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.
Tsakos Preferreds: Despite Risks, Attractive +10% Dividend Yield, Capital Appreciation Potential
If you are an income-focused investor, these preferred shares are worth considering. Despite the risks (such as a high debt load, a growing amount of preferred share dividend payments, significant fleet depreciation and the first decrease in oil demand since 2009), there are reasons to believe this investment opportunity is very attractive. For example, the company has historically navigated through many crisis situations, thanks in large part to its fixed-rate chartering policy. Further, the company has a diversified fleet and a consistently improving debt profile (albeit with growing preferreds). Further still, efforts to improve the common stock’s price (via a reverse stock split), the expected recovery in charter rates (from an anticipated oil demand rebound in 2021) and a possible tanker supply imbalance (created by the implementation of IMO regulations), all bode well. Overall, we like the deeply discounted price on the preferred shares, especially considering the big stable dividend payments to investors.
Top 7 Preferred Stocks: 7% Yields, and Up (Members-Only)
In this members-only report, we provide all the details for our top 7 big-dividend preferred stocks. And as mentioned previously, if you like to earn high income on your investments, and you are frustrated with artificially low interest rates (thanks to the Fed’s meddling), you might consider preferred stocks. They offer compelling high yields, and less volatility risk than many other high yield opportunities. This week’s Blue Harbinger Weekly shares our top high yield preferred stocks (we currently own 6 of the top 7). Without further ado, here is the full (members-only) report.
Top 5 High-Yield Contrarian Opportunities (Members-Only)
Tsakos: Tempting High Yields, Cash Flows Uncertain
Tsakos Energy Navigation (TNP) is a marine shipping company (mainly crude oil) that offers an array of high-yield equities including 5 series of preferred shares with dividend yields from 7.9% to 9.5% and common shares offering a 5.8% dividend yield. But before you start trying to decide which of Tsakos’ many high-yield securities you want to invest in, you might first want to consider whether you believe the business will actually produce the cash flows necessary to support those payments to investors. This article details the two biggest risks threatening Tsakos’ future ability to pay, and then reviews the differences between the company’s array of high yield securities. We conclude with our thoughts on how income-focused investors might want to “play” Tsakos.
Attractive High-Yield Preferred Stocks Worth Considering
Preferred stocks can be attractive to investors because they offer higher yields and lower volatility than common stocks. Currently, preferred stocks have sold-off as shown in the following chart. This article highlights nine big-dividend preferred stocks that we currently consider attractive and worth considering.
Top 5 Big-Yield Investments to Start 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.
We Own This Big Dividend with Big Upside Potential
If you are a contrarian, income-focused investor, this big-dividend stock may be worth considering. Not only does this international searborne crude oil transportation company offer a big 5.1% dividend yield that we expect will be increased soon, but there are also company-specific and macroeconomic-cycle factors that may drive its share price significantly higher.
Off the Beaten Path: High-Income Ideas
Three (3) High-Yield Shipping Opportunities
The shipping industry has been decimated in recent years as measured by the Dow Jones Global Shipping Index (DJGSH) which is still down nearly 50% since mid-2014 (and it now pays an 11.9% yield!). And while there may be some very valuable contrarian opportunities in the space, many shippers are in deep distress and there will likely be more bankruptcies. This article highlights three ways to play the space.
Exciting Updates at Blue Harbinger
In this week’s Blue Harbinger Weekly, we provide a brief update on our shipping company holding (which has gained over 30% since early November), recap links to our newest reports on Saratoga Investment Corp., Facebook, “Big Risks Facing the BDC Industry,” and our latest Blue Harbinger Watch List. And last, but not least, we’re excited about our new update on personal investment advisory and custom portfolio management services.
Our 28 Favorite Stocks: July Performance Review & Outlook
In this week’s Blue Harbinger Weekly, we provide a brief performance review and outlook for each of the 28 holdings across our Blue Harbinger strategies. We also provide access to a members-only report on our “Top 3 Covered Call Stocks.” Lastly, you’ll notice we’ve updated performance though the end of July, and all three Blue Harbinger strategies continue to significantly outperform.
Top 3 Big-Dividend Preferred Stocks
This week's Blue Harbinger Weekly reviews three top big dividend preferred stocks. They all offer large dividend yields and significant price appreciation potential. This report is a continuation of our free report titled Five "Good" Big-Dividend Preferred Stocks.
New Trades and Top Five Big Dividend Stocks
We have multiple exciting updates in this week’s Blue Harbinger Weekly. First, we’ve placed several new trades in the Blue Harbinger Income Equity strategy bringing the portfolio's aggregate dividend yield to over 5.0%. Second, in a continuation to our public report Nine Big Dividend Stocks Worth Considering we have included detailed reports for each of the Top Five Big Dividend Stocks (and yes, we do own all five in in the Blue Harbinger Income Equity strategy).
Tsakos Energy Navigation (TNP) - Thesis
We have initiated a position in Tsakos Energy Navigation (TNP) as the shares have declined 9.1% in the last two weeks. Tsakos is a Greek company (Athens) that trades on the New York Stock Exchange. It is a provider of international seaborne crude oil and petroleum product transportation services. Tsakos makes more money when oil prices are low (as they are now), it pays a big dividend (currently 5.4%), and it has a lot of upside potential considering the market is not yet giving it nearly enough credit for its rapidly growing net income.
What a Difference a Week Can Make
Strong jobs data and a rebound in oil prices fueled the S&P 500 2.6% higher last week. Our Income Equity, Disciplined Growth and Smart Beta strategies all outperformed for the week, and they all continue to outperform since inception. Also, our Tsakos options trade is now up 98% since we initiated it on Feb 8th. Next week’s biggest scheduled data release will be crude oil inventories on 3/9, and we believe the stocks in all three of our strategies are set to climb higher. Here are the holdings (and recent performance) for each strategy:
Where Will Yahoo! Go To Die?
Yahoo is looking to sell its core business, and the board is excluding CEO Marissa Mayer from the process. In this week’s Weekly, we consider who might actually buy Yahoo and what they’ll pay (spoiler alert: they’re not going to pay much, and they are going to cut costs to the bone). On a separate note, our new big-dividend Blue Harbinger Income Equity strategy is off to a terrific start this year, outperforming the S&P 500 by 2.2% already.
Will Oil Drag the Market Lower Again?
The market followed oil lower last week as crude inventories exceeded expectations. Important economic releases this upcoming week include crude inventories on Wednesday (2/10) and retail sales on Friday (2/12). In this week’s Weekly we review the Blue Harbinger stocks that announced earnings last week (they were better than expected) and the ones that announce this upcoming week. We also share a top contrarian idea we’ve been working on to profit from “low for longer” oil prices.