The big yield preferred shares of Altera (formerly Teekay Offshore, until Brookfield renamed it) will benefit in the near to mid term from from oil price contango. More specifically, Altera's shuttle tanker business is enjoying significant but temporary tailwinds due to the surge in oil storage demand. Fixed term and fixed rate contracts with blue chip clients will also help protect the top line. Altera has a comfortable near-term debt maturity schedule and sufficient cash cushion to support the dividend. The broader market sell off has created an attractive buying opportunity.
Market Too Hot? Top 10 Big Dividend REITs Worth Considering
With the S&P 500 recently hitting new all time highs, some investors fear we are overheating. One way to take a little risk off the table is by investing in attractive big-dividend REITs, which tend to rise and fall less with the overall market, but keep paying those big dividends throughout if you select them right. Despite, some analysts arguments that even REITs are overheating, many of them remain a much safer bet (with much higher income) compared to the overall market. This article addresses REIT valuation concerns, as well as overall market concerns in light of the Fed’s changing interest rate posture and where we seem to be (very late) in the current economic cycle. We conclude with our Top 10 Big-Dividend REITs worth considering.