This week’s Weekly reviews the three REITs we actually own in our Blue Harbinger Income Equity portfolio. One is a residential REIT with a unique business model and an important competitive advantage, one is a blue chip industrial REIT with access to many prime locations, and the third is a big-dividend healthcare REIT that offers a very compelling contrarian opportunity.
Ventas: Big Safe Dividend or Dangerous Value Trap?
Ventas (VTR) is a healthcare REIT that pays a big 5.1% dividend yield. But its share price has declined dramatically since last summer (and particularly since the election). And considering the huge demographic healthcare tailwinds at its back, it might seem like now is a great time to “buy low.” This article reviews VTR's future prospects, and provides our strong views on whether it’s an attractive income opportunity or a dangerous value trap.
“America First” is Great, but Global Diversification is Powerful
The 45th President of the USA likes to say “America First,” which is great in our view, but global diversification can be very powerful. Case in point, the US dollar has declined sharply versus the euro (EUR) so far this year (after a “yuge” November rally). This article highlights our holdings in US companies with significant non-US exposure as well as our non-US holdings. In addition to the diversification benefits, we believe there could be more rewards ahead for investors with overseas exposure.
Top 5 Big Dividends Worth Considering
This week's Blue Harbinger Weekly is a continuation of our free report, Top 10 Big Dividends Worth Considering, but this version contains all the details for the Top 5. We own all 5 of the top 5 as long-term positions in our Blue Harbinger Income Equity strategy (we purchased three of them just last week, and two we've owned since the first half of 2016), and their dividend yields are 7.6%, 9.9%, ~7.8%, 9.9% and 6.0%, respectively. Without further ado, here are the Top five...
New Trades: Income Equity Strategy
The purpose of this post is to provide an update on several new trades in the Blue Harbinger Income Equity strategy. Specifically, we have added several new attractive closed-end funds (CEFs) that offer very healthy yields. We also sold one of our biggest yielding individual stocks, and we provide a rationale for the sale.
7.6% Yield CEF, Superior Management, Big Discount to NAV
This particular closed-end fund (CEF) offers an attractive 7.6% yield, an amazing track record of top-notch management, and currently trades at an exceptionally attractive discount to its net asset value (NAV). We are also very comfortable with its holdings, particularly its sector exposures, and believe it’s poised to deliver very strong future returns.
Attractive CEF Pays 7%, Big Discount to NAV
This morning we highlight an attractive “style-specific” Closed-End Fund (CEF) that offers a big 7.7% yield and trades at a compelling discount to its Net Asset Value (NAV). Importantly, this particular “style exposure” is extremely powerful over the long-term (it tends to outperform, by a lot), and it’s missing from many investors portfolios.
On Tap for This Upcoming Week...
This 8% Yield Small Cap CEF Is Attractive
Small cap stocks provide significant long-term price appreciation potential, but a perennial problem for income-investors is they pay very little in terms of dividends. However, the small cap CEF we review in this article offers a very attractive 8.0% annual yield (paid quarterly). It also offers a great management team, an impressive long-term track record, and it currently trades at a compelling 16% discount to its NAV suggesting it has strong price appreciation potential ahead.
This 11% Yield CEF Has Big Upside Potential
If you like big yield and significant price appreciation potential, then this particular closed-end fund (CEF) is worth considering. It’s a sector-specific CEF that yields nearly 11% (paid monthly). And not only is the sector an attractive contrarian play for multiple reasons right now, the fund is trading at a double-digit discount to its NAV which suggests it may have even more upside rebound potential ahead.
High Income: CEF Quick Screen Ideas
If you like to generate steady high income, Closed End Funds (CEFs) may be on your radar. For example, equity CEFs often generate steady quarterly distributions in excess of 7%. If you are a young person saving for retirement, it’s generally a good idea to NOT invest in CEFs, but if you’re already retired (or semi-retired) then CEFs can be worth considering. This article highlights 30 equity CEFs (many trading at attractive discounts), and we also share our views on how CEFs can be valuable if used correctly.