The tech-heavy Nasdaq just closed at a new all-time high. And while this is encouraging to some investors, and discouraging to others, the best bet for long-term investors is to simply own geat businesses (and ignore everything else—it’s just noise). In this report, we countdown our top 10 growth stocks, starting with a few honorable mentions. If you are into day trading, options and crypto—ignore this report—it’s not for you. If you like massive long-term compound growth, continue reading for our top ideas.
Updated: Top 10 Growth Stocks, Disciplined Growth Portfolio
Top 10 Big Yields: CEFs, BDCs, REITS (May 2024)
It’s a great time to be a big-yield investor (6% to 13% yields). For starters, the aggressive interest rate hike cycle (that pressured the prices of interest rate sensitive securities lower over the last two years) has now ended (as per fed chair Jerome Powell, it’s unlikely the next interest rate move will be higher). And with interest rates now settling in at their highest levels in over two decades, certain out-of-favor contrarian opportunities are particularly compelling. In this report, we countdown our top 10 big-yield opportunities, including closed-end funds (“CEFs”), business development companies (“BDCs”), real estate investment trusts (“REITs”), dividend stocks and more.
PTY: Despite 3 Big Tax Risks, 10.1% Yield Worth Considering
There seems to be no shortage of big-yield investment ideas on the internet. However, any discussion of the associated tax consequences seems sparse. And despite this spareness, taxes have a major impact on your bottom line and should absolutely be a major consideration before investing. In this report, we first review important details on PTY’s big 10.1% yield, and then dig deeper into three big tax risks (including your account type, your personal tax rates, and the tax inefficiency of PTY versus compelling big-yield alternatives). We conclude with our strong opinion on investing in PTY and some general (but very important) advice on building a big-yield investment portfolio to optimize your after-tax bottom-line income.
Amazon: Ranking "The Magnificent 7" (Midyear Update)
As you can see in the table below, “The Magnificent 7” mega-cap stocks have posted incredible 10-year returns. However, there have recently been some big changes in the market (e.g. interest rate expectations) and to these seven businesses in particular (e.g. maturation, dividends, AI and more). In this report, we provide an update to our January rankings of the Magnificent 7 stocks, with a special focus on Amazon (AMZN) (including its business, four big growth drivers, valuation and risks). We conclude with our strong opinion on investing in Amazon (and each of the Magnificent 7) for the remainder of this year (and beyond).
Ares Capital: Building A Monster-Yield Portfolio (BDCs, CEFs, REITs)
If you are an income-focused investor, building a monster big-yield portfolio (8% to +11% yields), across a variety of categories (such as BDCs, CEFs and REITs), can help you achieve your goals. In this report, we share updated data on the top 7 securities (by market cap) in each of the three categories, and then dive deep into BDC Ares Capital (ARCC) (including its business strategy, current market environment, valuation, dividend safety and risks). We conclude with our strong opinion about constructing a high-income portfolio and about investing in Ares Capital.
This +13% Yield CEF is Attractive (Despite Distribution Source Dynamics)
Many investors love this big-yield CEF because of its strong track record of paying big monthly distributions. Whereas some others are traumatized by the dramatic share price volatility (mostly related to interest rates) in recent years. In this report, we review the fund, the distribution and price volatility sources, the section 19 notices (the distributions have been exceeding investment income and gains) and risks (misleading outside data sources, tax considerations, and the risk of a distribution “right sizing”). We conclude with our strong opinion on who might want to invest.