Ventas (VTR) is a big-dividend healthcare REIT, and the shares are down 27% in the last 2 months. Near-term headwinds seem to have caused the price to detach from the long-term value, but is there still more pain to come? In this report, we analyze the company’s income profile, current portfolio trends, market dynamics, dividend prospects and finally conclude whether the REIT’s units offer an attractive balance between risks and rewards.
Industrial REIT: 4.4% Yield, Attractive Price Appreciation Potential
This stable, growth-oriented, industrial REIT, is trading at an attractive discount. Not only does it have long-term leases with investment-grade tenants at attractive rentals, but it’s also offering an attractive 4.4% dividend yield—significantly higher than peers. In this report, we analyze the company’s income profile, growth and dividend prospects, and finally conclude with our opinion about investing in this attractive opportunity from a risk-versus-reward perspective.
New Options Trade: Very High Income and Growth, Following Sell Off
Concentrating all of your nest egg in a narrow range of investment types can result in unnecessary risks. As such, we like to share income generating opportunities from a range of strategies. The option trade we share today generates a huge amount of upfront income and is based on an “Income via Growth” stock. The shares are very attractive over the long-term, but they just sold off thereby making this trade timely and compelling.
New Options Trade: Royal Dutch Shell, Attractive High Income
Royal Dutch Shell (RDS.B) is an integrated oil & gas company that offers a very safe dividend. The yield is currently a larger-than-normal 6.5% because the share price has underperformed the strong fundamentals of the business. The share price was down again last week (and it was down the whole month of November while the overall market sailed higher). This article describes an attractive income-generating options trade on Royal Dutch Shell that we believe is compelling to place today (and potentially over the next few days) as long at the price of RDS doesn’t move too dramatically before then.
Growth Stocks Getting Scary, Attractive Dividend Stocks on Sale
This is our monthly performance update and holdings review. We share the continuing strong performance of our three investment strategies, including the performance of every single position in each strategy. We also highlight several particularly attractive investment opportunities, right now. The theme of this report is that the valuations of growth stocks are starting to get scary expensive, whereas a bunch of attractive dividend stocks just sold-off and are now offering increasingly attractive investment prices.
Brookfield Property REIT: Big 6.9% Yield, But Know the Risks
If you are looking for a healthy, growing dividend, you may be considering Brookfield Property Partners LP (BPY) (and/or Brookfield Property REIT (BPR)—if you prefer to invest in the REIT vehicle). Not only does the dividend appear attractive, but the shares seem to be trading at a significant discount to NAV. However, concerns over its relatively high debt continue to remain an overhang on the stock. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion about whether BPY (and/or BPR) is worth considering for a spot in your long-term income-focused portfolio.
New Options Trade: Healthpeak Properties, Attractive High Income
We are sharing an attractive income-generating options trade that exists because of current market conditions. Healthpeak Properties (PEAK) is a healthcare REIT (formerly known as HCP) that is wisely and proactively taking steps to reduce its exposure to troubled senior housing through its new joint venture and focus on private pay. The shares sold off in the last month due to the uncertainty of the new joint venture announcement (as well as the Fed’s interest rate messaging change), which has created a very attractive opportunity. We believe this is an attractive high-income trade to place today, and potentially over the next few days, as long as the share price doesn’t move too dramatically before then.
Oxford Square: 15.5% Yield for Brave Contrarians
Oxford Square Capital Corp (OXSQ) offers a big 15.5% yield, but you need to be a brave contrarian if you’re going to invest. This business development company (BDC) invests in syndicated bank loans and both equity and debt tranches of collateralized loan obligations (CLO); and the shares have been dragged sharply lower because of its exposure to underperforming market segments including healthcare, software and high yield credit in general. This article provides a background on the company, analyzes its portfolio and finally concludes with our opinion on whether it’s worth risking some of your capital on this huge yield with significant share price appreciation potential.
Options Trade: Ventas Bumpy Road, High Upfront Income
Healthcare REIT Ventas (VTR) continues to search for its footing and has declined ~22% in the last month. Investors didn’t like the October 25th earnings call as the company lowered its senior housing (“SHOP”) guidance. We warned of this danger facing Ventas back in late June, and have avoided investing in the stock. However, we’re now sharing an attractive, new, income-generating, Ventas options trade. We believe this is an attractive trade to place today, and potentially over the next few days, as long as the price of Ventas doesn’t move too dramatically before then.
4 Big Dividends That Have Gotten Less Expensive: Energy Transfer (ET), New Residential (NRZ), Ventas (VTR), Oxford Square (OXSQ)
The market continues to reach new all-time highs, and our investment portfolios do too. However, a handful of popular big dividend paying equities have gotten particularly less expensive in recent weeks. This week’s Weekly provides a brief update on all four of them, and whether we believe they are worth investing or avoiding altogether.
Strong 5.1% Dividend Blue Chip, Trading at a Discount
If you are looking for a big healthy blue-chip dividend yield with significant price appreciation potential, this global chemicals company is worth considering. Specifically, it is set to generate significant amounts of cash flow over the next two years, it trades at nearly 11% 2020 Free Cash Flow yield, it offers a healthy 5.1% dividend, and it trades at a significant discount to its peers. In this report, we analyze the company’s business mix, cash flow and income prospects, and finally conclude with our opinion on whether the stock offers an attractive balance between risks and rewards.
REITs Very Bad Week
Real Estate Investment Trusts (REITs) just had a very bad week. Many popular REITs (such as HCP, DLR, WELL and VTR) were down more than 7%, while the S&P 500 was up almost 1%. And importantly, there are a few real time learning opportunities here. Chicken little thinks the sky is falling, arm-chair quarterbacks are blaming the Fed, contrarians says this was long overdue, and asset allocators are whining that these are just tremors before the “big one” whereby the market’s tectonic plates are about to shift. So what do you do?
Union Pacific: Despite New Risks, Attractive Cash Flows, Dividends, Price Appreciation Potential
Despite a variety of headwinds (such as a declining coal business, a challenged auto industry, tariffs, unexpected competition from trucking, rising debt levels and network congestion), Union Pacific (UNP) continues to generate healthy cash flows, whereby the excess is prudently returned to shareholders via growing dividends and share repurchases. Plus, based on growth expectations, the shares have steady and continuing upside potential. This article reviews the business, risks, strategic initiatives, cash flows and valuation, and then concludes with our opinion about investing.
New Options Trade: P&G Shares Expensive, Yield Is Ugly Low
The market has been strong this year, but dividend yields on popular blue-chip stalwarts have been in decline (as price rises, yields mathematically fall). P&G's has clearly improved (and is now firing on all cylinders), but its valuation and dividend yield are not appealing relative to the sector and its own trading history. This report shares an attractive, Procter & Gamble, income-generating options trade.
More Gains Ahead: Reasonable Index Levels, Attractive Stock-Specific Opportunities
It may feel like the market is rising to extreme levels, but index valuations are reasonable, and highly attractive stock-specific opportunities persist. This is our monthly performance update whereby part 1 shares our overview of current market conditions, and part 2 reviews the continuing powerful long-term gains of our three investment strategies (they were all up again over the last month), as well as a performance review of every individual holding (we currently have 65 individual positions across three separate portfolios), and more details on some specific highly-attractive high-income opportunities.
New Options Trade (Income-Generating): EastGroup Properties Has Been On Fire
EastGroup Properties (EGP) is an industrial REIT, and it has posted incredible performance in recent years (its price is up 138% since the start of 2016, and that is excluding its big dividend payments). And considering its performance, the options market is currently offering attractive premium income on the shares thanks to some perhaps over-confident “herd-following” investors. We currently own shares of EGP (we have since 2016), and this report explains why we like a specific income-generating EGP options trade.
Top 5 Big Dividends: 6% to +9% Yields (Contrarian Value Edition)
This is a continuation of our free report titled “Top 10 Big Dividends (Contrarian Value Edition),” except this members-only version contains all the details of our Top 5. The yields on the top 5 range from 6% to over 9%, and we currently own all 5 of them. And as a reminder, despite the strong performance for the S&P 500 so far this year, if you are an income-focused value investor, there are still plenty of attractive big-dividend contrarian opportunities available in the market right now (i.e big dividends with attractive price appreciation potential). Without further ado, here is the full list.
This 13.6% Monthly Dividend Is Worth Considering
This global oil and gas producer, trades at an attractively discounted price, and pays big healthy monthly dividends. It offers a unique combination of production growth as well as below average financial leverage. The company has a history of self-funding capital programs as well as net dividends despite oil and gas price volatility as a result of attractive economics of its assets coupled with proactive hedging activities to reduce volatility.
Blue Harbinger Weekly: Dogs of the Dow
The Dogs of the Dow strategy is a contrarian, dividend-focused approach to blue chip investing, whereby an investor purchases annually the 10 Dow Jones stocks with the highest dividend yield. The idea is that management teams set the dividend at an appropriate level, and a higher yield is a signal that the shares are undervalued. This week’s Blue Harbinger Weekly reviews the recent performance of the individual Dogs of the Dow, as well as two specific Dogs that are particularly attractive right now. We also share the weekly performance update table for all of our current holdings (and contenders) along with a few comments on performance and opportunities.
New Options Trade: Johnson & Johnson Asbestos Fear, High Income Opportunity
Jonson & Johnson is a healthy blue chip dividend aristocrat. The shares have already inappropriately been beat up this year. And they just sold off another 6.2% on Friday thanks to overblown fear related to an irrelevant trace of asbestos found in a lot of its baby powder. These fear-driven factors have combined to create an attractive income-generating options trade opportunity, as described in this report.