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.
100 Tempting Big Yields: These 4 Worth Considering
If you are an income-focused investor, there are many big-yield strategies to choose from. However, not all of them may be right for you. In this report, we share updated data on a wide variety of big-yield opportunities, including over 100 big-yield REITs, CEFs, BDCs and more. Then we highlight four names from the list that are particularly interesting and worth considering. Specifically, we highlight three tempting big-yield opportunities that we are currently avoiding, followed by one very attractive big-yielder that we currently own.
US Bancorp: 5.7% Yield, Shares Down Big
Among S&P 100 stocks (see table below), US Bancorp (USB) has one of the biggest dividend yields, but some of the worst year-to-date performance. Like most banks, USB shares sold off hard when the recent Silicon Valley Bank failure was announced, but unlike most banks—shares of USB have NOT subsequently rebounded. In this quick note, we review USB’s recent earnings announcement and the recent USB short-seller report (from HoldCo Asset Management). We conclude with our opinion on whether it’s time to buy US Bank or if it’s time to sell.
Owl Rock: 40 Big-Yield BDCs, Compared
With BDC earnings season set to kick off this week (starting with Ares Capital on Tuesday pre-market), we’ll also be watching Owl Rock closely (set to announce two weeks later). One key metric to watch will be book value as the economy heads towards recession and write-downs could start to more significantly detract from the benefits of rising interest rates. This quick note shares data on 40 big-yield BDC, and digs into Owl Rock in more detail.
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.
April Portfolio Updates: New Trades, Rebalancing
We’ve updated the holdings and “buy under” prices for all three of our top idea portfolios for April, and all the details can be accessed using the links below. We do NOT trade often (we’re long-term investors), but we do have a small handful of trades to update you on. We believe the changes position the portfolios for more long-term success.
Bond CEFs: Prices, Premiums and Interest Rates
A quick note to share some updated data and commentary on a handful of popular big-yield bond CEFs from PIMCO and BlackRock. This note may be of particular interest to those following our High Income NOW portfolio. For starters, here is a look at the latest movement in premiums and discounts (versus NAV).
Two (2) New Buys: 1 Income Equity, 1 (More) Disciplined Growth
We do NOT buy or sell often, but this is just a quick update to let readers know we have made two more new purchases (the second and third new buys this week). One in our Income Equity Portfolio and now a second buy this week in our Disciplined Growth Portfolio. We’ll be completing our monthly portfolio tracker sheet updates shortly after April begins, but wanted to let readers know right away of these two additional new purchases.
100 High-Growth Stocks: Contrarian Interest Rising
It’s no secret growth got slaughtered (as the pandemic bubble burst), and TONS of Fed balance sheet unwinding remains (see chart), but rate hikes are slowing (ending?), and valuation multiples much lower on high growth stocks. Here is data on 100 top growth stocks with at least 20% revenue growth (this year and next).
Big-Dividends Report: 100 BDCs, REITs, Down Big
The Fed hiked rates, the FDIC continued to bail out depositors and select big-yield opportunities became decidedly more interesting. Specifically, many big-dividend REITs and BDCs are down big this year; and some of them are actually attractive. In this report, we share updated data on over 100 big-yield REITs and BDCs, and then conclude with information about our top 27 favorite big yielders, ranked.
Update: 40 Big-Yield BDCs, Silicon Valley Bank Warning
As mentioned in our previous note, BDCs are like banks, only riskier. Not only are BDCs facing increasing stress due to slowing economic growth and increasing interest rates (i.e. the tradeoff between higher floating rate interest payments received and higher default risk on loans), but some BDCs (such as those focused on venture capital) are dramatically over-exposed to fallout from the Silicon Valley Bank mess. In this note, we share updated data on 40 BDCs, and then dive deeper into 4 specific venture-capital-focused BDCs—and how we expect them to fare in light of the SVB mess—buyer beware!
Top 25 Big-Yield Funds, Ranked (6.0% to 12.0%+ Yields), ETF and CEF Edition
If you like your investments to pay you high income now—this report may be right for you. We countdown our top 25 big-yield Exchange Traded Funds (“ETFs”) and Closed-End Funds (“CEFs”) with yields of 6.0% to over 12.0%, and carefully highlighting the important nuances of these two distinct investment vehicles, while also avoiding the gimmicky yield traps that sadly dupe so many unsuspecting investors. We start with some high-level advantages and disadvantages of ETFs versus CEFs, then rank our top big-yield funds, starting with #25 and counting down to our top ideas.
Big-Yield BDC Update: 2 Contrarian Opportunities Worth Considering
Big-yield BDCs have posted particularly strong gains so far in 2023. However, attractive opportunities remain considering prices are still down from 2022, and the recession that’s already priced into the market may be milder than expected. In this quick note, we share updated data on over 40 BDCs, and then quickly highlight 2 high-yielders that present particularly attractive contrarian opportunities.
Top 10 Big-Yield CEFs, Ranked (6.0% to +11.0% Yields)
Close-End Funds (“CEFs”) are often an income-investor favorite thanks to their big yields (often 6.0% to 11.0%, or higher) which are frequently paid monthly. In this report, we share updated data on over 100 big-yield CEFs (sorted by style, and including a variety of important data points), and then we countdown our top 10 big-yield CEFs (starting with #10 and finishing with our top ideas) for you to consider.
Top 20 Dividend-Growth Stocks, Ranked
In this report, we countdown our top 20 dividend-growth stocks. These may not be the biggest current dividend yields (no yield traps here!), but they present some of the best and biggest long-term income opportunities based on their impressive trajectories of dividend growth (all have at least 10 consecutive years of dividend increases) and ongoing price appreciation potential. We’ve selected these 20 from a list of over 150 top dividend-growth stocks (the 150 stock list is included in this report, along with lots of important data on each of the 150 stocks for your consideration). We also explain the important concept of “yield on cost,” and explain why dividend-growth stocks are particularly compelling right now (i.e. macro conditions). Finally, we rank our top 20, providing explanations for each, starting with #20 and counting down to our top ideas.
Top 10 Dividend Growth Stocks - Down Big
In this report, we rank our top 10 dividend-growth stocks that have recently sold off hard. We include stocks that have increased their dividend for at least 10 years in a row, and we have a special focus on the concept of “Yield on Cost” whereby stocks that appear to offer mediocre current yields actually end up paying much more income over the long term. We also share comparative data on over 100 top dividend growth stocks, followed by an explanation on why dividend growth investing is particularly attractive right now (i.e. macroeconomic conditions). After counting down our top 10 dividend growth stocks (starting with #10 and finishing with our top ideas), we conclude with an important takeaway for investors to consider.
Top 10 Big-Yields: CEFs, REITs, BDCs and MLPs
In this report, we share data on over 100 big-yield investments, including CEFs, REITs, BDCs and MLPs. We provide high-level information and market commentary on each category, and then countdown our top 10 most attractive (with yields ranging from 5% to well over 10%), starting with #10 and finishing with our top ideas.
2023 Outlook: 10 Investments Worth Considering
2022 was a very different year for investors. The stock and bond markets were both down significantly, and as monetary policies shifted from dovish towards hawkish—and fiscal pandemic stimulus evaporated—investors were left with the giant sucking sound of high inflation. And making matters worse, central bankers pushed the economy towards recession by dramatically hiking interest rates in an effort to stifle the high inflation problem they helped create. Further still, the dramatic shift in markets may just be starting. In this report, we review what looks to be the beginning of a new market paradigm and review 10 top investment ideas that investors may want to consider going forward.
Top 10 Big-Dividend Healthcare Stocks
Healthcare is a diverse sector. And recent performance has been wide ranging (see data below). This is creating select, highly-attractive big-dividend opportunities ranging from individual pharmaceutical stocks, to healthcare-focused CEFs and even “healthcare” REITs, to name just a few. In this report, we rank our top 10 big-dividend healthcare opportunities, starting with number 10 and counting down to our top ideas.