This report shares updated data on 10 top big-yield closed-end funds (CEFs), including bonds, stocks and a couple utility-sector specific funds. They all offer attractive big yields, but one BlackRock fund stands out for a particularly compelling opportunity right now.
Top 10 BDCs: Contrarian Yield in a Greedy Market
Business Development Companies (BDCs) continue to provide big steady yields (income) to investors despite a challenging BDC environment, including interest rate volatility, increasing competition and economic uncertainty. Although BDC strategies are varied, they generally provide loans to riskier private business where traditional bank lending is less suitable, and then reduce aggregate risks by doing so through a diversified portfolio (within their areas of expertise). Many are facing selling pressure (see 14-day money flow index) and some trade below book value (generally an indication of fear, depending the the particular BDC strategy). Increasingly compelling contrarian yield opportunities in an otherwise greedy market environment.
PDI’s 13.8% Yield: Despite Coverage Shortfall, Shares Worth Considering
Just like inflation is a hidden tax on your money, so is return of capital (“ROC”) on your big-yield closed-end fund (“CEF”). For example, PIMCO’s CEFs are particularly impressive and attractive, just not as much so as many people seem to think considering not a single one actually covered its distribution over the last year (see table below). This report shares high-level data on PIMCO’s popular big-yield CEFs, with a special focus on the Dynamic Income Fund (PDI), and then draws a critical conclusion based on the risks and rewards.
“High Income NOW” Portfolio: Updates and a New #1
There is a new #1 position in the “High Income NOW” Portfolio (it’s an 11.9% yield monthly-pay security trading at a discount). There are also a handful of new buys, sells and position '“right-sizings.” The aggregate yield is 9.9% and that consists of 25 individual positions (including BDCs, a variety of stock and bond CEFs, individual stocks and more). If you like your investments to pay big steady income, you’re going to want to check out this top-idea report, including the usual caveats and specific exceptional investment opportunities worth considering right now.
40+ Big-Yield BDCs: Down, But Not Out
Here is a look at recent performance data for 40+ big-yield business development companies (or BDCs). As you can see, the prices are down this year, more so than the S&P 500, and the price-to-book values (a common BDC valuation metric) are down too. Let’s consider why, whether there is more pain to come, and if you should be hitting the eject button, holding tight or buying more.
PIMCO Big-Yield Bond CEFs: Update
As you can see in the following table, PIMCO offers some compelling bond fund CEFs, yielding 10%+, paid monthly. However, you might also want to take a look at the current distribution coverage ratios, price premiums (versus NAV), and share prices (versus 5-year range) before investing, as you can see below.
75 Big-Yield CEFs: Compelling Pricing
40+ Big-Yield BDCs Compared (Big Dividends Report)
Big Dividends Report: 200+ Closed-End Funds
If you enjoy digging into the universe of data (to help yourself identify attractive opportunities for further research), this report shares updated data on over 200 big-dividend (technically “big-distribution”) Closed-End Funds (“CEFs”). The data includes a variety of CEFs (including taxable bond CEFs, non-taxable municipal bond CEFs, stock CEFs and more), and it is sorted by market cap (you likely recognize several of your favorites near the top). There is also a link to an Excel spreadsheet with all the data (for those of you who like to sort, slice and dice the data your own way). We own several CEFs on this list in our Blue Harbinger “High Income NOW” portfolio.
Top 10 Big-Yields (November Update) Members
Despite macroeconomic concerns, the stock market has continued to post strong gains this year thereby leaving some investors wondering if it’s time to take some chips off the table. One popular approach is owning attractive big-yield investments (6% to over 10% yields) that will continue to pay high income regardless of what happens in the broader market. In this report, we provide an overview of “frothy” market conditions (e.g. valuation metrics) and then countdown our top 10 big-yields (including BDCs, stock and bond CEFs, REITs and more). We conclude with a critical takeaway that is sadly overlooked by many.
Big-Yield BDC Comps: ARCC, MAIN, OBDC, OCSL
A lot of income-focused investors are attracted to BDCs for their large dividend yields. However, not all BDCs are created equally. In the following table you will see comparative data for top BDCs, including the percent of investments that have fixed-versus-floating rates, the percent of debt they have that is fixed-versus-floating rate, price-to-book value, current dividend yields and the percent of first lien loans they have made as investments.
100 Big-Yield CEFs, Compared
BDCs (Big Yields): Prices Weak as Credit Spreads Widen, Rate Cuts Loom
Sharing Updated Data: Big-yield BDCs have been particularly weak over the past few weeks (following earnings), especially in light of widening credit spreads (i.e. lending risk) and a looming rate cut by the fed (which will negatively impact some floating rate recipients more than others). Sharing updated comparison data on 35+ big-yield BDCs, plus a brief opinion on whether now is the time to buy or head for the hills.
50+ Big-Yield CEFs: These 2 Worth Considering
In this quick note, we’re sharing updated data on 50+ big-yield closed-end funds (“CEFs”) from across categories. You likely recognize many of these top names. We’re also highlighting two in particular that are attractive because of management’s new active initiatives to shrink the discount to NAV (a good thing).
Distribution Quality Scores: 10 Top Big-Yields, Ranked
One of the greatest concepts ever is retiring and simply living off the dividends. No work, no tasks, just big steady distributions rolling in like clockwork (for you to spend and live life however you please). The problem with this, of course, is that many investors end up chasing after the biggest yield opportunities without properly considering the quality of those yields. In this report, we introduce our “Big-Yield Quality Scores,” ranking 10 very popular big yields, including PDI, JEPI, SCHD, USA, ARCC, AGNC and more.
Top 10 Big Yields: CEFs, BDCs, REITS (May 2024)
It’s a great time to be a big-yield investor (6% to 13% yields). For starters, the aggressive interest rate hike cycle (that pressured the prices of interest rate sensitive securities lower over the last two years) has now ended (as per fed chair Jerome Powell, it’s unlikely the next interest rate move will be higher). And with interest rates now settling in at their highest levels in over two decades, certain out-of-favor contrarian opportunities are particularly compelling. In this report, we countdown our top 10 big-yield opportunities, including closed-end funds (“CEFs”), business development companies (“BDCs”), real estate investment trusts (“REITs”), dividend stocks and more.
100 Big-Dividend REITs, Compared
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.
PDI (13.8% Yield): Up Big, More Gains Likely Ahead (100 Big-Yield CEFs Compared)
If you like high income investments, two things are likely true: (1) you are aware of the big double-digit yields offered by PIMCO closed-end funds (“CEFs”) and (2) you’re likely disgusted by the returns of said bond funds over the last few years. However, the tide has shifted as interest rate hikes have ceased (and may reverse). And as we correctly predicted, the brief price discount on PIMCO’s PDI (versus NAV) has evaporated and the shares now trade at a premium. What’s special is BOTH the premium and share price will likely increase dramatically in the months, quarters and years ahead. We explain in this short report and also share data on 100 other big-yield CEFs (many also paid monthly) for comparison purposes.
Top 100 Big-Yield Closed-End Funds (Ranked)
In this report, we share updated data on 100 big-yield CEFs from across a variety of categories. The data is ranked by market cap, per category, but you can also compare these big yield opportunities on discounts-premiums, leverage, recent performance metrics and more. We conclude with our opinion on where we’re seeing the best (and some of the worst) big-yield opportunities in the current market environment.