The market has been volatile this year, and it’s left a lot of investors feeling very uncomfortable. Contributing factors have ranged from a surge in oil prices, to upward moves in interest rates, the unwinding of many “pandemic trades,” bitcoin narratives, market fear mongers, and of course the ever present chorus of nonsensical get-rich-quick people. We have some very strong advice for anyone feeling unsettled about the market. If you’ve been following Blue Harbinger long enough then you’ve likely heard it many times before. It’s worth repeating now…
Attractive Real Estate CEF: 7.2% Yield, Paid Monthly, Discounted Price
If you are looking for a compelling, out-of-the-box way to play the strengthening real estate sector, this closed-end fund (“CEF”) is worth considering. It offers a healthy 7.2% yield (paid monthly), it trades at a discounted price (versus its NAV), and it has a growing track record of success. Plus the real estate sector is currently attractive (we’ll explain). In this report, we review the fund strategy, holdings, leverage, expense ratio, pricing/valuation, and why we believe the opportunity is particularly compelling if you are a long-term income-focused investor.
This Media Platform Stock: Rapid Rise to Resume
This on-device media platform is attractive because of its business model, rapid growth (~115% in FY21), expanding margins, solid free cash flow generation and large market opportunity. Further, the recent share price sell off (it’s still below its all-time highs due to the the recent mini “tech wreck”) has created an attractive entry point for long-term investors. In this report, we review the health of the business, valuation, risks, and then conclude with our opinion on investing.
Main Street Capital: 6.3% Yield, Pandemic Challenges
Main Street Capital (MAIN) is a popular BDC (business development company) thanks to its big monthly dividend payments (which have never been reduced in the history of the company). Main Street provides financing solutions to a wide variety of smaller businesses—many of which were incidentally hit particularly hard by covid. The shares have not yet recovered to their pre-covid level, and in this report we review the business, the financials, the dividend, the risks and finally conclude with our opinion on investing.
New Options Trade: Chip Selloff Creates High Income Opportunity
Buying great businesses when they’re out of favor can work well over the long-term. This report reviews a compelling income-generating options trade on a very attractive semiconductor business that is currently/temporarily out of favor. Specifically, the share price is down as supply chain uncertainties add to sector momentum challenges. These factors have combined to create an attractive options trade opportunity that puts compelling upfront premium income in your pocket, and gives you a chance to pick up these attractive shares at an even lower price. We believe the trade is attractive to place today, and potentially over the next few trading sessions, as long as the share price doesn’t move too dramatically before then.
Attractively Priced Natural Gas Play (Steady Growing Dividend)
If you are looking to add an extraordinarily steady growing dividend to your portfolio, this diversified natural gas company is worth considering. It has increased its dividend payment for 50 consecutive years (it currently yields 3.9%) and it offers the potential for healthy price appreciation. In this article, we dig deeper into the company’s dividend and growth prospects by reviewing the health of the business, cash flows, balance sheet strength, valuation and risks. We conclude with our opinion on why it’s worth considering if you are a long-term income-focused investor.
New Options Trade: Very High Upfront Income, Value-Based Healthcare
This recently public company (August 2020) is on a tremendous growth trajectory (very high growth rate) as it delivers its highly differentiated, technology-enabled, value-based care model for Medicare. The shares are worth considering for purchasing outright, however this report highlights a particularly attractive income-generating options trade. Specifically, the trade puts compelling upfront income in your pocket (that you get to keep no matter what) and it gives you a shot at picking up the shares at an even lower price. We believe this is an attractive trade to place today (and potentially over the next few trading sessions) as long as the price doesn’t move too dramatically ahead of the company’s earnings announcement expected on March 8th.
New Options Trade: Very High Upfront Income, Connected TV
The market is selling off hard—especially top growth stocks. It’s likely just a short-term breather—especially for the most attractive companies. Nonetheless, when fear increases (like it just has), volatility also increases—and that means more upfront premium income available in the options market. In this report, we review an attractive upfront income-generating options trade on a powerful long-term growth stock in the connected TV space. We believe the trade is attractive to place today—and potentially over the next few trading days—as long as the market doesn’t move too dramatically before then.
The Top 5 High-Income Stocks: 4.5% to 9.8% Yields
There is a wide variety of high income stocks, and they are not all created equally. Far too often, investors make the unfortunate mistake of blindly chasing after the highest yielding stocks without realizing many of them are simply value traps. For example, what good is it to buy a stock with a 10% yield if the price declines by 20% every year? And while many of the highest yielding stocks today are simply slowly dying businesses (e.g. value traps), there are plenty of diamonds in the rough, especially when you consider the important concepts of total return and yield on cost (i.e. dividend growth). In this article, we rank our top 10 high-income stocks, starting with #10 and counting down to our #1 top idea.
8.3% Yield: Attractively Priced Top-Tier Midstream Play
If you are looking for big safe income, this midstream operator is attractive. It operates as a Master Limited Partnership (MLP), and has consistently maintained its distribution throughout the pandemic (while other midstream MLPs were cutting). Further, it’s actually increased the distribution 22 years in a row, and insiders have a large stake in the company. This article reviews the health of the business, distribution safety, valuation, risks and concludes with our opinion on investing.
Attractive 8.8% Yield: Paid Monthly
The so-called “risk-reward” tradeoff is an investing adage whereby the more risk you take—the more potential reward (return) you will receive. While that is a useful analogy (and there may be some truth to it) the investment we review in this report offers a very high return (in the form of big monthly dividend payments) with relatively low risk, and it is a great place to temporarily park some of your cash (if you are willing to take on more risk than your FDIC insured bank account). In this report, we review the company’s business model, income profile, financial position and dividend prospects, and then finally conclude with our opinion on investing.
Frothy Market Fear? Depending on Your Goals, Try This 8.1% Dividend Yield Blue Chip
If you are afraid the market is due for a significant pullback in the near-term, you might be considering moving to cash. However, and depending on your goals, you might instead want to consider the attractive 8.1% dividend yield blue chip stock described in this article. Specifically, no one knows when the next pullback is coming, but the stock described in this report has a very healthy dividend (with over 50 years of dividend increases), and the shares have significantly less volatility risk than the rest of the market (as per its 0.6, 3-year beta). Furthermore, we like the company’s aggressive share repurchase program. In this report, we review the business, valuation, dividend safety and risks, and then conclude with our opinion on who should invest.
Performance Update: Disciplined Growth Portfolio Up Again, S&P 500 Down
After a strong +53.0% gain in 2020, the Blue Harbinger Disciplined Growth portfolio added another 4.2% in January, while the S&P 500 was down 1.0%. In this brief update report, we review the holdings, weightings, price targets and ratings changes for the Disciplined Growth portfolio, as well as the 6.0% yield on the Income Equity strategy.
Pfizer's 4.3% Dividend Yield: Worth a Closer Look
The 4.3% dividend yield of mega-cap pharmaceutical company Pfizer (PFE) is worth a closer look. Specifically, its return on capital is above its cost of capital (a good thing), its margins should increase as a result of the Upjohn spinoff, its covid vaccine is in addition to an already strong core business, it’s paid 328 consecutive quarterly dividend (and has increased the dividend 11 years straight), and the share price just dipped. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion on investing.
Iron Mountain's 8.6% Yield: High Risk, High Reward
Iron Mountain’s 8.6% dividend yield is compelling for some investors but comes with risks. The company remains confident of sustaining the current dividend, but we’ll describe the big risks that investors should consider (such as debt load, lack of growth in its core storage business, and high capital intensity). While the company has taken some measures to counter these risks, it’s prudent for risk-averse investor to understand the risk-reward tradeoff. This report reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion about investing in Iron Mountain.
Top 10 Big-Dividend REITs: Contrarian Value
2020 was a challenging year for Real Estate Investment Trusts (“REITs”). The sector (as measured by (XLRE)) was down ~3.% (and that includes dividends) as compared to +17.8% for the overall S&P 500 (SPY). And the performance was even more sharply divergent by REIT subsectors (for example, retail REITs performed even worse) versus the tech-heavy Nasdaq (QQQ) for example which gained 48.3% for the year. Obviously, the social-distancing aspects of the terrible coronavirus pandemic had a big impact on market performance, and with the continuing rollout of vaccines there are some reasons for increased optimism. However, the story is much deeper and much more nuanced than that. In this report, we countdown our top 10 big-dividend REITs (starting with #10 and concluding with our top #1 idea), including our careful consideration for current market conditions combined with company-specific opportunities.
Attractively Priced 6.8% Yield REIT CEF (MOPAY)
If you are an income-focused contrarian investor, you may be looking for opportunities among real estate securities, considering this has been one of the worst performing sectors of 2020 and it is know for its attractive dividend yields (and especially considering the potentially positive impacts of the recent coronavirus vaccines). In this report, we review an attractively priced real estate Closed-End Fund (“CEF”) that is able to offer investors a compelling 6.8% yield (paid monthly—MOPAY) thanks to its share price discount versus its net asset value (NAV) and its prudent use of leverage (~23.98%), among other important characteristics.
New Options Trade: High Upfront Income, Attractive Chinese E-Commerce
Shares of this Chinese, small-cap, “brand-focused,” e-commerce company trade in the US (on the Nasdaq) as an ADR (American Depositary Receipt), and they are currently priced attractively, especially considering the continuing powerful growth expectations for online commerce and for this company in particular. Rather than purchasing shares outright, this article review an attractive options trade that generates high upfront income (that you get to keep no matter what) and gives you a chance of picking up shares of this attractive business at an even lower price (if the shares get put to you before expiration on January 15th). We believe this is an attractive trade to place today and potentially over the next few days (as long as the underlying share price doesn’t move too dramatically before then.
Attractive 4.0% Dividend Yield Industrial REIT
This report reviews an attractive industrial REIT that will continue to benefit from e-commerce trends. It has maintained or increased its dividend for 29 years in a row and it currently yields ~4.0%. It has the highest occupancy and rent collections in the industrial REIT space (tenants include some of the largest well-know investment grade companies) and the valuation is attractive. It also has multiple growth catalysts. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion on why it may be worth considering if you are a long-term income-focused investor (that likes growth too).
Safe, Stable, 4.7% Yield REIT, Attractive Sub-Industry
In recent quarters, while real estate sub sectors such as office and retail have struggled as a result of the pandemic, selective industrial REITs have emerged as outperformers primarily because of the growth in e-commerce. For example, the specific industrial REIT we review in this article has consistently expanded its asset base since its IPO in 2011 and is well placed to grow in the years ahead (through planned acquisitions and rental accretions). It also offers a 4.7% dividend yield, paid monthly. In this report, we analyze the company’s income profile, growth as well as dividend prospects and finally conclude with our opinion on investing.