W.P. Carey (WPC) has undergone major portfolio restructuring including its significant acquisition of Corporate Property Associates 17 Global (“CPA:17”) in October 2018, and its increased M&A and disposition activity, in general. And while this activity is creating some operating turbulence in the near-term, management believes its inorganic growth strategy will be accretive to AFFO/share in the long-term. This article considers the various strengths of WPC, its dividend safety, valuation, and then concludes with our opinion about whether WPC’s current operating dynamics are a red flag or if this big-dividend REIT is worth considering for investment.
Blue Harbinger Portfolio Rebalance
We have made a significant amount of “rebalancing” trades throughout our portfolios. Most of the changes revolve around reweighting current holdings for diversification and risk management purposes. However, we have also added several new positions, as well as exited a few positions altogether. As a reminder, all of our investment portfolios are long-term in nature, so these types of large portfolio adjustments are rare. However, we do complete them from time-to-time in order to optimize our expected returns and income relative to risks, and in accordance with the long-term objectives of the strategies.
HCP's 5.0% Yield: Increasingly Safe and Worth Considering?
HCP Inc. (HCP) was forced to dramatically restructure its portfolio over the last several years as a distressed sub-industry created major challenges for one of its business segments. However, HCP is now emerging as a much healthier healthcare REIT going forward. This article analyzes the corrective actions taken by HCP to address its operating challenges, and then considers the health of the business, valuation, risks, dividend safety, and concludes with our opinion about whether income-focused investors should consider HCP for stable long-term results.
Ventas’ 5.1% Yield: Too Much Risk for This Popular REIT?
Ventas Inc. (VTR) has significantly restructured its portfolio in the last two years to address a downturn in operational performance. The adverse impacts of these changes are expected to continue through 2019. This article analyzes the various challenges that have brought Ventas to its current position, and then considers the health of the business, valuation, risks, dividend safety, and concludes with our opinion about whether Ventas is an attractive choice for investors seeking stable long-term returns.
Holdings & Performance Update: Impressive YTD Gains & Income Continue
All Blue Harbinger strategies delivered healthy gains in April, thereby extending their long-term outperformance. The strategies are positioned prudently to achieve their long-term goals, ranging from attractive income to powerful long-term growth. This report reviews performance (including specific holdings) and where we’re seeing the best opportunities going forward. Importantly, don’t get greedy—this year’s gains have been nice, but stick to your disciplined long-term strategy.
Welltower’s 4.6% Yield: Worried The Valuation Is Too High?
Welltower Inc. (WELL) has been consistently delivering sustainable and reliable growth to shareholders through its differentiated strategy and systematic capital allocation. However, it’s currently trading at a premium valuation. This article analyzes the various strengths of the company which have led it to being the top player in its industry, and then considers the health of the business, valuation, risks, dividend safety, and concludes with our opinion about whether long-term income-focused investors should be concerned about Welltower’s price getting too high relative to its value.
Teekay Offshore: 10.7% Yield Preferred Shares, On Sale or In Danger?
The S&P 500 hit record highs this past week, as growth and tech stocks continue their impressive velocity higher. However, not all stocks are flying high, and certain value opportunities are increasingly interesting. This week’s Blue Harbinger Weekly provides a quick review of the performance of our holdings, as well as our opinion on the 10.7% yielding preferred shares of Teekay Offshore (TOO.B) which are currently trading at a discounted price of $19.82 per share.
Sector Sell-Off Wave Creates Attractive High Income
We’re sharing a new high-income-generating options trade. Last’s week’s volatility created a significant dispersion in sector performance, and the name behind this trade was one of the more extreme movers. If shares of this big-dividend REIT fall further, we’d be happy to buy at an even lower price. And we get to keep the attractive premium income this trade generates, no matter what.
Medical Properties: Interesting 5.8% Yield Following Sell-Off in REITS, Healthcare
This week’s Blue Harbinger Weekly highlights the performance of various market sectors and styles, including the sharp sell-off in REITs and healthcare. We also share the weekly performance of the individual holdings within our Income Equity and Disciplined Growth strategies, including a brief review of a couple big movers. Finally, we share our opinion on the attractiveness of big dividend REIT Medical Properties Trust (5.8% yield), which unexpectedly sold-off more than 8% just last week.
A Tempting +8% Yield, Paid Monthly
This 8.3% yield fixed income closed-end fund (“CEF”) is currently trading at a relatively attractive price, and it is worth considering if you’d like to own some “non-stock-market” exposure within your investment portfolio; specifically, it can help diversify away risks as well as keep your monthly income high.
Sabra REIT’s 9.2% Yield: Moved by Low Rates and Healthcare Headwinds
Here is a look at the market’s continuing strong performance this year (the S&P 500 is up 16.6%). REITS are one sector that’s been particularly strong (XLRE is up 19.1%) as the Fed’s new found dovish low interest rate posture helps REITs which generally rely on borrowing to grow. On the other hand, healthcare is one sector that has lagged (XLV is up only 4.2%) as this diverse sector faces varying specific pressures. Sabra Healthcare (SBRA) is a big dividend REIT that faces its own company-specific pressures as well as the headwinds of being a healthcare related company and the tailwinds of being a REIT. This week’s Blue Harbinger Weekly reviews the market’s performance, the performance of our portfolio holdings, and briefly reviews a few specific names, one of which is our opinion on Sabra Healthcare’s tempting 9.2% dividend yield.
ABB: This 4.3% Yield, Cash Rich, Industrial Automation Company Is Worth Considering
If you are looking for an attractive dividend yield and the potential for healthy price gains, then this industrial automation company is worth considering. In particular, the current valuation is attractive (we expect multiple expansion and earnings growth), the company has significant competitive advantages, and it generates tons of cash to support its growing dividend payments, attractive share repurchases and important capex.
Holdings & Performance Update: March Adds to Powerful Q1
All Blue Harbinger strategies delivered healthy gains in March, thereby extending their long-term outperformance. The strategies are positioned prudently to achieve their long-term goals, ranging from attractive income to powerful long-term growth. This report reviews performance (including specific holdings) and where we’re seeing the best opportunities going forward. Most importantly, keep perspective. Foolish investors panicked and sold out of fear in Q4 thereby missing out on Q1’s fantastic returns. Don’t get greedy and make the opposite mistake now. Stay disciplined.
General Dynamics: Big Upside for this Socially Irresponsible Dividend Champion?
General Dynamics is increasingly attractive. Both revenues and earnings per share continue on an upward trajectory, yet the share price is down, thereby making this dividend champion look like a steal from a valuation perspective. This article reviews the business, the valuation, and the outlook, as well as an explanation for the discounted share price (including the “social irresponsibility” factor, among others) and concludes with our opinion about investing in this blue chip 2.4% yield global aerospace and defense company which has increased its dividend for 27 consecutive years running.
A Powerful Growth Stock Worth Considering
We write a lot about income investments, however we also like to invest in powerful growth stocks, as well, because they add important diversification to an investment portfolio, and they can help keep your nest egg growing. This article focuses on one of the fastest growing companies in the US in terms of this year and next year’s sales growth, at scale. We provide an overview of the company’s attractive qualities, as well as a review of the common pitfalls to watch out for when investing for powerful long-term growth and capital appreciation.
Tax-Free Muni CEFs: Market Update & Opportunities
This is a guest article from Yield Hunting. The article highlights some top muni closed-end-funds (“CEFs”). If you don’t know, you invest in muni CEFs to generate steady streams of tax-free income and compound it year after year. The non-quantitative benefit of muni CEFs are that natural downside hedge they can offer, especially on the high quality funds (non-high yield).
Boeing? Maybe If It Falls Another 5 to 10%
From time to time we like to share income-generating options trade ideas. Today, Boeing presents an interesting opportunity in light of heightened volatility and fear related to its second tragic 737 MAX plane crash in the last 5 months. Even if you don’t participate in this particular trade, it may help you generate future trading ideas of your own. Without further ado, here are the details…
Triton’s New 8.5% Yield Preferred Shares, Not Bad, But…
If you’re an income-focused investor, you might be interested to know intermodal shipping container company, Triton International, just issued some very attractive 8.5% yield preferred shares this week. And as many of our readers know, we’ve written about the common shares of Triton, and we’ve also had success selling income-generating put options on the common shares. But if you’re looking for high steady income (and less volatility) than the 6.5% yield of the common shares, consider this before you jump headfirst into these compelling new 8.5% yield preferreds.
This Attractive Contrarian Healthcare CEF Yields 10%, Pays Monthly
If you are an income-focused contrarian investor, closed-end funds (“CEFs”) can be a corner of the market ripe with interesting opportunities. This article focuses on an attractive high-income CEF in the healthcare sector—a sector with plenty of long-term growth opportunities, but currently somewhat out of favor considering it has underperformed other sectors so far this year.
Simon’s 4.7% Yield: Despite Cloud of Negativity, It’s Worth Considering
Simon Property Group (SPG) offers an attractive 4.7% yield and a compelling valuation. However, it continues to face pressure from market fearmongers and negative sector narratives. This article reviews the cloud of negativity surrounding Simon, and then considers the health of the business, valuation, risks, dividend safety, and concludes with our opinion about why Simon may be worth considering if you are a long-term income-focused investor