Pfizer (PFE) has a reputation for being a blue-chip pharmaceuticals company. However, its recent performance has been weak as the overall healthcare sector (and drug companies, in particular) have under-performed the market (President Trump has taken over the fight to reduce drug costs for investors). And Pfizer in particular has been undergoing some significantly risky portfolio restructuring. As a result, Pfizer’s dividend yield (4.2%) is now significantly higher than normal (as the price has fallen), especially for a Dow Jones stock. This article considers whether Pfizer is currently an attractive big-dividend blue chip, or a dangerous value trap.
Deeply Undervalued, Income Generating (5.8% Yield), Blue Chip Opportunity
This biopharmaceutical company is engaged in research, development and marketing of biotech drugs. In this article, we analyze its business mix, growth and income prospects, balance sheet, risks and finally conclude with our opinion on whether the company’s stock offers an attractive balance between risks and rewards.
New Options Trade: ABB Ltd, High Income Opportunity on a Big-Dividend Payer
ABB Ltd is an attractive, big-dividend (4.3% yield), industrial automation company that operates out of Switzerland and trades on the New York Stock Exchange. And the options market is currently offering some very attractive premium income on the shares thanks to an unsurprising dose of shortsighted market participants. This report explains why we like the company and why we like the trade. More specifically, we believe this is an attractive trade to place today, and potentially Tuesday and/or Wednesday, as long as the share price doesn’t move too dramatically before then.
You’re Too Old to Make This Mistake (Monthly Performance Update)
If you’d have been invested in 100% “aggressive growth” stocks over the last two months (for example, young software companies with very high sales growth), you’d have gotten absolutely slaughtered. A bloodbath. Whether you call it a “rotation” or a long overdue “correction,” is irrelevant. The mistake we are talking about is, of course, the failure to prudently diversify your portfolio. We’re not suggesting anyone be a “closet index fund,” but for goodness sake, don’t put all your eggs in one basket. In fact, don’t even put most of them in one basket. You’re too darned old for that crap. And if you don’t know what we’re talking about, for your reference, check out these 7 Deadly Sins of Long-Term Investing (too many eggs in one basket is on the list).
Top 7 Preferred Stocks: 7% Yields, and Up (Members-Only)
In this members-only report, we provide all the details for our top 7 big-dividend preferred stocks. And as mentioned previously, if you like to earn high income on your investments, and you are frustrated with artificially low interest rates (thanks to the Fed’s meddling), you might consider preferred stocks. They offer compelling high yields, and less volatility risk than many other high yield opportunities. This week’s Blue Harbinger Weekly shares our top high yield preferred stocks (we currently own 6 of the top 7). Without further ado, here is the full (members-only) report.
This 9.1% Yield Preferred Stock Is Attractive and Worth Considering
This attractive company is nearing the end of a very large strategic capital expenditure program, and on a trajectory for very strong EBITDA growth. And its preferred stock offers strong stable income thanks to the company’s structure. This article provides an overview of the company and then considers the potential returns, growth prospects, developments and risks. Overall, if you are an income-focused investor, this one is absolutely worth considering for a spot in your prudently diversified long-term portfolio.
Options Trade: Energy Transfer, Attractive Premium Income
Energy Transfer is an attractive, big-distribution midstream energy company, and the price is significantly too low (in our view) because it has been incorrectly lumped in with other energy stocks whose near and intermediate term prices are more dependent on energy prices (ET has stable long-term contracts based on volume, not energy prices). Further, the recent volatility has created an attractive high-income-generating opportunity in the options market. This write-up shares the specific details on this attractive income-generating trade.
Blue Harbinger Weekly: Attractive Opportunities as Value Stocks Heat Up
A dramatic shift is taking place in the market as value stocks continue to heat up, and it’s creating some attractive opportunities, so long as you stay disciplined and focused on your goals. This week’s Weekly shares some specific attractive opportunities, as well as our advice on how to win in this market
Teekay Offshore Preferred Shares: 13% Yield, Big Capital Structure Risks, Here’s What You Need to Know
Teekay Offshore Partners, LP is a leading provider of storage, production and transportation assets to the off-shore oil & gas industry. It’s preferred shares (TOO.B) offer an appealing dividend yield and stable cash flows, however uncertainties around future capital structure are worth considering. In this article, we analyze its business model, balance sheet, dividend potential as well as key risks and finally conclude with our opinion on whether the company’s preferreds offer an attractive balance between risks and rewards.
Top 5 Big Safe Yields (Energy Sector): Blue Harbinger Weekly
The energy sector has been volatile (most recently thanks to the Saudi Arabian oil field attacks and associated fears), and from volatility comes opportunity. But perhaps more important to many investors, there are a variety of big safe yields currently available in the volatile energy sector. This week’s Blue Harbinger Weekly reviews our Top 5 big safe yields within the energy sector.
Attractive 6.1% Yield Energy Company (We Own It)
After a difficult period involving financial and operational reorganization, this energy company has emerged financially stronger and set to grow its already attractive dividend. This article provides a background on the company, analyzes its recent past, dividend potential and finally concludes with our opinion on who might want to consider investing.
Options Trade: HCP’s Volatility Creates High Income Opportunity
We are sharing an attractive income-generating options trade that exists because of current market conditions. Specifically, after completing a major portfolio restructuring in recent years, healthy-dividend healthcare REIT HCP is now well-positioned for strong income in the years ahead, but has recently sold-off thereby creating an attractive income-generating options trade opportunity. We believe this is an attractive trade to place today, and potentially tomorrow, as long as the share price doesn’t move too dramatically before then.
Blue Harbinger Weekly: Recession Fears, Big Market Rotation
Investors have been bemoaning the extended rally by growth and momentum stocks for years considering value has been meaningfully underperforming (value stocks are still up a lot, just not as much as growth). However, there’s been a significant market style rotation going on in recent weeks whereby the fastest “revenue growers” have sold-off hard. Pundits have also recently been obsessed with the idea of a coming recession, and view the rotation as the beginning of the end (or as chicken little would say, “the sky is falling.”) This week’s Weekly reviews the rotation, identifies attractively priced opportunities, and shares some common sense wisdom on the current market environment.
Energy Transfer's 8.8% Yield: Solid Income Potential? Improving Fundamentals?
Some investors view Energy Transfer, LP (ET) as a stable, cash flow generator. But are is it? And are the fundamentals actually improving? If you don’t know, it’s a Master Limited Partnership (MLP) that operates energy oriented transportation, storage and midstream assets in major production basins in the United States. This article provides a background on the company, analyses its cash flow generation, balance sheet, dividend potential and finally concludes with our opinion on whether investors should take advantage of the company’s high dividend yield.
Options Trade: WP Carey REIT, Attractive Income
REITs have been on fire this year, as you can see in the following chart. REITs (XLRE) are up more than 30%, while the S&P 500 is up just over 20%. And popular, 4.6% dividend yield, WP Carey REIT is up an impressive 42% year-to-date. For those of you who wish you’d have bought into WP Carey at a lower price (and for those of you who may want to buy more), there is another way, besides just sitting and waiting for a sell-off so you can “buy low.”
Blue Harbinger Weekly: The Fed’s Narrative or The President’s?
This week’s Weekly doubles as our monthly performance update. We first compare the dueling narratives on interest rates from the Federal Reserve versus the President, and then consider whether your investments where impacted by your decision to believe one story or the other. Next we review the recent performance of our three investment strategies (including every single position). All three strategies continue to deliver market-beating performance and deliver high income for investors. We also share several attractive investment ideas.
Royal Dutch Shell: Stable Dividend (6.7% Yield) in a Volatile Sector?
Royal Dutch Shell (RDS.B) has a consistent history of paying dividends despite swings in oil and gas prices. The company has successfully used balance sheet and cost containment to sustain dividends during difficult times. This article provides a background on the company, analyzes its cash flow generation, dividend potential and finally concludes with our opinion on whether investors should add exposure to the company.
Top 5 Big Yields Worth Considering (BDCs, CEFs and REITs)
STAG Options Trade: Fear-Driven Sell-Off, High Income Opportunity
As we recently wrote about in detail here, Stag Industrial (STAG) pays big monthly dividends (5.1% yield) and it has “more octane” than other REITs. The “octane” generally makes Stag shares go up more when the market is strong, healthy and calm, but down more (compared to other REITs) when the market sells off. And the market sold-off hard on Friday, and Stag’s shares were down a large 4.75%, thereby creating this very attractive high-income-generating options trade opportunity.
Blue Harbinger Weekly: With Volatility Comes Opportunity (Here’s a Few to Consider)
Trade War tensions escalated Friday. So did market volatility. The S&P 500 fell sharply. This week’s Weekly reviews a few of the biggest movers on our watch last week. Specifically, two stocks we own that were up big (despite the sell-off) and three names (including a couple big-dividend payers) that sold-off thereby creating attractive investment opportunities. We also review our two most recent income-generating options trade ideas—both of which we continue to believe are quite attractive now.