Low interest rates, improved bank reserve requirements, and quantitative easing have done such a great job restoring faith in the markets following the financial crisis, that the S&P 500 continues to reach new highs and fear (as measured by the VIX) has practically evaporated altogether. But valuations are starting to get stretched. This article addresses the question: Are we finally due for a market correction?
High-Yield Opportunity: Discounted Price, Compelling Strategy
If your primary objective as an investor is to generate attractive total returns from which you can source steady income payments, then you may want to consider the closed-end fund (“CEF”) described in this article. It offers big monthly income distributions, a discounted price, compelling real estate market conditions, no risky leverage, and a long-term track record of success. However investors should be aware that a portion of the income distributions are sourced from capital gains (in a tax-efficient manner), so don’t expect the value of this investment to climb dramatically over the long-term, unless you’re reinvesting those big juicy monthly distribution checks.
Big-Dividend Market Leader: Improving Risk/Reward Profile
This article reviews a big-dividend market leader that has been able to improve its risk versus reward profile and capture market share while its peers have been struggling. The industry overall has been struggling, but things are continuing to improve, especially for the very interesting company we review in detail in this article. We also offer our views on how to "play" this big-dividend opportunity.
New Ideas: Upcoming Trades
As we wrote here, we sold our shares of Caterpillar on Friday for +110% gain after owning them for 19-months. We expect to purchase new shares with the proceeds within the next several trading days. This article highlights four very attractive investment opportunities that we are considering for purchase.
Deadly Sin #5 of 7: Do Not Chase This Yield
If you missed it, we recently wrote a public article titled "7 Deadly Sins of Long-Term Investing." Number 5 on that list was the terrible pitfall of "Yield Chasing" (buying stocks simply because they offer a high yield instead looking under the hood at the fundamentals). This article reviews a specific very-high-yield company that is increasingly tempting to some investors. However, based on our fundamental review, we strongly recommend you stay away from this value trap!
Attractive Yield: The Reward Outweighs The Risk
We like to share a variety of investment ideas with our readers, and today we share a differentiated high-yield opportunity that we have discussed in the past. It may not be interesting to everyone, but we believe the yield is attractive and the rewards outweigh the risks. Plus the price is attractive!
Performance Update, And 3 Attractive Entry Points
All three Blue Harbinger portfolios (Income Equity, Disciplined Growth, and Smart Beta) continue their long-term track records of outperforming the S&P 500. This report provides a brief update on August performance, and shares three attractive investment opportunities currently trading lower and thereby providing attractive entry points for investors.
We Own This REIT, And It’s Still Going Strong
This Stock Yields >5%, Shares Are Attractively Priced
This week’s Blue Harbinger Weekly shares a compelling +5% yield opportunity, and the shares have sold off so far this month thereby making for a more attractive entry point, in our view. This company will benefit from the growing retail sector and doesn’t run the risk of getting “Amazoned” because it is indifferent between serving online versus brick and mortar retail customers.
A Double-Digit Yield Worth Considering
If you are an income-focused investor, with capital appreciation as a secondary objective, then you may want to consider the double-digit yield offered by the stock we review in this article. Specifically, we detail the bull-side arguments, followed by a few bear-case caveats, and conclude with our views on how investors should consider this opportunity.
A Brief Update on Each of Our Current Holdings
We finished July with positive returns for all three of our Blue Harbinger strategies (Income Equity, Disciplined Growth, and Smart Beta), and all three strategies continue to outperform the S&P 500 since their inception. This report provides a brief update on each of our current positions. We believe there is significantly more upside ahead.
An Update on Our High-Yield REIT Holdings
Members’ Mailbag: Kinder Morgan Preferred Shares Yield 10.9%
From time to time, we like to share investment-related questions/ideas from our readers. Today's "Members’ Mailbag” comes from John W. Specifically, John asks:
"What is your thinking on KMI now that they have announced a schedule for future dividend increases? Their preferred shares have 4 dividend payments before conversion so would it be smart to simply invest in KMI-A as a way to begin a long position in KMI?"
Thanks for that question John, and we have a pretty strong opinion on this one…
New Residential: Weighing the Risks Ahead
New Residential Investment Corp (NRZ) is a unique mortgage REIT (think "MSRs") that is loved by many because of its big steady growing dividend payments (it currently yields 12.9%). However, this big yield does not come without risks as we’ve seen the shares fall 11% in the last three months. This article provides a brief review of the high-level risks facing NRZ, and then shares our views on the right way to think about NRZ.
Members Mailbag: Variable Rate, Fixed-Income, Closed-End Funds
From time to time, we like to share investment-related questions/ideas from our readers. Today's "Members Mailbag" comes from member Ken W. Ken asks: "Given rising interest rates, albeit slowly, are you considering any floating rate funds/ETFs such as FRA, BGX, BX, JFR for your Income Equity Portfolio?" Thanks for that question and for those ideas Ken. Here are our thoughts...
Our Attractive High-Yield Greek Stock: Two Ways to Play It
An Attractive Uncommon High-Yield REIT
Taking Profits: Selling an "Aristocrat," Buying a "Dog of the Dow"
A Penny Saved Is A Penny Earned
All Blue Harbinger strategies continue to deliver strong positive returns without any of the full-service brokerage fees that “do-it-yourself investors” are trying to avoid. Our Disciplined Growth portfolio beat the S&P 500 during May, and our Income Equity strategy finished the month with a 5.4% yield, nearly 3.5% higher than the S&P 500. We’ve seen value stocks underperform growth stocks this year, and as contrarians we like value stocks even more now.