Better. Faster. Smarter. The Software-as-a-Service (SaaS) company that we review in this article helps organizations digitize and unify their workflows. That may sound like a lot of hot air, but it’s not. This is a real deal profitable business that is growing rapidly, has an extremely high customer retention rate and a massive long-term total addressable market opportunity (so it can keep growing rapidly). The company does not pay a dividend, but the shares have gotten relatively inexpensive during the recent “tech wreck,” and 5 years from now many people will wish they bought shares. We are long this stock, and it currently presents a compelling buying opportunity.
Another Standout BDC: 7.1%+ Dividend Yield
If you are looking for a high-income opportunity that is attractive on a risk-versus-reward basis, the BDC we review in this article is worth considering. Not only does it offer regular, supplemental and special dividends, but it stands out versus its BDC peers in terms of strong financial metrics and strong deal flow trajectory going forward. It also has support from a larger parent organization, it has significant interest rate hedging (by virtue of its largely floating rate portfolio and debts) and the recent share price pullback makes for an increasingly attractive entry point. In this report, we review the details and conclude with our opinion on investing.
Attractive 8% Plus Yield BDC: Interest Rate Risk Baked In
This big-dividend hidden gem of a BDC may be popular in certain niche investment circles, but if you haven’t considered it previously, it is attractive and worth a closer look. It has many of the important qualities you’d like to see in a BDC (such as internal management, strong NII and a healthy dividend), plus the growing macroeconomic interest rate risks are already baked in—to a significant extent. In this report, we dive into the important details (ahead of its upcoming earnings release on January 31st), and then conclude with our opinion on investing.
This 9.3% Dividend Yield BDC is Worth Considering
The BDC we review in this report offers a stable 9.3% dividend yield. It also has a strong liquidity position and a relatively defensive portfolio (attractive given current macro uncertainty). In this report, we review the business, valuation, dividend safety and risks. We conclude with our opinion on who might want to invest.
New Options Trade: High Upfront Income, Fear Creates Opportunity
High growth stocks have been selling off hard as the market is fearful of the fed’s indication of higher interest rates (as the "pandemic trade" continues to unwind). This has created an attractive opportunity to generate high upfront premium income in the options market. In this report, we share an income-generating options trade on an attractive long-term growth stock that has simply sold off too hard as a result of the market’s latest volatility and fear. In fact, premium income available goes up when short-term fear is high, and that is a big part of the reason why this trade is particularly attractive. 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 far before then.
Attractive 5.9% Yield CEF: Non-Traditional Income-Sector Exposure
If you like high income, but worry that your portfolio is too concentrated in traditional high-income sectors of the market, then this 5.9% yield (paid monthly) closed-end fund (“CEF”) is worth considering. This particular high-income CEF gives you important diversifying exposure to high-growth sectors (such as technology—a sector traditionally known for low yield), and it also trades at an attractive price. The price is attractive not only for the current discount to NAV, but because the underlying holdings are positioned for long-term gains—which will help the fund continue to pay you big steady income. It also employs a compelling covered-call strategy, it has a relatively low management fee (important!), and it has a rock-solid management company. In this report, we dive into the details.
Attractive Big-Dividend BDC: 7.9% Yield
In addition to the healthy 7.9% dividend yield, there are lots of things to like about this attractive business development company (“BDC”), including its low exposure to cyclical industries, its impressive portfolio quality, extensive industry relationships and its conservative balance sheet, to name just a few. In this report, we review the business model, portfolio characteristics, strategies and advantages, portfolio performance, dividend yield and safety, financial position, risks and finally conclude with our opinion on the stock’s risk-reward opportunity at the current valuation.
2022 Income Investment Opportunities: REITS, BDCs, CEFs and MLPs
A Compelling Big Bank: 3.4% Dividend Yield
Big Banks have changed a lot since the great financial crisis, but in a lot of ways they have remained the same. They’re now subject to dramatically more stringent regulatory rules (e.g., “too big to fail”), but their profitability (and long-term value) is still derived largely based on the same basic metrics (e.g., book value and net interest margins plus fees). And despite media stories obsessed with which tech companies have the biggest market caps, big banks continue to generate among the biggest piles of net income. In this report, we review one big bank in particular, describing why the shares are undervalued, the 3.4% dividend yield is attractive, the current market opportunity, a review of the risks, and concluding with our opinion on who might want to consider investing.
Industrial REIT: Attractive Dividend and Share Price Growth
Some investors might overlook the attractive industrial REIT we review in this report because its current dividend yield is only 1.6%. However, this dividend has been growing faster than peers (and we expect this to continue), and the yield is lower than peers because the share price has also been growing significantly faster than peers (and we expect this to continue too). In this report, we review the REIT’s attractive business model (including ongoing market opportunities), its financials, valuation and risks; we conclude with our strong opinion on investing.
The Sky is NOT Falling: Attractive Cloud-Based SaaS HR Company
The market has been especially ugly for high-growth stocks recently as the pandemic-trade pendulum now swings too far in the opposite direction. But that doesn’t mean all growth stocks are ugly. Quite the contrary. The attractive growth stock we review in this report offers a compelling high growth rate, a large total addressable market opportunity and an attractive valuation. Plus, it is supported by high recurring revenues, high customer retention and important research-and-development spending plus a strong sales team.
A Return to Office Play: 3.1% Yield REIT
The office REIT we review in this report is attractive for a variety of reasons, including its healthy dividend (it’s well covered and has been paid for 25 consecutive years), favorable geographic economics, ongoing growth trajectory, and the trend for companies to bring employees back to the office. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with some final thoughts worth considering if you are a long-term income-focused investor.
**New Trades: 2 Sells, Quick Update**
A Dividend Growth Monster, On Sale
When investors think of “big dividends” their minds often gravitate to stocks with the highest dividend yields. However, “yield on cost” can be an extremely important metric for long-term income-focused investors because it can reveal massive dividend opportunities flying under the radar. For example, the attractive undervalued dividend stock we review in this article doesn’t have the biggest current yield, but if you look backwards and forwards, the yield on cost is truly massive and it has the trajectory to continue growing dramatically larger.
Interest Rate Protection: Attractive 6.9% Yield, Floating-Rate CEF
If you are an income-focused investor, you’re likely concerned about rising inflation because it can eat away at the value of your next egg and the buying power of your income. This article reviews an attractive closed-end fund (“CEF”) that provides a big monthly income payment, plus some protection against rising interest rates and inflation through its floating rate income (i.e. as rates go up, the payments this fund provides also go up). We provide a quick overview of the fund, review its nuts and bolts through 6 important charts, and then conclude with our opinion on investing.
How Big Will the Sell Off Be?
A Powerful Clean-Energy Megatrend Play
The company we review in this report is known for manufacturing power generators (and related products) but has recently opened up significant growth opportunities in the “clean energy” and “smart grid 2.0” spaces. It has also recently been benefiting from increased demand for standby home generators (due to frequent power outages in the US as a result of harsh weather conditions). As an investment, the company’s comprehensive set of offerings is uniquely positioned to benefit from the large market opportunity ahead. In this report, we review the business model, the market opportunity, financials, valuation, risks, and then conclude with our opinion on investing.
New Options Trade: High Upfront Income, International Electronic Commerce
Shares of this Brazilian electronic commerce juggernaut looked attractively inexpensive a few months ago, but have since fallen significantly further. Its woes stem from a weakening currency, interchange fee pressures, covid and now a recent FBI raid of its major POS terminal providers (in relation to cyberattacks). However, the business continue to strengthen and the market opportunity remains huge (lots of room for continuing growth). Contrarians may consider purchasing shares outright, however in this report we share an attractive income-generating options trade. The 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 less than 1 month. 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.
Bond CEF: 7.2% Yield, Paid Monthly, Discounted Price
With inflation on the rise, and interest rates poised to move higher, does it still make sense to own bonds? Depending on your situation, the answer is a resounding, yes! And this article reviews a compelling closed-end fund (“CEF”) that owns attractive bonds, trades at a discounted price, and offers a juicy 7.2% yield—paid monthly. We currently own shares.
Top 10 Big-Dividend REITs: Inflation is Real
In case you haven’t noticed, rising inflation has been dominating economic headlines lately. The big argument is whether the recent rise in inflation is transitory (and thereby simply a short-term phenomenon following the pandemic lockdowns), or whether it is long-term (thereby making it a much bigger risk to investors). Make no mistake, inflation is real (its the hidden thief in the night that reduces the buying power of your nest egg), and if you park your money in a savings account, its going to be worth less and less every year (especially thanks to our low interest rate environment and rising inflation). In this report, we count down our ranking of top 10 big-dividend REITs (4.0% to over 10.0% yields).