Industrial REITs have sold off particularly hard this year, but one name in particular is attractive if you can handle its strategy and risks relative to industrial REIT peers. In this report, we review this particular REIT’s business, industry outlook, valuation, dividend and risks. We conclude with our opinion on investing in this 4.4% dividend yielder.
6.1% Yield Blue-Chip Stock: Risks Versus Rewards
As the share price of this large-cap blue-chip stock sits near its 52-week low, its dividend yield (currently 6.1%) sits near a decade-long high. What’s more, the valuation is compelling if you can get comfortable with the big risk factors it currently faces. In this report, we review the business, valuation, dividend safety and risk factors, and then conclude with our strong opinion on investing.
Top 10 Big-Dividend Preferred Stocks (6% to +10% Yields)
Some investors are happy to know that interest rates on top savings accounts have risen from approximately 0% in 2020 to over 1% (in some cases) in 2022. However, when you factor in inflation of over 8% (CPI is 8.5%) you’re still losing money (or at least losing buying power). For those willing to move further out on the income-investment spectrum, preferred stocks can offer a compelling combination of higher income and lower price volatility (as compared to common stocks). In this report, we rank our top 10 big-dividend preferred stocks, counting down from #10 and finishing with our #1 top idea.
9.6% Yield Preferred Shares: Discounted Price, Strengthening Conditions
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.
Popular mREIT: Absolute Junk, 2 Better Big-Dividends
The popular mortgage REIT we review in this report offers huge dividends on both its common and preferred shares. And while some investors are drawn to these big income payments, we believe it is an absolute junk investment. In this report, we explain why it should be avoided, and then offer two better big-dividend opportunities for you to consider.
Big-Dividend BDC: Distinct Growth Strategy
Skip UTG: Two Better Big-Dividend CEFs
Closed-End Funds (or CEFs) are often an income-investor favorite because they can pay large distribution yields. However, CEFs come in many different shapes and sizes. One very popular CEF, The Reaves Utility Income Fund (UTG), has performed very well this year, but in this article we argue that it’s time to stop adding money to UTG because there are currently better CEF opportunities available. We will review two specific attractive CEFs (that we currently prefer over UTG) in this report.
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.
Medical Properties Trust: 50 Big-Dividend REITs, Down Big
With interest rates higher this year, big-dividend REITs have been hit hard, particularly those with higher levels of debt. And one name that just sold off even harder (following its earnings announcement on Wednesday) is Medical Properties Trust (MPW). MPW provides capital to hospitals, has a 7.2% dividend yield and has increased its dividend every year for the last nine years in a row. In this report, we compare MPW to 50 other big-dividend REITs (in terms of a variety of financial metrics) and then dig into its business model, current valuation, dividend safety, the four big risk factors it currently faces and finally conclude with our strong opinion on investing.
AGNC: Book Value Down, 12.1% Yield
Mortgage REIT AGNC Investment Corp (AGNC) announced quarterly earnings on Monday, and not surprisingly—book value took a hit (amongst all the interest rate and agency-spread movements). The yield has now mathematically climbed to over 12%, and some investors are left wondering if the shares are worth owning or if the risks are too great. In this report, we review the business, the outlook, valuation and risks, and then conclude with our opinion on investing.
Triton: Big-Dividend Common and Preferred Shares
With dividend yields ranging from 4.4% to 8.2%, shipping container leasing company, Triton International (TRTN), presents some interesting investment opportunities for income-focused investors that also like the potential for share price appreciation. This report reviews the company, its competitive advantages, current market conditions, valuation, risk factors and then concludes with our opinion about investing in the common shares as well as the five series of preferred stock.
Two New Purchases: Income Equity Portfolio
We just made two new purchases in our Income Equity Portfolio, one industrial REIT and one old-school blue-chip tech company. Both offer healthy dividends and attractive share price appreciation potential. As a reminder, the Income Equity Portfolio is outperforming the S&P 500 by double digits this year, and we’re using the broader market wreckage to pick up some low-priced shares.
Intel Is Ugly: So Are AMD, Nvidia and Micron
Top semiconductor businesses (including Intel, Micron, Nvidia and AMD) have a few things in common, such as strong margins and ugly year-to-date performance. However, their underlying businesses and growth rates are very different. This report focuses on Intel, the leader in PC and server chips, and then compares it to competitors Nvidia, AMD and Micron. We conclude with our opinion on investing.
Realty Income: 50 Big-Dividend REITs Compared
Realty Income (known as the monthly dividend company) has been a safe haven this year as markets have declined sharply but Realty Income’s share price has remained roughly flat. However, some investors are left wondering if Realty Income still offers an attractive valuation or if it’s time to shift new investment dollars elsewhere. We offer our opinion on the relative attractiveness of the shares, including a discussion of business strategy, the risks and the current valuation as compared to 50 other big-dividend REITs.
Honeywell: Growth-Value Debate, Big Dividend Growth
In the “olden days,” it was widely accepted that value stocks outperform growth stocks over the long-term. But as central bankers have gotten increasingly involved in the last few batches of market cycles, growth stocks (supported by easy money) have been dominating—until this year. And if the US Fed’s now increasing interest rate trajectory is any indication, value stocks may again return to extended periods of outperformance. Shares of diversified industrial company, Honeywell (HON), fall into the value stock category, and may be worth considering. This report reviews Honeywell’s business, its valuation and risks, and then concludes with our opinion on investing.
Top 10 Big Dividends: REITs, BDCs, Bond CEFs, Energy and More (4-10% Yields)
When it comes to income investing, investors have a lot of choices. And considering the current macroeconomic environment (inflation, the fed, market declines, recession risks) many investors are left flummoxed concerning their next move. In this report, we share our top 10 big-dividend opportunities, including two ideas from each of the following five categories: REITs, BDCs, Bond CEFs, dividend-growth stocks and energy investments. The yields range from 4% to over 9%, and we share some high-level macroeconomic perspective before we get into the countdown.
Verizon: 5.2% Yield, 4 Risks Worth Considering
The share price of steady dividend-growth stock, Verizon, is still down more than 11% following its latest earnings release. And the 5.2% dividend yield is increasingly tempting for many income-focused investors (especially in our current volatile market). But the outsized dividend doesn’t come without risks. In this report, we review Verizon’s business, its dividend safety, the current valuation and four big risks the company currently faces. We conclude with our opinion on who might want to consider investing.
STAG's 4.4% Yield: 3 Big Risks Drive Price Lower
If you are an income-focused investor, you probably like investing in REITs for their often big, steady, dividend payments. However, you may have noticed that following years of strong outperformance, the industrial REIT sector (including monthly-dividend payor, STAG Industrial (STAG)) has recently sold off hard. This report reviews STAG’s business, including information on the 3 big risk factors contributing to its relatively lower valuation multiple—as compared to industry peers (especially following the recent big Industrial REIT sector sell off), and then concludes with our opinion on investing.
Owl Rock’s 9.1% Yield: Credit Spread Risks, Rewards
Business Development Companies, or BDCs, make the loans that big banks generally will not (or cannot, due to regulatory rules). However, like big banks, BDC bottom lines usually come down to simply net interest margins (i.e. the margin between the rate they borrow at and the rate they lend at), assuming they can survive any macroeconomic turmoil, considering they have much higher sensitivity than do the big banks. Interest rates are trending sharply higher (as the Fed fights inflation), and this can be very good (or very bad) for big-dividend BDCs (like Owl Rock). In this report, we share our opinion on whether Owl Rock’s big 9.1% dividend yield is attractive and worth considering, or whether the risks are simply too great and if investors should avoid the shares.
Attractive 7.1% Yield BDC: Monthly Dividend, Compelling Valuation
The well-managed, blue-chip, Business Development Company (“BDC”) we review in this report currently trades at a compelling price, it offers a healthy dividend, and it sits at an attractive spot in the current business cycle. But is it worth investing? This report reviews all the details and then concludes with our opinion on investing.