Despite macroeconomic concerns, the stock market has continued to post strong gains this year thereby leaving some investors wondering if it’s time to take some chips off the table. One popular approach is owning attractive big-yield investments (6% to over 10% yields) that will continue to pay high income regardless of what happens in the broader market. In this report, we provide an overview of “frothy” market conditions (e.g. valuation metrics) and then countdown our top 10 big-yields (including BDCs, stock and bond CEFs, REITs and more). We conclude with a critical takeaway that is sadly overlooked by many.
Update: Top 10 Growth Stocks, Disciplined Growth Portfolio
Climbing the Wall of Worry: The S&P 500 was up another 1.5% this week (and now +22% year-to-date) despite major jitters over the US election in just three weeks. We have updated our Top 10 Growth Stocks and our Disciplined Growth Portfolio to reflect new opportunities and continuing confidence in the long-term economy (despite a never-ending drumbeat of short-term naysayers). If you are looking for two minutes of fame, go ahead and hide in cash until the next market correction (which may be in two days, two years or two decades), but if you are looking to keep building long-term wealth, the ideas in this report are absolutely worth considering.
Quick Note: New Purchase (Disciplined Growth Portfolio)
We added a starter position in this high-growth mid-cap stock. The share price has significant momentum and so do the underlying fundamentals of the company. The company’s new AI-powered mobile solution (released ahead of schedule on Thursday 9/26) should keep revenues growing rapidly as it's purpose build for today’s marketers.
Big-Yield BDC Comps: ARCC, MAIN, OBDC, OCSL
A lot of income-focused investors are attracted to BDCs for their large dividend yields. However, not all BDCs are created equally. In the following table you will see comparative data for top BDCs, including the percent of investments that have fixed-versus-floating rates, the percent of debt they have that is fixed-versus-floating rate, price-to-book value, current dividend yields and the percent of first lien loans they have made as investments.
High Income NOW Portfolio Update
High-Income NOW securities have performed very well over the last 1-2 months as they often do during bouts of market volatility (as we have seen for stocks in general over the last 1-2 months). The High-Income NOW Portfolio and Top 10 Tear Sheet have been updated, with no major changes, but some important commentary below.
Top Growth Stocks (Updated): Top 10 Tear Sheet + Disciplined Growth Portfolio
Our Top 10 Growth Stocks Tear Sheet has been updated. And so has our complete Disciplined Growth Portfolio. There have been two main new purchases, and one prominent complete sale (as well as a handful of rebalancing trades, plus the liquidation of several smaller positions). You can also access “buy under” prices relative to current market prices, plus additional aggregate and security-specific data.
VOO: Easy Alpha, Big Income, Chi
This report is about generating easy alpha and big steady income from a balanced core portfolio of ETFs (such as Vanguard’s S&P 500 ETF (VOO)) and augmented with optional satellite single-stock investments as per your personal preferences (we give multiple top idea examples). This strategy will beat the pants off your peers and create an easier life for you (“chi”). After reviewing the details and advantages of VOO (and a balanced core-satellite portfolio), we conclude with our strong opinion on how best to implement this highly-customizable strategy to achieve your personal investment goals.
BDCs (Big Yields): Prices Weak as Credit Spreads Widen, Rate Cuts Loom
Sharing Updated Data: Big-yield BDCs have been particularly weak over the past few weeks (following earnings), especially in light of widening credit spreads (i.e. lending risk) and a looming rate cut by the fed (which will negatively impact some floating rate recipients more than others). Sharing updated comparison data on 35+ big-yield BDCs, plus a brief opinion on whether now is the time to buy or head for the hills.
High Income NOW: Updated Top 10 Tear Sheet, 23-Position Portfolio (9.7% Yield)
Our Top 10 “High Income NOW” Tear Sheet has been updated. And so has our complete 23-position “High Income NOW” Portfolio (aggregate yield is 9.7%). There have been several new positions added, two complete sales and some rebalancing of existing positions. You can also access “buy under” prices relative to current market prices, plus additional aggregate and security-specific data.
Forget High Growth: Top 10 Big Yields Worth Considering (August Edition)
There comes a time in every investor’s life when they realize chasing high growth stocks makes absolutely no sense whatsoever. Sure, if you’re 25 and want to roll the dice (on “the next big thing”) go for it. But if you’ve built a nest egg, and you just want your investments to produce big steady income, this report is for you. We countdown our top 10 big yield investments (including REITs, BDCs, CEFs and more) with a special focus on why each opportunity is uniquely attractive right now.
Rough Week for Stocks: Do This Now
In a major market reversal, leading mega-cap and semiconductor stocks have sold off hard over the last week (see table), and a lot of investors are concerned this may be the beginning of something much worse. We’ve been hearing for months, even years, these names were over-extended, and some investors are flummoxed about what to do (i.e. is it time to dump growth and tech stocks, and dive headfirst into value stocks—or even bonds?). In this quick market snapshot report, we share our strong opinion about what investors should be doing right now.
Software Application Stocks: Interest Rates, Market Rotation and 3 Attractive Opportunities
So the latest reports of cooling inflation triggered some market rotation this week, and there could be more to come. One group that may be particularly well-positioned for gains is select software application stocks. For example, the group has been underperforming the market, but the fundamentals have remained strong. In this report, we briefly review changing interest rate expectations, sector rotation, and 3 top software application stocks, especially as the AI boom proliferates beyond just phase one hardware/semiconductors).
Top 10 Growth Stocks (July Edition): Market Rotation Opportunities
Owning top businesses for the long-term doesn’t mean turning a blind eye to the risks and rewards of market rotation. While Main Street is just now hearing about Nvidia for the first time (it’s up nearly 3,000% over the last 5-years), most investors know chip stocks (like Nvidia) are notoriously cyclical and (despite powerful long-term megatrends, like AI) 50% pullbacks are not uncommon. In this report, we countdown our top 10 growth stocks (July edition) with a special focus on market cycle risks and outstanding opportunities with big long-term upside.
Top 10 Big-Yields: REITS, BDCs, CEFs (July Update)
Concentration can help you get rich, but diversification helps you stay rich. And if you own 25 different flavors of big-yield mortgage REITs—you’re still not exactly “well diversified.” In this report, we countdown our to 10 big-yield opportunities, with a special focus on diversifying your risks (across different investment types) while simultaneously keeping your income high.
50+ Big-Yield CEFs: These 2 Worth Considering
In this quick note, we’re sharing updated data on 50+ big-yield closed-end funds (“CEFs”) from across categories. You likely recognize many of these top names. We’re also highlighting two in particular that are attractive because of management’s new active initiatives to shrink the discount to NAV (a good thing).
Top 10 "High Income NOW" Securities Tear Sheet (June Update)
Quick Note: The Top 10 “High Income NOW” Tear Sheet has been updated for July (and it can be accessed below). There were a few minor updates. For example, we added to a big-yield municipal bond CEF (as an honorable mention) because of management’s announced efforts to reduce the price discount), and we added to a top BDC that recently sold off (as it presents an attractive buying opportunity after a price decline). Disciplined, goal-focused, long-term investing continues to be a winning strategy.
Distribution Quality Scores: 10 Top Big-Yields, Ranked
One of the greatest concepts ever is retiring and simply living off the dividends. No work, no tasks, just big steady distributions rolling in like clockwork (for you to spend and live life however you please). The problem with this, of course, is that many investors end up chasing after the biggest yield opportunities without properly considering the quality of those yields. In this report, we introduce our “Big-Yield Quality Scores,” ranking 10 very popular big yields, including PDI, JEPI, SCHD, USA, ARCC, AGNC and more.
Top 10 Growth Stocks: Big Long-Term Upside
The tech-heavy Nasdaq just closed at a new all-time high. And while this is encouraging to some investors, and discouraging to others, the best bet for long-term investors is to simply own geat businesses (and ignore everything else—it’s just noise). In this report, we countdown our top 10 growth stocks, starting with a few honorable mentions. If you are into day trading, options and crypto—ignore this report—it’s not for you. If you like massive long-term compound growth, continue reading for our top ideas.
Updated: Top 10 Growth Stocks, Disciplined Growth Portfolio
Top 10 Big Yields: CEFs, BDCs, REITS (May 2024)
It’s a great time to be a big-yield investor (6% to 13% yields). For starters, the aggressive interest rate hike cycle (that pressured the prices of interest rate sensitive securities lower over the last two years) has now ended (as per fed chair Jerome Powell, it’s unlikely the next interest rate move will be higher). And with interest rates now settling in at their highest levels in over two decades, certain out-of-favor contrarian opportunities are particularly compelling. In this report, we countdown our top 10 big-yield opportunities, including closed-end funds (“CEFs”), business development companies (“BDCs”), real estate investment trusts (“REITs”), dividend stocks and more.