Income-focused investors love big-yield bond CEFs because of their large distributions payments, often paid monthly. But if you’ve been following along, you know most of them (i.e. the popular PIMCO and BlackRock bond CEFs) have been feeling a lot of pain over the last year (because as rates have gone up, bond prices have gone down). Granted some investors don’t care about price as long as the income keeps rolling in, but it really does matter. In this report, we provide an update on three popular Bond CEFs (two from PIMCO and one from BlackRock), and share our views on whether the interest rate environment is signaling an “all clear” sign. We conclude with our strong opinion on investing.
Lithium Producer: 40 Top Stocks, These 4 Worth Considering
There are many ways to identify top investment opportunities, and one strategy is to screen the universe based on important fundamental metrics and then dig deeper into the names that look attractive. In this report, we share data on 40+ high-profit-margin and high-sales-growth stocks, and then dig deeper into four that are particularly attractive. We have a special focus on a new lithium producer, including a review of its business, its growth potential, its valuation and risks. We conclude with our strong opinion about investing in high-profit-margin and high-sales-growth stocks in the current challenging macroeconomic environment.
This AI-ML Stock: Massive Sticky Secular Growth
The company we review in this report is already benefiting from the massive secular growth in Artificial Intelligence (“AI”) and Machine Learning (“ML”). And it is positioned to keep benefiting massively in the years ahead thanks to its leading solutions, innovation, sticky customer base and very strong balance sheet. This one was loved (during the pandemic bubble) then hated (when the bubble burst), but the business has only been getting stronger and the shares are still inexpensive relative to where we expect them to be in five years and beyond. In this report, we review the business, the growth, the opportunity, the valuation and the risks. We are currently long these shares with no intention of selling.
Is Verizon 7.2% Dividend Yield Worth the Cost?
Verizon’s 7.2% dividend yield is increasingly tempting to many income-focused investors. However, many of those same investors are reminded of AT&T—another telecom that was recently forced to cut its big dividend as the payout got way ahead of the company’s cash flows. In this report, we review Verizon’s business, dividend safety, valuation and risks (including the new Amazon Prime threat), and then conclude with our opinion on investing.
Top Dividend Dogs of the Dow: This Healthcare Stock is Attractive
“Dogs of the Dow” is an investment strategy that essentially involves investing in the 10 Dow Jones stocks with the highest dividend yields. In this report, we review the strategy and then dive into one name from the list that is particularly attractive. Specifically, we review a healthcare sector Dog of the Dow with a compelling 3.8% dividend yield and a low stock price as compared to its value. We conclude with our opinion on investing.
USA: Top 20 Big-Yield CEFs, Discount-Premium Edition
The Liberty All-Star Equity Fund (USA) is a popular big-yield closed-end fund (“CEF”). It offers an annual distribution yield equal to 10% of its net asset value (“NAV”) with 2.5% paid quarterly. And it currently trades at a discount to its NAV (it previously traded at a large premium). In this report, we review USA in detail, and then compare it to 20 other popular big-yield CEFs from varying categories (including some important guidelines on when it might be okay to purchase a CEF at a premium to NAV and when it might not be). We conclude with our strong opinion about investing in USA and a few other CEFs in particular, especially considering their current price premium-versus-discount dynamics.
DNP Select Income Fund: 7.6% Yield, 23.2% Premium to NAV
The DNP Select Income Fund (DNP) is an income investor favorite, offering a steady monthly distribution (current yield: 7.6%) by investing in utility sector stocks and investment grade bonds (both known for safety and stability). However, the shares currently trade at a large 23.2% premium to the fund’s net asset value (“NAV”). In this report, we review the strategy, the leverage, the distribution, the distribution reinvestment plan and the performance. We conclude with our opinion on whether this fund is worth considering for investment, or not.
Nvidia +17,347%: 40 New Top Growth Stocks Worth Considering
I wrote a positive report about Nvidia (NVDA) in 2009 (see image below), and since then the shares are up over 17,347%. I believe Nvidia shares can still go dramatically higher from here (driven by momentum and investor exuberance about artificial intelligence, in particular), but based on valuation, there are other (newer and smaller) high-growth stocks that are also worth considering (such as the 40 included in the detailed data table in this report). After reviewing Nvidia’s business and current valuation, we highlight a couple names from the list that are also particularly attractive, and then conclude with our strong opinion on investing.
Top 10 Growth Stocks: Forget Mega Caps
It takes a special mindset (and a certain financial fortitude) to be a long-term growth investor. But if you can persevere through years of lumpy financial results, whipsawing volatility and the constant drumbeat of naysayers, you could end up getting in early on the next mega-cap growth stock (and enjoying all the powerful long-term gains that go along with it). In this report, we rank our top 10 “non-mega-cap” growth stocks, starting with #10 and counting down to our top ideas.
Top 20 Dividend Stocks, Ranked: Big Yields, Big Opportunities
In this report, we rank our top 20 dividend stocks. The rankings include a split between opportunities with very big yields (yields of 7.0% and up) and very attractive total returns (i.e. solid dividend payments plus significant price appreciation potential). We also highlight 7 dividend market themes that are critically important in the current environment (including: (1) BDCs > Banks, (2) Midstream Stocks > MLPs, (3) A Bird in Hand > Two in the Bush, (4) Falling Rates > Rising Rates, (5) Bond CEFs > Bonds, (6) Contrarian Income > Herd Income, and (7) Value vs Growth). Without further ado, let’s get into the themes and the rankings (starting with #20 and counting down to our top ideas).
SoFi: Supreme Court Decision, Student Loan Repercussions
SoFi recently sued the Biden Administration, arguing there is no legal authority to continue student loan forbearance. However, within the next few weeks, the Supreme Court is widely expected to rule against the Biden Administration’s student loan forgiveness program, which will likely end forbearance within 60 days. In this report, we review SoFi’s business and the effects of fear (from the student loan situation, combined with recent banking sector distress caused by rapidly rising interest rates) on the company’s current valuation. After discussing specific risks in more detail, we conclude with our strong opinion on investing in SoFi.
Attractive Long-Term Solar Play, Ample Room for Growth
The company we review in this report is a leading manufacturer of semiconductor-based microinverters, as well as batteries, EV chargers, and other storage solutions. The company is well positioned given the strong investment activity in the clean energy space globally as well as its innovative microinverter technology. The company is actively diversifying its product offerings and expanding into new markets, while also focusing on continuous technological advancements to maintain a strong presence in the industry. In this report, we analyze the company’s business model, its market opportunity, financials, valuations, risks, and finally, conclude with our opinion on whether an investment in the shares offers an attractive balance between risks and rewards.
Infrastructure CEF: 8.2% Yield, Discounted Price
The closed-end fund (“CEF”) we review in this report is compelling for a variety of reasons, including its big monthly distributions, discounted price and attractive investment strategy (it invests in infrastructure securities, both stocks and bonds). In this report, we review the important details and risks that investors should consider, and then conclude with our strong opinion on investing.
This Lithium Battery Stock: Massive Growth Potential for Patient Investors
In this report, we review a manufacturer of advanced lithium-ion batteries. This early-stage public company is well-positioned to benefit from growing demand, including mobile, Internet of Things (IoT) and electric vehicles. Key differentiators include its energy density advantage (achieved through design and architecture choices) and silicon anode technology. It also addresses key safety concerns. We analyze the business model, market opportunity, financials, valuation and risks. We conclude with our opinion on investing.
Top 10 Dividend Stocks (Income Equity Portfolio) May Update
If you like disciplined long-term total returns and compound growth (i.e. making money) through a combination of healthy dividend growth and long-term share price appreciation—this list may be for you. These aren’t the biggest yielding stocks, and they’re not the most rapidly growing business. But these are healthy, growing, blue chip companies, that can help a lot of people sleep well at night through a combination of impressive dividend growth and powerful share price appreciation potential (i.e. they’re trading at attractively discounted prices relative to their long-term value).
Top 10 “High Income NOW” Opportunities: May Update
As fear of more bank defaults climbed over the last month, so has the yield in our High Income NOW portfolio, currently sitting at 10.2%. There was a “flight to quality” in dividend blue chips, while short-term treasury yields climbed (the 6-month currently yields over 5%), keeping the yield curve very inverted (a sign of looming recession) while the Fed may have just completed its final rate hike of 2023. In this report, we countdown our new top 10 “High Income NOW” opportunities (the rankings have changed) as we position the strategy for more big income payments ahead.
Attractive 11.7% Yield Monthly-Pay Bond CEF
If you are seeking big steady income, from a top-shelf manager, that currently trades at a discount to NAV, and may be set for dramatic price appreciation heading into the end of 2023 (as fed rate hikes peak and then are expected to reverse), the 11.7% annual yield (monthly pay) closed-end fund (“CEF”) we review in this report is worth considering.
5 Contrarian Dividend Stocks Set to Climb
The market has been climbing a wall of worry this year and the economy is teetering on an ugly recession. The fact that the yield curve is steeply inverted (see chart below) has contributed to recent bank failures (Silicon Valley and First Republic), and more things in the economy are going to break. That said, the stock market tends to recover well before the recession is over. In this report, we share five attractive dividend stocks that are particularly compelling from a contrarian standpoint considering the share prices are down, the dividends remain strong, and we expect both (share prices and dividends) to get even significantly better over time.
US Bancorp: 5.6% Yield, 3 Big Risks (Short Seller Edition)
So far this year, US Bancorp (USB) is one of the worst performing stocks in the S&P 500 (it’s down over 20%), and it now offers one of the highest dividend yields (5.6%). And a lot of income-focused contrarian investors are increasingly tempted, especially considering the bank has raised its big dividend for the last twelve consecutive years in a row. After reviewing US Bancorp and its current valuation, we consider three big risks to investors (with a regulatory-induced dividend cut perhaps the biggest, as described by a recent HoldCo short-seller report), and then conclude with our strong opinion on investing.
100 Hated Stocks: These 4 Worth Considering
If you like to purchase top businesses when their stocks are out of favor with the market, you may find this report interesting. We share data on 100 hated stocks divided into four very different groups: (1) Top Growth Stocks, Down Big; (2) Dividend Growth Stocks, On Sale; (3) Pandemic-Era IPOs, Now; (4) Big Yield CEFs, Discounted Prices. We then select (and review) one particularly attractive opportunity from each of the four groups. We conclude with a critically important takeaway for investors to keep in mind.