There are around 50 RIETs (traded on NYSE and Nasdaq) that currently offer at least a 5% dividend yield. Here they are sorted by year-to-date performance. While most are down a lot this year, on average the group is down around 12%—about the same as the S&P 500. In particular, there are a few on the list that are worth taking a closer look.
Morning Tea Leaves: Interest Rates Still Driving Markets
Is The Market Ahead of Itself? A few Data Points to Consider
Here is a look at the S&P 500 (including its 20-, 50- and 200-day moving averages). As you can see, it’s still down significantly this year, but has rebounded hard since June. The question some investors are wondering is if they should take some chips off the table before the downtrend resumes. Afterall, inflation is still sky high, the fed is still raising rates aggressively and your account balance is likely a lot higher than it was 2-months ago. We share a few data points and our opinion in this note.
Big-Dividend BDC: Distinct Growth Strategy
Cloud Monitoring Company: Lots of Long-Term Upside, On Sale
If you have the luxury of being a long-term investor, you have a distinct advantage and highly lucrative opportunity that is not available to others. Specifically, you can benefit from long-term compound growth (the eighth wonder of the world), particularly as it pertains to powerful secular trends. In this report, we review one such business (a SaaS application monitoring company) that will benefit from cloud migration and digitization secular trends over the long-term, despite the recent steep share price sell off (buying opportunity) so far this year.
Chip Stocks Volatile 2022—Weighing the Opportunity Ahead
Here is a look at the volatile performance of some of the largest and most popular semiconductor (chip) stocks so far this year. As you can see based on the green bars, performance has been very strong over the last month, but they are still down a lot this year (red bars). Some investors may view these stocks as still too expensive based on the current valuation (EV/EBITDA), but that is not necessarily the case when you compare these stocks to their strong revenue growth rates (this year and next) and their very healthy net margins.
Skip UTG: Two Better Big-Dividend CEFs
Closed-End Funds (or CEFs) are often an income-investor favorite because they can pay large distribution yields. However, CEFs come in many different shapes and sizes. One very popular CEF, The Reaves Utility Income Fund (UTG), has performed very well this year, but in this article we argue that it’s time to stop adding money to UTG because there are currently better CEF opportunities available. We will review two specific attractive CEFs (that we currently prefer over UTG) in this report.
The Trade Desk: 5 Top Growth Stocks To Crash Again Soon
The Trade Desk (TTD) reported strong results in its latest quarterly release on Tuesday. But despite the latest gains, the shares will likely crash again soon. In particular, high-growth stocks (like The Trade Desk) have rebounded hard since mid-June, but are still down dramatically year-to-date, and Wednesday’s newly released inflation numbers will likely embolden the fed in its fight against inflation. In this report, we review the ugly top-down environment for five top growth stocks that will likely crash again soon, then dig into the details on The Trade Desk in particular and then finally conclude with our strong opinion about investing in The Trade Desk and top growth stocks in general.
Two High-Income CEFs Worth Considering
When investing in closed-end funds (CEFs), we look for a variety of things, including a big distribution payment, an attractively-discounted price (versus NAV), reasonable leverage, and attractive management team, and a strategy that can succeed (especially in current market conditions). The following two CEFs meet all of these requirements, and they are particularly interesting and worth considering for investment right now.
S&P 100: 10 Best, 10 Worst (YTD)
50 Top Growth Stocks, Down Big
It’s been an ugly year for top growth stocks. The fed has been raising rates aggressively to battle sky-high inflation, and that has the side effect of causing high growth stocks to sell off particularly hard. For example, here is a look at 50 high-growth stocks (those with very high expected revenue growth rates for this year and next), sorted by market cap (and as you can see—the year-to-date total return column has a lot or red!).
Attractive High-Growth SaaS Stock: Payroll and Human Resources
We purchased shares of this high-growth small-cap stock in our Disciplined Growth Portfolio in 2015 (when the share price was under $30 and the market cap was around $1.4 billion). It just announced another quarter of strong earnings on Friday, and the shares now trade at around $260 (and the market cap is over $14 billion). What’s more, we continue to like its exceptionally strong growth trajectory going forward (the shares have a lot more upside ahead). This report reviews the business and 10 things we like about it going forward.
A Warning: As Markets Continue to Rally
70 Yields Over 7% (with Big YTD Price Declines)
With the market posting strong gains over the last month (particularly high growth stocks) it can make sense to focus on areas receiving less attention. And in this report, that includes big-dividend investment opportunities that are still down big year-to-date. More specifically, we share data on 70 investments that currently yield over 7% and have experienced significant share price declines so far this year. The list includes REITs, BDCs, CEFs and more.
Attractive 11.6% and 10.1% Yields: Try Small Cap CEFs Now
Unlike the S&P 500, the Blue Harbinger Income Equity Portfolio has posted a positive return so far this year. There are a lot of factors that have contributed to the outperformance, and one has been the noticeable omission of small cap stocks. However, there is growing evidence to believe now is an attractive time to add an allocation to small cap stocks within your portfolio. In this report, we review two very attractive ways to do that (particularly if you are an income-focused investor) with two highly-compelling closed-end funds (CEFs) that offer big double-digit yields. We review all the details in this report.
Medical Properties Trust: 50 Big-Dividend REITs, Down Big
With interest rates higher this year, big-dividend REITs have been hit hard, particularly those with higher levels of debt. And one name that just sold off even harder (following its earnings announcement on Wednesday) is Medical Properties Trust (MPW). MPW provides capital to hospitals, has a 7.2% dividend yield and has increased its dividend every year for the last nine years in a row. In this report, we compare MPW to 50 other big-dividend REITs (in terms of a variety of financial metrics) and then dig into its business model, current valuation, dividend safety, the four big risk factors it currently faces and finally conclude with our strong opinion on investing.
The Economic Bears vs The Stock Market Bulls: We have chosen our side!
This month’s Blue Harbinger Thinker is now available. In this report, we share our thoughts on where the market goes from here, performance and holdings updates for our two portfolios (Income Equity and Disciplined Growth), some thoughts on attractive individual stock ideas, and we conclude with our strong opinion on which side you should choose: The Economic Bears or The Stock Market Bulls.
August Portfolio Updates Available
S&P 500: Reasons to Be Afraid
Stocks have posted strong gains over the last 3-weeks, but a lot of investors remain fearful that this year’s painful downtrend will resume. After all, inflation is sky high (9.1% CPI), the fed is expected to hike rates another 50pbs (possibly 75bps) at its next meeting (which will slow economic growth), and the 10-year treasury yield (2.68%) has dipped (over the last 3-weeks) and remains inverted versus the 2.85% 2-year treasury yield (a strong recession indicator).
3 Top Big-Dividend Preferred Stocks Worth Considering
Preferred shares can offer big-yields and less risk than common shares. And given the current market environment, some preferreds are offering particularly compelling opportunities as prices are down, yields are up and underlying businesses remain relatively healthy. This report gives a little more information on preferred shares, and then concludes with three examples that are particularly compelling investments for income-focused investors right now.