The preferred shares of many companies are now trading at attractively discounted prices as the COVID-19 pandemic has stoked fear among investors. And in many cases, this fear is unwarranted. One attractive way to play this opportunity is through closed-end funds (“CEFs”) that focus primarily on preferred stocks. This article highlights two compelling closed-end funds, offering big monthly income payments to investors (they yield 7.6% and 7.8%, respectively), and they’re currently trading at attractively discounted prices (thereby providing an opportunity for some price appreciation—in addition to big monthly income).
Triton Preferred Shares: Post-Pandemic Reality
Triton International (TRTN) is an intermodal shipping container company, and the big-yield common and preferred shares have been impacted dramatically by the worldwide COVID-19 pandemic. The company just released earnings, and gave us some important new insights. This report reviews the impacts of the economic slowdown on Triton’s business, its financial wherewithal (particularly cash), the competitive dynamics of the industry (and what might happen if Triton can weather the COVID-19 storm), valuation and risks. We conclude with our opinion about investing in the common (7% yield) and preferred (+9% yield) shares.
NuStar Preferreds Yield +15%: Real Risks, Big Rewards
NuStar Energy is a US based oil and natural gas midstream service provider. And despite the notion that its business is immune to energy price fluctuations (because of its long-term take or pay contracts) the recent crash in oil prices will inevitably have a significantly negative impact on NuStar because many of its customers are increasingly at risk of bankruptcy. In this report, we analyze the company’s business mix, income potential, its ability to meet financial obligations, and finally conclude with our opinion on whether the company’s common and preferred units offer an attractive balance between risks and rewards.
3 New Trades: New “Top Buys” Category Added to Portfolio Tracker Tool
We don’t trade often, however we’ve just placed three (3) new trades in our Blue Harbinger portfolios. We’ve also updated our Portfolio Tracker Tool to reflect a new “Buy Under” category called “Top Buys.” Both of these updates are based on current market conditions, and both are designed to help you manage your own investments. This report reviews the updates, including the trades and the current “Top Buys” within our existing portfolio holdings.
Realty Income: COVID-19 Big Loser or Big Winner? Here's Our Opinion
Realty Income, self-proclaimed “The Monthly Dividend Company,” is a revered dividend aristocrat with a 5.2% dividend yield and it has delivered for many investors for decades. But it’s still a retail REIT, and the impacts of COVID-19 social distancing are different than anything the company has experienced in the past. The shares have sold off hard, and some investors are left wondering if this a big warning or a big opportunity? This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion on investing.
Facebook: Money Printing Machine, On Sale
From time to time, we like to share attractive “Income via Growth” stocks. These are stocks that don’t necessarily pay big dividends, but they do provide the potential for diversified long-term high income from price gains (i.e. selling some of your winners to generate income). And the stock we review today is an absolute money printing machine, trading at a very compelling price thanks to the coronavirus sell off. Specifically, this company is a fast grower, with a wide moat, high margins, no debt and lots of cash. Simply put, it’s a money printing machine.
Helicopter Fed: Top 10 mREITs and Bond CEFs (Huge Yields, Discounted Prices)
This article shares our Top 10 compelling mREITs and Bond CEFs. They trade at significant discounts to their book values and are being supported, to varying degrees, by the actions of the US Fed. The Fed is pumping an unlimited amount of liquidity into the system by buying the types of bonds these compelling mREITs and CEFs own.
Paylocity: Attractive Business, Attractive Price, Powerful Upside
At Blue Harbinger, we make it a point to diversify our holdings across attractive opportunities among different styles and sectors. This diversification not only reduces risks, but it opens up more attractive opportunities. This article focuses on a cloud-based payroll processing company that can provide investors powerful long-term income through price appreciation. We’ve owned this stock since 2015, and believe the current market selloff makes the upside potential (i.e. income via growth) extraordinarily attractive in the quarters and years ahead.
Double-Digit Yields: Natural Gas and The Companies that Move It
The volume of natural gas demanded did not go down appreciably during the Great Recession nor the 2015 oil price crash, and it won't here either. Thus firms whose main business is moving natural gas from here to there for a fixed fee are not going to be that heavily affected. This guest article (from Darren McCammon) reviews two such companies that currently offer attractive, well covered, double digit dividend yields (we currently own one of the two). According to Mr. McCammon “these are exactly the type of firms one should be buying greedily as everyone else runs in fear.”