Closed-End Funds, or CEFs, can be an income-focused investor favorite because of their big steady distribution payments to investors (often yielding in excess of 6% to 10%, frequently paid monthly). However, not all CEFs are created equally (in fact they can be widely different). In this report, we offer up a quick review of what a CEFs is, we share current data on over 150 high-income CEFs (including strategies, leverage, yield, distribution frequency and discount/ premium versus net asset value), and then finally conclude with a ranking of our top 7 CEFs that are particularly attractive right now and worth considering for investment (if you are an income-focused investor).
Adobe to Acquire Figma for $20 Billion
So the highly-profitable multimedia and creativity software company, Adobe, has agreed to acquire web-first collaboration design platform, Figma, for $20 billion (half cash, half shares). At roughly 50 times next years revenues, and considering Adobe’s current total market cap is only around $173 billion, this is a hefty price tag, especially at a time when the market is down and economic growth is slowing. We share our thoughts on the acquisition and the future of Adobe in this quick note.
Attractive Industrial REIT: 4.4% Yield, Discounted Price
Industrial REITs have sold off particularly hard this year, but one name in particular is attractive if you can handle its strategy and risks relative to industrial REIT peers. In this report, we review this particular REIT’s business, industry outlook, valuation, dividend and risks. We conclude with our opinion on investing in this 4.4% dividend yielder.
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.
6.1% Yield Blue-Chip Stock: Risks Versus Rewards
As the share price of this large-cap blue-chip stock sits near its 52-week low, its dividend yield (currently 6.1%) sits near a decade-long high. What’s more, the valuation is compelling if you can get comfortable with the big risk factors it currently faces. In this report, we review the business, valuation, dividend safety and risk factors, and then conclude with our strong opinion on investing.
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.
Top 10 Growth Stocks (That Are Currently Down Big)
Despite all the gloom and doom in the market, and despite the big reasons to stay bearish (as we will review in this report), the market will eventually recover and go much higher. We don’t know if the majority of the selling is over, or if things will continue to get worse in the short-term (no one does). But we do know that over the long-term we expect the market to eventually recover and go much higher. In this report, we review the terrible market environment, including data on 150 top growth stocks that have sold off hard. Then we rank our top 10 long-term growth stocks from the list, starting with #10 and finishing with our top ideas.
50 Hated Pandemic Stocks, These 3 Are Worth Considering
After the initial pandemic shock in 2020, certain high-growth stocks performed well. Extremely well. Bolstered by extraordinarily low interest rates and a new crowd of “work-from-homers” (with newfound time to “invest”) it seemed the sky was the limit. Until it wasn’t. Flash forward to now, the market has fallen sharply this year (especially high-growth stocks), and there is no short supply of reasons to stay bearish. Very bearish. In this report, we share data on 50 high-growth stocks that have crashed, run through a list of compelling reasons (data points) to stay bearish, and then discuss the merits of three interesting high-growth stocks from the list that have crashed particularly hard, with a special focus on pandemic darling, Palantir (PLTR). We conclude with some important takeaways and our very strong opinion about investing in Palantir and investing in this market in general.
40 Big-Dividend Mortgage REITs: Terrible YTD as Spreads Widen, Rates Rise, Fed Unwinds, Housing Risks
In theory, Mortgage REITs (or mREITs) do well when interest rates rise, but so far this year they have done poorly because MBS spreads have risen sharply (an indication of risk). Here is a look at 40 big-dividend mREITs, plus some insights on what is happening to their share prices (mainly courtesy of the Fed’s balance sheet), and then a few mREIT investment ideas worth considering.
Cybersecurity Stock: Revenues Keep Growing Fast, Shares 35.2% Below ATH
This rapidly growing cybersecurity business announced earnings after the close on Tuesday. The results were better than the street’s already lofty expectations, plus the company raised forward guidance (both good things). This brief note is an update and follow up on our previous report, and a reminder to readers on how we feel about investing in this stock, at this time.
Big Data Stock: Massive Sales Growth, About to Turn EPS Profitable
This big data stock went public in late 2020. And after some incredible post-IPO gains in 2020-2021, the shares came crashing down as the high-growth pandemic bubble burst. However, the company’s massive revenues have continued to grow an incredible pace, it just announced impressive quarterly results last week, and it is about to turn EPS positive (a great thing in this environment). And critically important—there is still a lot more room to run (in terms of sales growth that will lead to massive profits in the relatively near future.
A Warning from Blue Harbinger
Market Check In: 10,000 Foot View
Top 10 Big-Dividend Preferred Stocks (6% to +10% Yields)
Some investors are happy to know that interest rates on top savings accounts have risen from approximately 0% in 2020 to over 1% (in some cases) in 2022. However, when you factor in inflation of over 8% (CPI is 8.5%) you’re still losing money (or at least losing buying power). For those willing to move further out on the income-investment spectrum, preferred stocks can offer a compelling combination of higher income and lower price volatility (as compared to common stocks). In this report, we rank our top 10 big-dividend preferred stocks, counting down from #10 and finishing with our #1 top idea.
9.6% Yield Preferred Shares: Discounted Price, Strengthening Conditions
The marine shipping industry can be volatile. However many of the companies in this group offer steadier big-dividend preferred shares (that can appeal to income-focused investors). In this report, we review a company that offers seaborne crude oil and petroleum product transportation services worldwide, including its attractive qualities and current risks, and with a special focus on its 9.6% yield preferred shares. We conclude with our strong opinion on investing.
Intuit Quarterly Earnings Update
Intuit (the financial platform behind TurboTax, QuickBooks, MailChimp, CreditKarma and Mint) released earnings on Tuesday after the close, and they were positive. The company beat expectations on revenue and earnings, and also raised forward earnings guidance. This note is a quick review of the latest results.
Popular mREIT: Absolute Junk, 2 Better Big-Dividends
The popular mortgage REIT we review in this report offers huge dividends on both its common and preferred shares. And while some investors are drawn to these big income payments, we believe it is an absolute junk investment. In this report, we explain why it should be avoided, and then offer two better big-dividend opportunities for you to consider.