The market has been climbing a wall of worry this year and the economy is teetering on an ugly recession. The fact that the yield curve is steeply inverted (see chart below) has contributed to recent bank failures (Silicon Valley and First Republic), and more things in the economy are going to break. That said, the stock market tends to recover well before the recession is over. In this report, we share five attractive dividend stocks that are particularly compelling from a contrarian standpoint considering the share prices are down, the dividends remain strong, and we expect both (share prices and dividends) to get even significantly better over time.
Members Mailbag: Small & Micro Cap CEFs (RVT, RMT)
100 Big-Yield CEFs: Ranking Our Top 5
Income Equity Portfolio: 3 New Buys, 2 Positions Trimmed
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.
2 Attractive CEFs: Big, Healthy, +5.0% Yields
In general, investment “fund” vehicles are less desirable (because of the typical high fees and chronic underperformance), but the two closed-end funds (“CEFs”) described in this report are attractive for a variety of reasons. For example, they’ve both thrived and outperformed for decades (net of all fees and expenses) thanks to their disciplined management teams, they both pay big healthy dividends (5.4% and 5.5%, respectively), trade at attractively discounted prices (versus NAV), use a small prudent amount of leverage (a good thing), have compelling sector/style allocations, and market conditions remain attractive coming out of the pandemic. You might consider buying a little (we own both) and just hanging on. You’ll keep getting paid big healthy dividends for if/when you need them, otherwise just reinvest the cash and enjoy the powerful long-term compound growth.
This 7.2% Yield Equity Style CEF Is Attractive in Many Ways
If you like to generate high income from your investments, this disciplined equity style CEF yields 7.2% and it is currently attractive in multiple ways. For example, its discount to NAV, its well-seasoned management team, its attractive style tilt, its US economy-focus, its impressive long-term track record, and its ability to help you diversify away from the traditional high income risks, all while using great discipline to pay you the steady high income payments you need. This CEF can be an attractive addition to your diversified, long-term, high-income-focused, investment portfolio. We own it.
The More It Falls: Top 5 Big Yields Worth Considering
This report is a continuation of our free report title “Top 10 Big Yields Worth Considering.” However, this members-only version contains all the detail for the top 5 big yields worth considering. It includes equities, debt, a closed-end fund, and a very attractive preferred stock. All yielding between 6% and 12%, and all trading at very attractively discounted prices.
Overblown Fear: Attractive 8.7% Yield, On Sale
This Closed-End Fund is attractive after the recent sell-off, not only because it yields 8.7%, but also because overblown fear has caused it to trade at an unusually large discount to its net asset value. Strong management, very reasonable management fees, a prudent and conservative use of leverage, and a powerful market style allocation, all make this CEF attractive and worth considering.
The 5 High-Yield Equity CEFs We Own: Hold, Sell or Buy More?
Top Big-Distribution CEF Ideas for 2018
If you are an income-focused value investor, some CEFs are currently offering highly attractive “double discounts” heading into 2018. CEF investors should be aware of the distribution income sources, including dividends as well as capital gains, for example. This article reviews our current CEF holdings and several top ideas for 2018.
Fighting Risk Creep: Are You Ready for 2018?
“When the markets are good, like the current long running bull market… we must all fight risk creep in the portfolio.” That’s according to a recent LinkedIn note from Blue Harbinger friend, Brian Coker, CFA. It’s also a good segue into the topic of this week’s Blue Harbinger Weekly: High-Level Risks and Opportunities for 2018.
4 Compelling High-Income CEFs
Three Attractive High-Yield Closed-End Funds
If you are an income-focused investor, big-distribution closed-end funds ("CEFs") can be very attractive, but there are a few things investors need to be aware of. This article reviews important pros and cons of CEFs, and then highlights three of our favorite high-income CEFs that income-focused investors may want to consider.
Top 5 Attractive +7% Yields Worth Considering
7 Attractive Dividend Investments
This week’s Weekly provides an update and outlook for seven of our existing Blue Harbinger holdings. Specifically, we remain bullish on our healthcare REIT holding, we see more big gains on the industrials stock we purchased last summer, we remain comfortable with our commercial real estate position (despite signs the industry may soon slow), and finally, our four recent CEF purchases have seen their discounts to NAV start to shrink (a good thing), they continue to pay very large distributions, and we remain very bullish on their strategies.
New Trades: Income Equity Strategy
The purpose of this post is to provide an update on several new trades in the Blue Harbinger Income Equity strategy. Specifically, we have added several new attractive closed-end funds (CEFs) that offer very healthy yields. We also sold one of our biggest yielding individual stocks, and we provide a rationale for the sale.
This 8% Yield Small Cap CEF Is Attractive
Small cap stocks provide significant long-term price appreciation potential, but a perennial problem for income-investors is they pay very little in terms of dividends. However, the small cap CEF we review in this article offers a very attractive 8.0% annual yield (paid quarterly). It also offers a great management team, an impressive long-term track record, and it currently trades at a compelling 16% discount to its NAV suggesting it has strong price appreciation potential ahead.