on which may (or may not) be worth considering for investment, mainly in light of how PIMCO is sourcing the distribution payments to investors.
Quick Note: Celsius - Pepsi Partnership
Capital Southwest: 40+ Big-Yield BDCs Compared
If you are an income-focused investor, big-dividend Business Development Companies (“BDCs”) are hard to ignore. However, not all BDCs are created equally. In this report, we review one BDC Capital Southwest (including its business strategy, dividend safety, valuation as compared to 40+ other BDCs, and the risks). We conclude with our strong opinion on investing in Capital Southwest in particular and BDCs in general.
Main Street Capital: 40 Big-Yield BDCs Compared
With earnings season for big-dividend Business Development Companies (BDCs) about to kick off in a few weeks, it’s worth reviewing high-level data on the group (i.e. 40+ Big-Yield BDCs) and Main Street Capital (MAIN) In paticular. We consider current price-to-book values (versus history), current market conditions (including how much credit spread risk is priced in) and the breakdown of historical returns (in terms of price gains versus dividend income). We conclude with which BDCs we currently like best (including the ones we own and the ones we are considering).
This Payment Processing Software Company Looks Good
Top 10 High-Income NOW Securities
This note includes an update on our Top “High-Income NOW” securities, including a new Top 10 tear sheet and a link to the complete High-Income NOW Portfolio for April. The list remains dominated by one of the four main high-income food groups (CEFs, BDCs, REITs, big-dividend Blue Chips) based on current market conditions.
Top 10 Growth Stocks, Ranked (3 Megatrend Edition)
In case you’ve been living under a rock, Artificial Intelligence (“AI”) has been hot. Beneficiaries like Nvidia and Super Micro Computer have experienced truly incredible price rallies (thereby making lots of shareholders very happy). But the reality is, AI is not the only megatrend driving the market today (it’s not even the biggest one). In this report, we countdown our top 10 growth stock rankings, and we view them through the lens of three separate long-term megatrends (that could lead shares dramatically higher for many years to come). If you are a long-term growth investor, the ideas in this report are worth considering.
Snowflake: 20+ Top AI Stocks, Ranked
Fads come and go. Megatrends (such as urbanization and the internet) change the world. Certainly, megatrends can get ahead of themselves (there was an internet bubble in the early 2000s, and more recently China built entire cities expecting rapid pockets of urbanization that never happened). Some investors wonder if Artificial Intelligence (“AI”) is a fad, a megatend that has gotten ahead of itself, or still in its infancy. In this report, we address this question with a variety of data points (including comparative data on 20+ top AI stocks) and a special focus on big-data AI stock Snowflake (SNOW) (including its business, growth opportunity, valuation and risks). We conclude with our strong opinion on AI as a theme and Snowflake as an investment opportunity.
Alphabet, Big Risks: Bing AI, Apple DOJ, Meta-Like Spending
Alphabet (GOOGL) shares are up a measly 7.9% this year, and up 10.8% over the last two-years. That may not sound too bad, but compared to other mega-caps like Microsoft (MSFT) (+14.2% ytd, +45.9% 2yr) and Meta Platforms (META) (+44.1% ytd +141.2% 2yr), Alphabet has been lackluster (and some investors worry it’s increasingly going the way of Apple (AAPL) (-10.4% ytd). In this report, we review Alphabet’s business, its big risks (e.g. AI threats, challenges from being enormous, high spending) and its current valuation. We conclude with our strong opinion on investing.
Arbor Realty: 13.3% “Sucker Yield,” 3 Better Big Divided Strategies
If you are an income-focused investor, Arbor Realty Trust (ABR) may be extremely tempting because of its massive dividend yield (currently 13.3%) and long-term track record of success. However, this mortgage REIT checks all the boxes for a “sucker yield,” and there are far better investment opportunities if you like to generate high income. In this report, we share 10 reasons why Arbor Realty Trust may be a sucker yield (i.e. a dividend that is “too good to be true”), and then conclude with three superior big-dividend strategies for you to consider.
Realty Income: Despite Big Risks, 5.8% Yield Worth Considering
Commerical real estate has performed terribly, and popular retail REIT (Realty Income (O)) has not been spared. With interest rates now sharply higher and shopping habits permanently changed, a lot of investors see more risk than opportunity. In this report, we review Realty Income’s business strategy, valuation, 5.8% dividend yield (paid monthly) and the very big risk factors it is currently facing. We conclude with our strong opinion on investing.
Lithium Stock: The Yin to Nvidia's Yang, Big Upside Ahead
Chip stocks (such as Nvidia) are notoriously cyclical (50% to 80% declines are not uncommon). Somewhat similarly, the materials stock (lithium) we review in this report is likely near the bottom of an epic cyclical decline of its own (shares are down 66%). And like Nvidia, this materials stock is a leading beneficiary of another big secular trend (rather than AI, it benefits from technological advances in batteries). In this report, we review the materials stock (including it business, market opportunity, valuation and risks) and then conclude with a comparison of its massive price appreciation potential as compared to Nvidia’s with regards to where each one sits in its own massive secular market trend.
35 Big-Yield BDCs: Despite Climbing Risks, 3 Top Ideas Worth Considering
BDCs can be an excellent source of high income, but they are not the holy grail that some investors believe. The group faces mounting pressures as well as categorical drawbacks (that are often overlooked). In this report, we share updated data on over 35 big-yield BDCs, review our concerns with the group, highlight 3 top BDCs that standout as attractive, and then conclude with a few alternative high-income opportunities that are currently worth considering too.
Palantir Snubbed: 7 Top “AI” Stocks, Big Upside
Despite the Nasdaq hitting new all-time highs this week, select disruptive growth stocks still have massive long-term upside potential, particularly certain names benefitting from the Artificial Intelligence (AI) mega trend (which, by the way, is still just getting started). In this report, we share 7 top ideas, with a special focus on “Big Data” AI stock Palantir, and then conclude with our strong opinion on investing in disruptive growth stocks at this point in the market cycle.
Pure Storage: AI Growth Accelerating
Contrarian CEF: Attractive 8.8% Yield
The popular utility-sector closed-end fund (“CEF”) we review in this report is attractive for several reasons (e.g. big growing monthly distributions, evaporated premium and attractively priced), if you can handle the associated risks of investing. In this report, we run through all the details and then conclude with our strong opinion on investing in this big 8.8% yield CEF.