These are the stocks we actually own in our Income Equity Portfolio. The portfolio is best for income-focused investors, and it has been constructed in accordance with the caveats we have described in parts one and two of this article (as well as a lot of other considerations too). The following table shows the number of holdings in the strategy along with their weights and dividend yields (the names and tickers are reserved for members only). This report also provides a brief August performance review and future outlook for all Blue Harbinger holdings across all three strategies (Income Equity, Disciplined Growth, and Smart Beta).
New Purchase and Portfolio Update
We made a new purchase in our Disciplined Growth strategy on Friday, and this week’s Weekly provides more details on the purchase. We also provide an updated holdings list with all of the details for the Disciplined Growth strategy. This week’s members-only new investment idea is the stock we purchased. We reported on this stock last week too, so this week’s “part 2” includes more details on why we believe it’s an exceptional investment opportunity right now.
New Purchase: Emerson Electric (EMR) “Part 2”
As we reported on Friday afternoon (see also Emerson Electric Purchase “Part 1”) the new stock we purchased is Emerson Electric (EMR). To some, this may seem like a boring company that has not performed well over the last two years. However, in our contrarian view, this is a tremendous time to buy. Here's why...
**New Purchase – Blue Harbinger Update**
We are excited to share a new purchase in our Blue Harbinger Disciplined Growth strategy. Members can view the details by logging in now. This is a long-term buy which means we plan to own the stock for many years to come (assuming it continues to execute on its strategy). We believe it is trading at a significant discount to its underlying value, plus it offers an attractive 3.5% dividend yield.
Top 3 "Dividend Aristocrats" Worth Considering
This week’s Weekly is a continuation of our free report titled "5 Dividend Aristocrats Worth Considering," but in this member-only version we have included the Top 3. We currently own two of the Top 3 stocks on the list. Also, one of the stocks is this week’s members-only new investment idea (it’s an attractive big-dividend Industrial company that’s gotten even more attractive this month and this last week following some very interesting news).
Emerson Electric: Attractive Business, Price & Dividend
Emerson Electric (EMR) is a big dividend (3.6%) industrial engineering company that is currently trading at an attractive price. The stock has recently under-performed the market for a variety of reasons, but it continues to easily maintain its “dividend aristocrat” status. We believe Emerson has significant growth prospects ahead, and current market conditions have created a very attractive buying opportunity for long-term investors.
Top 5 Big-Yield Low-Risk Opportunities
CVR Partners: Big Yield, Big Upside
We like CVR Partners (UAN) because we believe the market is overly pessimistic, and the company has better days ahead. Not only will it benefit as the overall global population grows, but it will benefit as it rebounds from its current low point in its business cycle. We believe the recent price decline makes now an attractive opportunity for income-focused investors to pick up this big 9.9% variable distribution yield.
Our Top 2 Big-Yield Fertilizers, and More
This week’s Blue Harbinger Weekly is a continuation of our public report titled “Top 6 Big-Yield Fertilizers Worth Considering” except in this members-only version we disclose and review the Top 2. In addition, we provide a brief update on our utility stock holding, news regarding its upcoming merger, and our expected double digit return over the next 9 months (or sooner).
Our 28 Favorite Stocks: July Performance Review & Outlook
In this week’s Blue Harbinger Weekly, we provide a brief performance review and outlook for each of the 28 holdings across our Blue Harbinger strategies. We also provide access to a members-only report on our “Top 3 Covered Call Stocks.” Lastly, you’ll notice we’ve updated performance though the end of July, and all three Blue Harbinger strategies continue to significantly outperform.
Our Top 3 Covered Call Stocks
This members-only post highlights our top 3 covered call stocks. Essentially, we believe writing covered calls on these three stocks is a "win-win" opportunity for income investors because if they get called you will collect the proceeds from the sale (plus the premium you will have already received), and if they don't get called then you're left holding a very attractive long-term investment that pays a big safe dividend.
Two Attractive Buying Opportunities
This week’s Weekly reviews two attractive opportunities. First, a very profitable, dividend paying, consumer goods company that was down big on Friday after the market overreacted to disappointing earnings. Second, an undervalued energy-related company that we own in our Income Equity strategy. It pays a big growing dividend, and it announces earnings this upcoming week.
Autoliv: Attractive Growth, Valuation and Dividend
Autoliv (the world's largest automotive safety supplier) was down 8.5% on Friday after announcing disappointing earnings. However, the company is still very profitable, it has vast growth potential, and its shares are undervalued by the market in our view. Additionally, the company’s dividend yield just rose to 2.23% which is above average compared to the S&P 500’s dividend yield of only 2.04%.
Phillips 66: Big Dividend, Attractive Long-Term Opportunity
Phillips 66 has recently under-performed the market because investors are too focused on the short-term crack spread impacts, rather than on the long-term growth into chemicals and midstream businesses. It is also a cash generation machine with a big growing dividend. Warren Buffett recently increased his ownership to nearly 15%. It announces earnings this Friday (7/29). We own it in our Income Equity strategy.
Big Yield Roadmap: The Ones We Actually Own
This week’s Weekly is a continuation of our public report titled Big Yield Roadmap. However, in this members-only version we provide specific details on stocks we actually own in each of the big dividend categories (so far, we haven’t mentioned any of these stocks publicly). We also provide information on additional big-dividend stocks that are on our members-only watch list. Lastly, this week’s new investment idea is a deep dive into one of the healthcare REITs we have been considering.
Ventas: Adding this Big Dividend REIT to our Watch List
Ventas (VTR) is a healthcare REIT with a diversified investment portfolio, an attractive dividend yield (4.1%), and the winds of an enormous demographic trend at its back. The dividend is very safe, and despite the recent strong price performance we believe this REIT has many years of continued growth ahead.
Why this Nice Dividend, Engineering Company, Could Rise 70%
Did you make the same investment mistake as so many others? As the S&P 500 sits just a feather below its all-time high, did you miss the rally because you got scared and sold your stocks as soon as the Brexit news hit two weeks ago? This week’s Weekly provides a brief reminder on the importance of sticking to your long-term strategy. And we also review our latest new investment idea: a profitable, high-margin, growing, industrial engineering company that pays a big dividend and trades at a very attractive price.
TE Connectivity: Big Dividend, Attractive Price
TE Connectivity is a profitable, high-margin, growing, industrial engineering company that pays a big dividend and the stock trades at an attractive price. Further, the stock still has not recovered from the recent Brexit-induced volatility relative to the rest of the market. We don't currently own shares in any of of Blue Harbinger strategies, but we've placed it high on our "watch list."
Our Top 3 Big Bank Ideas: Impressive Dividends, Price Appreciation Potential
Many dividend investors are overlooking these three obvious opportunities. It’s time to acknowledge the financial crisis is in the rear view mirror for some banks. In particular, we highlight three big bank stocks that have big growing dividends, very low risk, and the potential for very big price appreciation. We own two of them, and we’re considering purchasing the third.