CenturyLink is a big dividend (7.9%) telecom stock that is trading at an attractive price. The stock has been beat up over the last month (Mr. Market didn’t like earnings) and over the last several years (it cut its dividend in 2013, and market volatility has increased). We believe the market is overly negative on this stock, and now is a compelling time to add shares because the price is down, the valuation is attractive, and the dividend yield is outstanding.
Williams Partners: Turmoil Creates Opportunity
We believe the market has overreacted to the challenges Williams faces (e.g. low energy prices, counterparty credit/default risk, management reorganization, and rising interest rates), under-reacted to the value it creates (e.g. energy price agnostic fee business, the value of its assets, and its future growth potential), and it could be a valuable addition to the higher risk portion of a diversified, income-focused, investment portfolio.
Ladder Capital: Fear Highlights Risk, Creates Opportunity
Ladder Capital an mREIT with a big +9% dividend yield, (~+20% dividend yield if you count the December special dividend). Ladder’s price has fallen 30% in the last year for a variety of reasons (e.g. fears related to commercial real estate prices, rising interest rates, widening credit spreads, decreased CMBS issuance, and increasingly challenging regulations). But we believe this maybe creating opportunity...