Skilled Nursing Facility (“SNF”) REIT, Omega Healthcare Investors (OHI) announced earnings on Thursday, and the business is in trouble. Despite Omega’s long history of paying big dividends (it currently yields 9.0%), it is currently facing more significant challenges now than at any other time in its operating history. In this report, we review the business, consider four pros and four cons, and then conclude with our opinion about investing.
TRUTH Social: To $1 Trillion in 10 Years?
Twenty-two year old Mark Zuckerberg was widely proclaimed foolish for not selling Facebook for $1 billion in 2006. It’s now worth around $1 trillion. There are but two major challenges for Trump Media & Technology Group (“TMTG”) (DWAC), led initially by TRUTH Social, in growing its market value to $1 trillion within the next decade, and one of them is already all but solved. In this article, we review the TMTG business model, the market opportunity, the two big challenges that must be overcome, and why 10 years from now your pocketbook may deeply regret if you don’t start accumulating shares this year.
Realty Income: A 4.0% Yield, Monthly Pay, Dividend Juggernaut
Realty Income (O) is nicknamed “The Monthly Dividend Company” for good reason. This REIT yields 4.0% and pays dividends monthly. In fact, it has increased its dividend in 95 consecutive quarters and it has made 614 consecutive monthly dividend payments to investors. In this report, we review the business, the upcoming merger/spin-off, dividend safety, valuation, and risks, and then conclude with our opinion on investing.
A Rare 8% Yield BDC Offering Dividend Growth, Equity Upside: Oaktree Specialty Lending
While other business development companies (“BDCs”) were cutting their dividends as a result of the pandemic, Oaktree Specialty Lending Corp (OCSL) not only maintained theirs, but has also significantly increased it in each of the past five quarters. Moreover, the shares are trading at an attractive price relative to net asset value (“NAV”). In this report, we review the health of the business, the highly-experienced management team, its balance sheet, liquidity, dividend safety, valuation and risks. We conclude with our opinion on investing.
Experiential REIT: Strong 5% Yield, Attractive Valuation
If you are an income-focused value investor, the REIT we review in this report is worth considering. It’s a triple net lease REIT, with a well-covered 5.0% dividend yield and the potential for ongoing share price appreciation. It’s been largely unfazed by pandemic challenges, and has actually been wisely increasing the growth trajectory of its business in a space with high barriers to entry. In this report we review the business, dividend safety, valuation and risks, and then conclude with our opinion on investing.
Top 8 Big-Dividend REITs, BDCs, CEFs, MLPs
Healthcare Stock: Tremendous Upside Potential
This article reviews a biotechnology (healthcare) company that develops non-invasive genomics tests used to diagnose skin cancer. The product is considered superior to current test procedures, and revenues are growing rapidly. Further, the company has three additional products (still in development phase) with even larger total addressable market opportunities. Encouragingly, the company is working diligently to expand product usage by educating the medical community and by reaching out to more insurers to cover it. In this report, we analyze the business model, product advantages, market opportunity, competitive positioning, valuation, risks, and then conclude with our opinion on investing.
New Options Trade: High Upfront Income, High Growth
In the short-term, the market is a voting machine, and in recent trading sessions high-growth stocks have been voted down indiscriminately. However in the long-term, the market is a weighing machine, and top business eventually rise to the top. In this report, we share an options trade that generates a lot of upfront premium income, and the trade is on a highly attractive long-term growth stock. This trade not only puts attractive upfront cash in your pocket (that you get to keep no matter what), but it also gives you a shot at picking up shares of this highly attractive business at an even lower price (if the shares get put to you before the contract expires in a matter of weeks). We believe this is an attractive trade to place today (and potentially over the next few trading sessions) as long as the price of the underlying shares doesn’t move too much before then.
PIMCO CEF: The Big Premium, I'll Be Back, 10.1% Yield
Often an income-investor favorite, 2021 continues to be an interesting year for PIMCO’s lineup of big-distribution, monthly-pay, fixed-income CEFs. We’ve seen the launch of a new winner, a distribution cut from a perennial favorite, and now an imminent merger and sharply declining premiums for three classic PIMCO funds. In this report, we focus on one in particular, its 10.1% monthly distribution and its significantly shrinking price premium (versus NAV) as the big merger looms imminent. And regarding its once large premium, it is our opinion, as Arnold Schwarzenegger’s Terminator character once said, I’ll be back! We conclude with some important takeaways on who might want to invest and how.
Healthcare REIT: 5.5% Yield, Healthy Growth
The 5.5% dividend yield healthcare REIT we review in this report is attractive. Its dividend is well covered (82% payout ratio) and is likely to grow (considering this year’s double-digit FFO per share growth expectation). We also like the company’s track record of delivering normalized FFO per share growth of nearly 9% over the last 10 years. In this report, we review the health of the business, valuation, risks, dividend safety, and then conclude with our opinion on investing.
Top 10 Fintech Stocks: Secular Behemoths in the Making
Financial technology (or “fintech”) increasingly underpins the global economy. Ranging from mobile banking, investing, borrowing and cryptocurrency, fintech has massive opportunity for growth as it increasingly threatens big banks and the financial services industry status quo. From an investment standpoint, the best opportunities for dramatic long-term compound growth usually come from disruptive innovation (such as the industrial revolution, the advent of the internet and now fintech). In this report we countdown our top 10 fintech stocks.
Digital Payments: Robust Cash Flow, High Growth
The “fintech” company we review in this report will continue to benefit from long-term secular growth in digital payments. It delivers powerful cash flow, strong (and improving) margins and a massive total addressable market (TAM) opportunity. And it has an impressive two-sided network. In this report, we review the business, growth prospects, valuation and risks, and then conclude with our opinion on investing.
The Digitization of Real Estate Brings Massive Opportunity: Consider This Stock
Big Q4 Dividend: On Sale for Labor Day
This attractive CEF has been paying big dividends for over 80 years! And its big annual Q4 dividend is currently on sale, as the shares trade at a very attractive discount to net asset value. Additionally, the fund is well managed, it charges very low fees for a CEF, it doesn’t use any risky leverage, and it provides very important diversification by giving income-focused investors exposure to market sectors they don’t usually participate in. If you are a long-term, income-focused investor that likes to buy things on sale, this CEF is absolutely worth considering.
50+ Big-Dividend "MOPAY" Stocks: These 3 Are Worth Considering
“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” - John D. Rockefeller
That quote takes on special meaning for income-focused investors today as many of the world’s most popular stocks don’t even pay dividends (and many don’t even have positive net income). On the flip side, big steady dividend income is hard to find, but very special—especially when those big dividends are paid monthly (MOPAY). In this report, we share data on 50+ big-dividend MOPAY stocks, and then highlight three in particular that are uniquely attractive and worth considering.
New Purchase: Fintech Lending, Large Disruptive Growth
We initiated a new position in this rapidly growing fintech company. In this report, we explain why, including its high growth rate and large market opportunity. If you are a low-volatility, income-focused investor—this report is NOT for you. However, if you are looking to add some powerful long-term growth—fintech continues to present attractive opportunities (in this case, to disrupt traditional finance and banking), and this stock is well positioned to benefit.
Frothy Market Valuation: Raising Cash, 3 High Income Protection Stocks
If you care most about receiving big steady dividends and income from your investments, then you may care less about impending market volatility. However, if you are consistently selling shares to generate spending cash—then a massive market decline (even if it’s only temporary) can spell disaster. In this report, we review current market valuation metrics (suggesting big danger on the horizon), we then explain why your anxiety level may be a symptom of something else (that needs to be addressed), we delve into the important question “how much cash should you hold?” and then highlight three specific “high income protection stocks,” before finally concluding with a very important takeaway.
New Options Trade: High Upfront Income, Diversified Midstream
In this report, we share a high-income-generating options trade on a diversified pipeline company that continues to make progress on paying down debt, it continues to pay an attractive distribution, and the share price is increasingly attractive. We believe the trade is attractive to place today, and potentially over the next few trading sessions as long as the underlying share price doesn’t move too far before then.
25 Big-Dividend Healthcare Stocks: These 3 Are Worth Considering
It makes a lot of sense for income-focused investors to look beyond simply the current dividend yield and to also consider profitability and growth. In this report, we share data on 25 big-dividend healthcare stocks, including also data on earnings and revenue growth. We then highlight a few names from the list that we believe are particularly attractive and worth considering for investment—if you are a long-term income-focused investor.
75 Big-Dividend REITs, BDCs, CEFs: These 3 Are Worth Considering
If you like to generate big steady income, REITs, BDCs and CEFs can be attractive for their high yields (often in excess of 5-6%). And while these are dramatically different types of investments, they can be prudent building blocks within a well-diversified, income-focused, investment portfolio—when selected carefully. In this report, we share data on over 75 big-dividend investments (25+ REITs, 25+ BDCs and 25+ CEFs), review some of the attractive qualities and risks of each, and then dive into three specific names from the list that are particularly attractive and worth considering for investment.