The market has been especially ugly for high-growth stocks recently as the pandemic-trade pendulum now swings too far in the opposite direction. But that doesn’t mean all growth stocks are ugly. Quite the contrary. The attractive growth stock we review in this report offers a compelling high growth rate, a large total addressable market opportunity and an attractive valuation. Plus, it is supported by high recurring revenues, high customer retention and important research-and-development spending plus a strong sales team.
A Return to Office Play: 3.1% Yield REIT
The office REIT we review in this report is attractive for a variety of reasons, including its healthy dividend (it’s well covered and has been paid for 25 consecutive years), favorable geographic economics, ongoing growth trajectory, and the trend for companies to bring employees back to the office. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with some final thoughts worth considering if you are a long-term income-focused investor.
**New Trades: 2 Sells, Quick Update**
A Dividend Growth Monster, On Sale
When investors think of “big dividends” their minds often gravitate to stocks with the highest dividend yields. However, “yield on cost” can be an extremely important metric for long-term income-focused investors because it can reveal massive dividend opportunities flying under the radar. For example, the attractive undervalued dividend stock we review in this article doesn’t have the biggest current yield, but if you look backwards and forwards, the yield on cost is truly massive and it has the trajectory to continue growing dramatically larger.
Interest Rate Protection: Attractive 6.9% Yield, Floating-Rate CEF
If you are an income-focused investor, you’re likely concerned about rising inflation because it can eat away at the value of your next egg and the buying power of your income. This article reviews an attractive closed-end fund (“CEF”) that provides a big monthly income payment, plus some protection against rising interest rates and inflation through its floating rate income (i.e. as rates go up, the payments this fund provides also go up). We provide a quick overview of the fund, review its nuts and bolts through 6 important charts, and then conclude with our opinion on investing.
How Big Will the Sell Off Be?
A Powerful Clean-Energy Megatrend Play
The company we review in this report is known for manufacturing power generators (and related products) but has recently opened up significant growth opportunities in the “clean energy” and “smart grid 2.0” spaces. It has also recently been benefiting from increased demand for standby home generators (due to frequent power outages in the US as a result of harsh weather conditions). As an investment, the company’s comprehensive set of offerings is uniquely positioned to benefit from the large market opportunity ahead. In this report, we review the business model, the market opportunity, financials, valuation, risks, and then conclude with our opinion on investing.
Bond CEF: 7.2% Yield, Paid Monthly, Discounted Price
With inflation on the rise, and interest rates poised to move higher, does it still make sense to own bonds? Depending on your situation, the answer is a resounding, yes! And this article reviews a compelling closed-end fund (“CEF”) that owns attractive bonds, trades at a discounted price, and offers a juicy 7.2% yield—paid monthly. We currently own shares.
Top 10 Big-Dividend REITs: Inflation is Real
In case you haven’t noticed, rising inflation has been dominating economic headlines lately. The big argument is whether the recent rise in inflation is transitory (and thereby simply a short-term phenomenon following the pandemic lockdowns), or whether it is long-term (thereby making it a much bigger risk to investors). Make no mistake, inflation is real (its the hidden thief in the night that reduces the buying power of your nest egg), and if you park your money in a savings account, its going to be worth less and less every year (especially thanks to our low interest rate environment and rising inflation). In this report, we count down our ranking of top 10 big-dividend REITs (4.0% to over 10.0% yields).
Omega Is In Trouble: 4 Pros, 4 Cons, 1 Conclusion
Skilled Nursing Facility (“SNF”) REIT, Omega Healthcare Investors (OHI) announced earnings on Thursday, and the business is in trouble. Despite Omega’s long history of paying big dividends (it currently yields 9.0%), it is currently facing more significant challenges now than at any other time in its operating history. In this report, we review the business, consider four pros and four cons, and then conclude with our opinion about investing.
TRUTH Social: To $1 Trillion in 10 Years?
Twenty-two year old Mark Zuckerberg was widely proclaimed foolish for not selling Facebook for $1 billion in 2006. It’s now worth around $1 trillion. There are but two major challenges for Trump Media & Technology Group (“TMTG”) (DWAC), led initially by TRUTH Social, in growing its market value to $1 trillion within the next decade, and one of them is already all but solved. In this article, we review the TMTG business model, the market opportunity, the two big challenges that must be overcome, and why 10 years from now your pocketbook may deeply regret if you don’t start accumulating shares this year.
Realty Income: A 4.0% Yield, Monthly Pay, Dividend Juggernaut
Realty Income (O) is nicknamed “The Monthly Dividend Company” for good reason. This REIT yields 4.0% and pays dividends monthly. In fact, it has increased its dividend in 95 consecutive quarters and it has made 614 consecutive monthly dividend payments to investors. In this report, we review the business, the upcoming merger/spin-off, dividend safety, valuation, and risks, and then conclude with our opinion on investing.
A Rare 8% Yield BDC Offering Dividend Growth, Equity Upside: Oaktree Specialty Lending
While other business development companies (“BDCs”) were cutting their dividends as a result of the pandemic, Oaktree Specialty Lending Corp (OCSL) not only maintained theirs, but has also significantly increased it in each of the past five quarters. Moreover, the shares are trading at an attractive price relative to net asset value (“NAV”). In this report, we review the health of the business, the highly-experienced management team, its balance sheet, liquidity, dividend safety, valuation and risks. We conclude with our opinion on investing.
Experiential REIT: Strong 5% Yield, Attractive Valuation
If you are an income-focused value investor, the REIT we review in this report is worth considering. It’s a triple net lease REIT, with a well-covered 5.0% dividend yield and the potential for ongoing share price appreciation. It’s been largely unfazed by pandemic challenges, and has actually been wisely increasing the growth trajectory of its business in a space with high barriers to entry. In this report we review the business, dividend safety, valuation and risks, and then conclude with our opinion on investing.
Top 8 Big-Dividend REITs, BDCs, CEFs, MLPs
Healthcare Stock: Tremendous Upside Potential
This article reviews a biotechnology (healthcare) company that develops non-invasive genomics tests used to diagnose skin cancer. The product is considered superior to current test procedures, and revenues are growing rapidly. Further, the company has three additional products (still in development phase) with even larger total addressable market opportunities. Encouragingly, the company is working diligently to expand product usage by educating the medical community and by reaching out to more insurers to cover it. In this report, we analyze the business model, product advantages, market opportunity, competitive positioning, valuation, risks, and then conclude with our opinion on investing.
PIMCO CEF: The Big Premium, I'll Be Back, 10.1% Yield
Often an income-investor favorite, 2021 continues to be an interesting year for PIMCO’s lineup of big-distribution, monthly-pay, fixed-income CEFs. We’ve seen the launch of a new winner, a distribution cut from a perennial favorite, and now an imminent merger and sharply declining premiums for three classic PIMCO funds. In this report, we focus on one in particular, its 10.1% monthly distribution and its significantly shrinking price premium (versus NAV) as the big merger looms imminent. And regarding its once large premium, it is our opinion, as Arnold Schwarzenegger’s Terminator character once said, I’ll be back! We conclude with some important takeaways on who might want to invest and how.
Healthcare REIT: 5.5% Yield, Healthy Growth
The 5.5% dividend yield healthcare REIT we review in this report is attractive. Its dividend is well covered (82% payout ratio) and is likely to grow (considering this year’s double-digit FFO per share growth expectation). We also like the company’s track record of delivering normalized FFO per share growth of nearly 9% over the last 10 years. In this report, we review the health of the business, valuation, risks, dividend safety, and then conclude with our opinion on investing.
Top 10 Fintech Stocks: Secular Behemoths in the Making
Financial technology (or “fintech”) increasingly underpins the global economy. Ranging from mobile banking, investing, borrowing and cryptocurrency, fintech has massive opportunity for growth as it increasingly threatens big banks and the financial services industry status quo. From an investment standpoint, the best opportunities for dramatic long-term compound growth usually come from disruptive innovation (such as the industrial revolution, the advent of the internet and now fintech). In this report we countdown our top 10 fintech stocks.
Digital Payments: Robust Cash Flow, High Growth
The “fintech” company we review in this report will continue to benefit from long-term secular growth in digital payments. It delivers powerful cash flow, strong (and improving) margins and a massive total addressable market (TAM) opportunity. And it has an impressive two-sided network. In this report, we review the business, growth prospects, valuation and risks, and then conclude with our opinion on investing.