This is a very quick note, and it is intended to get this information to you quickly. There are currently a variety of attractive Bond CEF’s that are presenting extremely attractive buying opportunities based on their holdings, their currently discounted prices and their temporarily massive discounts to Net Asset Value (“NAV”). These particular Bond CEFs pay you income monthly (double-digit yields), we own them, and the current buying opportunity is highly attractive.
High Quality, Stable REIT: 5.6% Yield, Attractive Valuation
The recent market wide sell off has been ugly. This article focuses on a REIT that is particularly attractive considering management has been a sound steward of capital by simplifying the business model, lowering the cost of capital and growing the dividend. Further, this REIT may be poised to take advantage of current market distress thanks to its lower debt and the cushion it enjoys relative to debt covenants. If you are a long-term income-focused investor, this one is absolutely worth considering (we own it).
An Attractive Blue-Chip Healthcare REIT, Solid 5.4% Dividend Yield
This attractive blue-chip healthcare REIT offers a solid dividend and the potential for healthy long-term growth. We are impressed by its dividend history, healthy payout ratio, investment grade credit rating and significant demographic opportunity. The FFO growth outlook for 2020 is back to positive after a few years of challenges. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion about why it may be worth considering if you are a long-term income-focused investor.
Powerful Upside: This “Income via Growth” Stock Is on Sale
From time-to-time, we like to write about “income via growth” stocks at Blue Harbinger. These are stocks that can provide high income to investors through long-term capital gains (i.e. selling some of your winners). We write about these types of stocks because they can bring important risk-reducing diversification to an otherwise dividend-focused investment portfolio. And we are writing about this particular opportunity because we own it, and because it is particularly attractive right now following the recent market turbulence.
Attractive 13% Yield REIT: Unfairly Punished by Mr. Market
Mr. Market was already unfairly punishing this big-dividend REIT, but the recent market wide turmoil has made the price absurdly low and attractive. In this report, we analyze the company’s income profile, growth, dividend prospects and political risks. We conclude with our opinion on whether this big yielder is worth considering for a spot in your prudently-diversified, long-term, income-focused investment portfolio.
Gladstone REIT: Monthly 6.9% Yield Worth Considering, +2 Attractive Preferred Series
Gladstone Commercial (GOOD) is a REIT that’s been paying an attractive monthly dividend for 15 consecutive years, and it also offers two series of compelling preferred shares. The company plans to continue on its path of acquisitive growth and has a pipeline of $260 million for the year 2020. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion about why the shares may be worth considering if you are an income-focused investor.
Horizon BDC: 9% Yield, Paid Monthly, Attractive Growth and Income Combo
Many income-focused investors concentrate their nest eggs in the same subset of market sectors. Considering a few high-income investments in non-traditional high-income sectors can unlock tremendous value and opportunity. Horizon Technology Finance Corporation (HRZN) is a business development company, that pays a big monthly dividend, and offers an attractive combination of growth and value by focusing on development stage companies. In this report, we analyze the company’s income and growth profile, dividend prospects and finally conclude with whether the company’s stock offers an attractive balance between risks and rewards.
Enterprise Products Partners: Best In Class Midstream, Compelling 6.9% Yield, Still No K-1 to C-Corp
Enterprise Products Partners L.P. is an American oil and natural gas midstream service provider with its headquarters in Houston, Texas. In this report, we analyze the company’s business model, income, growth, distribution prospects and finally conclude with our opinion on whether EPD offers an attractive balance between risks and rewards.
Healthy 10.8% Yield: Political-Hot-Air-Driven Sell Off, Attractive Entry Point
Political rhetoric has created an attractive buying opportunity in this healthy 10.8% dividend yield company. The shares have sold off hard despite solid cash flows and a high demand business with long-term visibility. The rhetoric has heated up heading into this year’s election cycle, but this is a story we’ve seen before whereby the shares quickly rebounded following the elections. If you like big dividends and attractive buying opportunities, this one is worth considering.
Phillips 66: Powerful Dividend Growth, Significantly Undervalued, So What Gives?
Phillips 66 (PSX) has a diversified business model that reduces earnings volatility and delivers steady cash flows. As such, it has been able to raise its dividend every year for the last seven consecutive years. The stock offers a solid dividend yield of 3.4% along with a high probability of dividend increases and price appreciation. In this article, we dig deeper to ascertain the sustainability of dividends and also the company’s growth prospects. We review the health of the business, cash flow position, balance sheet flexibility, valuation, risks, dividend safety, and conclude with our opinion about why PSX may be worth considering if you are a long-term income-focused investor.
Simon Property Group: Enticing 5.6% Yield, Pristine Balance Sheet
Simon Property Group (SPG) is a retail REIT, with a pristine balance sheet, and a consistent history of growing revenue and dividends. However, growth in revenue has slowed marginally due to a rise in retail bankruptcies (online shopping is disrupting traditional retail). This article reviews the business, the enticing 5.6% dividend yield, the valuation, the risks, and concludes with our opinion about investing.
This Data Center REIT: Healthy Growing Dividend, Buyout Is Coming…
This particular data center REIT offers an attractive investment opportunity for investors seeking steady growing dividend income (it’s raised the dividend 7 years straight) along with the strong potential for capital gains (the growth outlook is attractive) and a likely buyout (it will get acquired at a premium price…a good thing) in the relatively near future. A significant push into Europe has been a drag on margins which remains a near term concern (i.e. a buying opportunity!). This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion about why this particular REIT is worth considering if you are an income-focused investor.
GasLog Partners: Solid 14.1% Yield, Cyclical Sector, Preferreds Yield 8.5%
GasLog Partners has a history of paying and raising distributions consistently despite being part of the highly cyclical LNG shipping industry. The 14.2% distribution yield on the common shares is interesting (and so are the preferred shares), especially considering the likelihood of price appreciation. In this article, we review the health of the business, cash flow position, balance sheet flexibility, valuation, risks, dividend safety, and conclude with our opinion about investing in GasLog.
These 4 Muni-Bond CEFs: Powerful Non-Taxable Income, Low Risk
Municipal Bonds can be an attractive, yet often overlooked, way to generate healthy income with low risk. In particular, and depending on your tax bracket, muni bond’s tax-exempt status can boost your after tax income significantly. In this report, we analyze four Municipal Bond CEFs (closed-end funds) based on portfolio characteristics, return/risk, yield prospects and finally conclude with our thoughts on the pros and cons of each. We currently own two of the four in our Alternative Fixed Income Portfolio.
3 PIMCO Bond CEFs: Huge Yields (8.1%, 8.3%, 9.8%) Paid Monthly
If you are an income-hungry investor, PIMCO offers a variety of low-beta, fixed-income Closed-End Funds (“CEFs”) that are worth considering. In this report, we analyze three of them, multi-sector funds (PFL) (PHK) and (PCI), considering sector allocations, pricing, distribution prospects, leverage, and finally conclude with our opinion on which one of them offers the most attractive balance of risks versus rewards for income-focused investors.
This Safe 9.1% Yielder Pays Monthly, Trades at a 6% Discount
Sometimes investors just want big monthly income payments without all the worries and risks associated with the stock market. This article covers a Closed-End Fund (“CEF”) that offers an attractive 9.1% yield (paid monthly) by investing in an actively managed portfolio of fixed income securities (bonds). Not only does this fund pay monthly, but it’s never reduced its monthly payments in its 6-year history, and it actually just raised them. Further, it trades at a compelling 6.3% discount to its net asset value. It has other attractive qualities too, such as a conservative amount of leverage, and an attractive management team. This article reviews the risks and rewards, and concludes with our opinion about investing.
Digital Realty: Growing Dividend, Attractive Price
Shares of Digital Realty (DLR) are down 13%, as they’ve recently gotten caught up in the indiscriminate “REIT sell-off” driven largely by macroeconomic noise. And the business offers an attractive investment opportunity for investors seeking steady growing income along with significant long-term price appreciation potential. In particular, this data center REIT has raised its dividend for the past 14 years and is likely to continue to do so given strong industry tailwinds. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion on why Digital Realty is worth considering if you are a long-term income-focused investor.
Ventas: 5.8% Yield, Have You Pulled the Trigger Yet?
Ventas (VTR) is a big-dividend healthcare REIT, and the shares are down 27% in the last 2 months. Near-term headwinds seem to have caused the price to detach from the long-term value, but is there still more pain to come? In this report, we analyze the company’s income profile, current portfolio trends, market dynamics, dividend prospects and finally conclude whether the REIT’s units offer an attractive balance between risks and rewards.
Industrial REIT: 4.4% Yield, Attractive Price Appreciation Potential
This stable, growth-oriented, industrial REIT, is trading at an attractive discount. Not only does it have long-term leases with investment-grade tenants at attractive rentals, but it’s also offering an attractive 4.4% dividend yield—significantly higher than peers. In this report, we analyze the company’s income profile, growth and dividend prospects, and finally conclude with our opinion about investing in this attractive opportunity from a risk-versus-reward perspective.
Brookfield Property REIT: Big 6.9% Yield, But Know the Risks
If you are looking for a healthy, growing dividend, you may be considering Brookfield Property Partners LP (BPY) (and/or Brookfield Property REIT (BPR)—if you prefer to invest in the REIT vehicle). Not only does the dividend appear attractive, but the shares seem to be trading at a significant discount to NAV. However, concerns over its relatively high debt continue to remain an overhang on the stock. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion about whether BPY (and/or BPR) is worth considering for a spot in your long-term income-focused portfolio.