Sticking with our market cycle / booming economy theme, this week's investment idea covers an attractive REIT with an above average dividend yield that continues to have legs. And while we believe this opportunity has more upside, it'll eventually slow when the market cycle slows. So to those of you who choose to ride this one higher--keep an eye on it because when the market cycle does eventually turn...
Attractive High-Yield Contrarian Opportunity
Realty Income: Big Monthly Dividend, Struggling Share Price
Realty Income (O) pays a big monthly dividend (+4.7%), but its price is down, and many investors are not happy. The company has a strong track record of success since it was first listed on the NYSE in 1994, but what has Realty Income done lately? Considering the horrible 1-year performance for the Real Estate sector, we intend for this to be the first in a series of REIT articles in the coming weeks. This article reviews Realty Income’s financial position, its current valuation, and our outlook for its future performance.
Are We Due For A Market Correction?
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?
Off the Beaten Path: High-Income Ideas
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.
4 Compelling High-Income CEFs
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.
We Just Bought this Big-Dividend Stock
A big dividend, wide moat, and compelling valuation. That's how we'd describe the stock we just purchased. We funded this purchase with the proceeds from our recent highly profitable sale of Caterpillar (we sold our CAT shares last Friday for a +110% gain after holding them for only 19-months). This article shares our thesis for why we just invested in this new highly-attractive contrarian 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.
Watch List: 3 Attractive Dividend Stocks
We’ve been searching for new buying opportunities, and we just added 3 dividend stocks to our watch list. This article provides a high-level overview of each of these stocks and why we like them. We haven’t purchased any of them yet, but there could be new purchases coming soon. We're excited about our current holdings (and our market-beating track record), but we could trim or sell a couple positions to make room for even more attractive new opportunities soon.
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!
Updated Heat Maps: Attractive Opportunities in Focus
The following tables rank the constituents of the Dow Jones by yield, list the 30 highest-yield stocks in the S&P500, and provide performance details for 50 different sector, style and asset class ETFs. We use this information to provide an overview of the current state of the market, and we highlight several attractive investment opportunities.
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!
Top 8 High-Yield REITs Worth Considering
As contrarian income-investors, we are seeing a variety of interesting investment opportunities among real estate investment trusts (“REITs”). The group has been beat up over the last year as investors fear the possible negative impacts of rising interest rate expectations, and they’ve shunned most REITs in favor of higher growth sectors of the market (such as aggressive growth technology stocks).
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.
Don't Chase The Highest Yield, Consider High Quality Growing Yield
Many investors make the mistake of believing a higher yield is always a better yield. At Blue Harbinger, we believe in owning high quality yields, and we especially like it when a high quality yield has the health to keep growing. This article highlights an attractive, healthy company that offers a high quality yield that is expected to grow.
We Own This REIT, And It’s Still Going Strong
Our Current Retail Exposure, Plus An Interesting Investment Idea
As the “Death of Retail” narrative grows, and investors fear that online retailers (like Amazon) will put all “brick and mortar” stores (like Sears, Macy’s and shopping malls) out of business, we are starting to see some interesting opportunities. This article reviews our current exposure to “brick and mortar” retail, and then shares an interesting investment idea for brave contrarian investors to consider.
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.