Bonds are boring, right? Not so fast. In the last year, bond yields have risen dramatically. In this report, we share details (opportunities and risks) on 5 different bond strategies (currently yielding 5% to over 13%) for income-focused investors to consider. Let’s get right into it…
Huge Rally: Inflation Slowing, Upside Ahead
With this morning’s inflation numbers coming in lower than expected, the market is up a ton. One data point does not constitute a trend, and no one knows where the market will be later today, next week, next month or even next year. But over the long-term it IS going higher, and right now is a GREAT time to be an investor. This report shares some brief thoughts and ideas on where you should be invested going forward.
100 Dividend-Growth Blue-Chip Stocks: These 4 Worth Considering
Dividend-growth investing has been one of the most underrated strategies in recent years, however the tide is shifting. Specifically, with interest rates rising, and style leadership now shifting from growth to value, dividend-growth stocks are increasingly attractive and many of them are still significantly undervalued by the market. In this report, we share data on over 100 top dividend-growth stocks (those that have raised their dividend for at least 10 consecutive years), and then dive into four specific stocks that are particularly attractive, undervalued and worth considering as long-term staples in a prudently-diversified income-focused portfolio.
Top 10 Big Yields: BDCs, MLPs, REITs and CEFs
The market has been ugly this year. Steep interest rate hikes are not yet slowing inflation, but they are dragging down stock and bond prices, as energy costs continue to soar. And as counterintuitive as it may seem, these conditions are creating select attractive contrarian opportunities, particularly for disciplined high-income investors. In this report, we share data on over 100 big-yield investments (including REITs, MLPs, CEFs and BDCs), and then rank our top 10, starting with 10 and counting down to our top idea.
Top 10 Big-Yield Bond CEFs and BDCs
This has been a terrible year for bonds. As interest rates have risen sharply, bond prices have fallen sharply (and lending in general has been tumultuous). Both Bond Closed-End Funds (“CEFs”) and Business Development Companies (“BDCs”) have been impacted dramatically (i.e. their prices have plummeted as rates have risen). However, this has created select opportunities offering bigger than normal yields and higher than normal price appreciation potential. In this report, we offer an overview of Bond CEF and BDC opportunities, we share important data on over 50 of them, and then we countdown our top 10 big-yield Bond CEFs and BDCs.
Microsoft Earnings: Temporary or Permanent Slowdown?
Energy Stocks: About to Get (More) Volatile
The 7 Healthiest Big-Dividend REITs (By Industry)
Big Dividends: Top 10 Healthiest (6% Yields and Up)
With the market in disarray this year (stemming from inflation, central bank policy changes and now the threat of an ugly recession) a lot of investors are increasingly looking to dividend stocks for safety. With that trend in mind, we are sharing the 10 most “financially healthy” big dividends (yields of 6% and up). We conclude with our strong opinion on how you should, and should not, be playing this current market environment.
No, US Treasuries Do Not Still Yield Close to 0.0%
An almost constant refrain from frustrated income-focused investors and savers alike over the last few years is that interest rates have been close to zero. And now with all the talk of inflation and rising rates, some investors have failed to notice that shorter-term US treasury bills and notes (which are guaranteed by the US government) are now offering somewhat compelling yields. This quick note shares a few important details.
S&P 500: Blood In The Streets, 3 Big Risks, 3 Dividend-Growth Stocks
Rarely has there been a market where both stocks and bonds have fallen so hard at the same time. And if you’ve tried to hide in cash, well inflation is crushing you too. From an investor standpoint, there is blood in the streets, and things can still get much worse, especially considering the precipitous technical level of the S&P 500, the rising S&P 500 Fear Index, the dangerous S&P 500 style reversion trend and the Fed’s extreme focus on battling inflation. In this report, we share our take on the current unsettling position of the S&P 500, three big risks to be aware of, and three dividend-growth stocks worth considering. We conclude with an important takeaway and our strong opinion on investing in this market.
The Dow Enters Bear Market Territory
Testing the June Lows
Futures are pointing to a lower market open today, as the S&P 500 is set to re-test the June low of 3,636. Having closed Friday at 3,693, and with pre-market futures trading around 3,688, technical analysts are left wondering if the market will take out the prior lows—and does that mean there is more pain ahead?
Stay Focused: An Update on The Fed and The Market
On Wednesday, the Fed made clear it will continue to aggressively fight the high inflation that it previously ignored and dismissed as “transitory.” Specifically, the Fed just raised rates by 75bps for the third FOMC meeting in a row, and these hikes continue to harshly punish investment accounts holding both stocks and bonds.
Fed Rate Hikes To Impact Top Big-Dividend BDCs
With the Fed set to raise interest rates another 75 basis points on Wednesday (following its 2-day open market committee meeting which kicks off today), it’s worthwhile to revisit big-dividend BDC and how they are impacted by rising rates. This note shares data on how many of the most popular publicly-traded BDCs are impacted differently by rising rates depending on the structure of their balance sheets (floating-versus-fixed-rate assets and liabilities, as well as leverage levels). We also highlight a few of our favorite BDCs (two we own and one we are considering) that yield 9.1%, 10.0% and 10.2%, respectively.
A Quick Note on Deflation
Yesterday (Tuesday) was the worst day for stocks since mid 2020 (when Covid lockdowns were being announced) because a higher than expected inflation number (CPI) spooked investors. And as the Fed fights aggressively to battle inflation (with interest rate hikes) some pundits believe the Fed is going WAY too far, and deflation is now the bigger risk.
Are You Panicking Over This Morning's CPI Number?
So the much anticipated monthly Consumer Price Index (CPI) inflation number was released this morning. The year-over-year number ticked slightly higher (even though gas prices are down) and the market is selling off hard. Here are four ways to keep the media’s unrelenting sensationalized fearmongering in check as you stay focused on your investment goals.
Top Software Stocks: Massive Growth, Lower Valuations, Inflation Catalysts Ahead
Here are 85 high-growth software stocks, sorted by market cap. As a group they have performed very badly this year (as the fed raises rates to fight inflation), but as you can see there is a very noticeable difference in valuation between the 10 largest and the 10 smallest. This includes price-to-sales ratios (the large caps have much higher multiples), price versus 52-week range (the large caps have fallen a lot less) and more. In this note, we share a few points about this group, and discuss the upcoming CPI number as a catalyst.
S&P 500: 25 Biggest Yields with 10+ Years Dividend Growth
Exciting Long-Term Opportunities: New Market Paradigm
This month’s Blue Harbinger Thinker is now available. In this report, we share our thoughts on current market conditions and how we believe investors should be playing it. We also share updated performance and holdings for our Income Equity and Disciplined Growth portfolios, a few top investment ideas, and then we conclude with a few important takeaways and links to more investment opportunities that we hope you will find useful.
