Just last week, the S&P 500 was trading at 19 times forward earnings, its highest level since 2002. And considering the bull market began almost 11 years ago, it seemed plausible we were due for a pull back (i.e. the usual drumbeat of fear mongering media pundits was increasingly sounding credible). It was as if the market was looking for a reason to sell off, and it seems to have found it in the growing coronavirus concerns (for example, Microsoft just warned it will miss guidance because of coronavirus impacts). And as you can see in the following chart, the sell off has been ugly.
Dow Plunges 1000 Points: Here’s How You Should React
New Options Trade:High Upfront Income, Oversold Large Cap Integrated Energy
This large cap energy stock has been hit from all angles, ranging from low oil prices, to fossil fuel campaign divestment selling pressures, and now a threat of decreased short-term demand from coronavirus impacts. However, it still generates a ton of cash flow, it has a lower break even cost than many peers, and long-term demand simply is not going away (much to the chagrin of many ESG investors). What we’re left with is a big safe dividends, and very high upfront income in the options market courtesy of the recent bout of heightened fear and volatility. We believe the trade highlighted in this article is an attractive one to place today, and into early next week, so long as the underlying stock price doesn’t move dramatically before then.
Gladstone REIT: Monthly 6.9% Yield Worth Considering, +2 Attractive Preferred Series
Gladstone Commercial (GOOD) is a REIT that’s been paying an attractive monthly dividend for 15 consecutive years, and it also offers two series of compelling preferred shares. The company plans to continue on its path of acquisitive growth and has a pipeline of $260 million for the year 2020. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion about why the shares may be worth considering if you are an income-focused investor.
Top 10 Big-Dividend Energy Stocks (6% to 14% Yields)
There are two big reasons energy stocks are down, and they are both creating some very attractive big-dividend investment opportunities. First, new technologies (such as hydraulic fracturing) have increased supply, and brought energy prices sharply lower in the past half-decade. And second, the massive wave of so-called “sustainable” and “ESG” investors (ESG stands for Environmental, Social and Governance) have put truly massive selling pressure on “fossil fuel” stocks. However interestingly, as ultra-billionaire Bill Gates recently
New Options Trade: Battleground Retail REIT, Attractive Upfront Income
There’s usually at least some truth to every fear mongering media narrative, and the talking heads and short sellers have not been kind to retail REITs, as growing e-commerce continues to dramatically change the industry landscape. Yesterday we received news confirming that Simon Property Group (SPG) intends to acquire its smaller “A-Class” property REIT peer Taubman Centers (TCO), and shares of TCO shot up dramatically. There remains heightened uncertainty and volatility in this space, and it is making for an interesting, high-upfront-premium, income-generating options trade opportunity. We believe this is an attractive trade to place today, and potentially tomorrow as long as the share price doesn’t move too dramatically before then.
The Market Will Crash (Eventually): Are You Ready?
Risk Creep is when the market has performed very well for an extended period of time, and you start getting over confident and taking on too much risk that is not consistent with your investment goals. Since the depths of the financial crisis in early 2009, the market has not gone straight up, but it’s been pretty close, and it’s been powerful. This market will eventually come crashing down. Are you ready? Here’s what you can do to prepare…
Horizon BDC: 9% Yield, Paid Monthly, Attractive Growth and Income Combo
Many income-focused investors concentrate their nest eggs in the same subset of market sectors. Considering a few high-income investments in non-traditional high-income sectors can unlock tremendous value and opportunity. Horizon Technology Finance Corporation (HRZN) is a business development company, that pays a big monthly dividend, and offers an attractive combination of growth and value by focusing on development stage companies. In this report, we analyze the company’s income and growth profile, dividend prospects and finally conclude with whether the company’s stock offers an attractive balance between risks and rewards.
Enterprise Products Partners: Best In Class Midstream, Compelling 6.9% Yield, Still No K-1 to C-Corp
Enterprise Products Partners L.P. is an American oil and natural gas midstream service provider with its headquarters in Houston, Texas. In this report, we analyze the company’s business model, income, growth, distribution prospects and finally conclude with our opinion on whether EPD offers an attractive balance between risks and rewards.
Portfolio Rebalance: 3 Sales, 10 New Buys, Updated Tracker Tool
We don’t do it often, but we did on Friday. We’ve rebalanced our portfolio to bring the allocations back on target. And in the process, we’ve sold 3 positions and added 10 new ones. Again, we don’t do it often, and the 10 new buys are securities we’ve written about recently. This report details the rebalance, and we share our updated real-time Portfolio Tracker tool, including new risk monitoring and several new real-time watch lists for REITs, BDCs, Energy Stocks, and more big dividend opportunities.
New Options Trade: Very High Upfront Income, Cyclical LNG Shipping Industry
Shares of this LNG shipping company have gotten crushed in recent weeks due to cyclicality of the business, uncertainty about new International Maritime Organization (“IMO”) Environmental Regulations, and an analyst warning about the risk of a distribution reduction. However, there are reasons to believe the market has dramatically overreacted and the dividend will still be very large and attractive (even after any speculated reduction). Rather than buying the shares outright, the premium income available in the options market is enormous and attractive.
Are You Ready for Election-Year Fearmongering, Volatility?
If it’s not painfully obvious yet, it will be soon—2020 is an election year, so get ready to be inundated with political ads, media fearmongering and probably a lot more market volatility, particularly in some areas of the market more than others. So what can an investor do to prepare? Two things in particular stand out…
Healthy 10.8% Yield: Political-Hot-Air-Driven Sell Off, Attractive Entry Point
Political rhetoric has created an attractive buying opportunity in this healthy 10.8% dividend yield company. The shares have sold off hard despite solid cash flows and a high demand business with long-term visibility. The rhetoric has heated up heading into this year’s election cycle, but this is a story we’ve seen before whereby the shares quickly rebounded following the elections. If you like big dividends and attractive buying opportunities, this one is worth considering.
Phillips 66: Powerful Dividend Growth, Significantly Undervalued, So What Gives?
Phillips 66 (PSX) has a diversified business model that reduces earnings volatility and delivers steady cash flows. As such, it has been able to raise its dividend every year for the last seven consecutive years. The stock offers a solid dividend yield of 3.4% along with a high probability of dividend increases and price appreciation. In this article, we dig deeper to ascertain the sustainability of dividends and also the company’s growth prospects. We review the health of the business, cash flow position, balance sheet flexibility, valuation, risks, dividend safety, and conclude with our opinion about why PSX may be worth considering if you are a long-term income-focused investor.
Simon Property Group: Enticing 5.6% Yield, Pristine Balance Sheet
Simon Property Group (SPG) is a retail REIT, with a pristine balance sheet, and a consistent history of growing revenue and dividends. However, growth in revenue has slowed marginally due to a rise in retail bankruptcies (online shopping is disrupting traditional retail). This article reviews the business, the enticing 5.6% dividend yield, the valuation, the risks, and concludes with our opinion about investing.
Portfolio Tracker Tool Update
This week’s Weekly reviews the latest iteration of our portfolio tracker tool. It lists holdings by portfolio with real time position pricing. It also has “buy under” prices, position performance and a variety of additional bells and whistles. It is designed for your convenience. The link to the Portfolio Tracker Tool is Below.
This Data Center REIT: Healthy Growing Dividend, Buyout Is Coming…
This particular data center REIT offers an attractive investment opportunity for investors seeking steady growing dividend income (it’s raised the dividend 7 years straight) along with the strong potential for capital gains (the growth outlook is attractive) and a likely buyout (it will get acquired at a premium price…a good thing) in the relatively near future. A significant push into Europe has been a drag on margins which remains a near term concern (i.e. a buying opportunity!). This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion about why this particular REIT is worth considering if you are an income-focused investor.
GasLog Partners: Solid 14.1% Yield, Cyclical Sector, Preferreds Yield 8.5%
GasLog Partners has a history of paying and raising distributions consistently despite being part of the highly cyclical LNG shipping industry. The 14.2% distribution yield on the common shares is interesting (and so are the preferred shares), especially considering the likelihood of price appreciation. In this article, we review the health of the business, cash flow position, balance sheet flexibility, valuation, risks, dividend safety, and conclude with our opinion about investing in GasLog.
New Options Trade: Big Upfront Income, Big-Dividend Blue Chip, Shortsighted Fear
People are afraid of what they don’t know, and even though this company is a well-proven large-cap blue chip, investors are unsure of it because it recently separated into a standalone company from another large cap blue chip. And because of this uncertainty, combined with near-term pricing pressures, investors are afraid. And we like that because it’s creating an attractive income opportunity in a big-dividend blue chip company with lots of cash that it is using to support the dividend, buyback shares and support the ongoing long-term success of the business. We believe this is an attractive trade to place today, and potentially over the next few trading days as long as the share price doesn’t move too dramatically before then.
Another Successful Year In The Books, Introducing "Buy Under" Prices
2019 was another successful year. Our “Income via Growth” strategy finished the year up 51.6%, “Income Equity” added over 28% (and yields 5.9%), and our “Alternative Fixed Income” strategy currently yields an impressive 7.5% (with relatively very low risk). We’re also kicking off 2020 by adding a “Buy Under” price for every position in every portfolio to help readers monitor positions more closely and more easily.