Quick Note: For your consideration, sharing data on 100 big-yield CEFs, including: premium-discount versus NAV, leverage, yield, strategy, performance and more.
PDI: The Case for Bond CEFs, PIMCO Leads
If you have been invested heavily in the stock market for the last few years, congrats—you’ve made a lot of money. But if your stage in life suggests now is the time to “de-risk,” your options might seem limited. In particular, bonds (the traditonal de-risking methodology) currently offer low yields (for example Vanguard’s popular bond ETF (BND) only yields 3.4%) and rates may be about to go even lower (i.e. the fed seems ready to cut). One bond alternative that offers several unique advantages is PIMCO’s 13.9% yield Dynamic Income Fund (PDI). In this report, we review the advantages of bond closed-end funds with a detailed focus on PDI. We conclude with our strong opinion on current bond CEF opportunities and PDI in particular.
Members Mailbag: PAXS and ROC
Members Mailbag (Quick Note): If you are familiar with PIMCO Bond Funds, you know (1) they are popular for providing big monthly income payements to investors, but (2) Few people actually want to know “How the sausage is made.” Here is a quick question from a member about “Return of Capital” (“ROC”) on PIMCO’s 11.5% yield PAXS, followed by a reply from me. Hopefully, it’s a helpful piece of info for you to “stir into the pot” as you manage your investments.
50+ Top Semiconductor Stocks, Compared
Quick Note: Sharing updated data on 50+ top semiconductor stocks (such as Nvidia, Broadcom and AMD). The data is sorted by market cap, and you can see performance has been quite weak over the last month (despite strong analyst ratings, which are also included). Hopefully this data is helpful as you research ideas.
Nvidia: Too Much, Too High
If you are like just about every single person I talk to, you own shares of Nvidia. And you probably love to tell your story of how you got in early, or how you should have bought more. But what about Nvidia's valuation? And what about your "position sizing" of Nvidia within your aggregate investment portfolio? After reviewing Nvidia's business, growth trajectory and risks, we discuss its current valuation and prudent position sizing within your personal investment portfolio. We conclude with our strong opinion about owning Nvidia shares ahead of the upcoming earnings announcement.
Top Growth Stocks (Updated): Top 10 Tear Sheet + Disciplined Growth Portfolio
Our Top 10 Growth Stocks Tear Sheet has been updated. And so has our complete Disciplined Growth Portfolio. There have been two main new purchases, and one prominent complete sale (as well as a handful of rebalancing trades, plus the liquidation of several smaller positions). You can also access “buy under” prices relative to current market prices, plus additional aggregate and security-specific data.
VOO: Easy Alpha, Big Income, Chi
This report is about generating easy alpha and big steady income from a balanced core portfolio of ETFs (such as Vanguard’s S&P 500 ETF (VOO)) and augmented with optional satellite single-stock investments as per your personal preferences (we give multiple top idea examples). This strategy will beat the pants off your peers and create an easier life for you (“chi”). After reviewing the details and advantages of VOO (and a balanced core-satellite portfolio), we conclude with our strong opinion on how best to implement this highly-customizable strategy to achieve your personal investment goals.
BDCs (Big Yields): Prices Weak as Credit Spreads Widen, Rate Cuts Loom
Sharing Updated Data: Big-yield BDCs have been particularly weak over the past few weeks (following earnings), especially in light of widening credit spreads (i.e. lending risk) and a looming rate cut by the fed (which will negatively impact some floating rate recipients more than others). Sharing updated comparison data on 35+ big-yield BDCs, plus a brief opinion on whether now is the time to buy or head for the hills.
High Income NOW: Updated Top 10 Tear Sheet, 23-Position Portfolio (9.7% Yield)
Our Top 10 “High Income NOW” Tear Sheet has been updated. And so has our complete 23-position “High Income NOW” Portfolio (aggregate yield is 9.7%). There have been several new positions added, two complete sales and some rebalancing of existing positions. You can also access “buy under” prices relative to current market prices, plus additional aggregate and security-specific data.
Quick Note: 1-Month Returns (Ugly) on Popular Stocks
Earnings Note: Oaktree Specialty Lending
Quick Note: Oaktree Specialty Lending Corp (OCSL) is a big-yield (+13.8%) BDC that has been declining in price, particularly following its latest earnings announcement this past week whereby its adjusted net investment income (“NII”) came in at $0.55 per share (a penny lower than estimates) and just matches its quarterly dividend of the same amount.
SCHD Part 2: Easy Alpha
In part one of this report, we explained why the Schwab US Dividend Equity ETF (SCHD) is for winners (including its growing dividend, low volatility and more). In this part two, we explain how SCHD can easily add big alpha to investor returns (in four very specific ways). In the conclusion of this report, we explain why many “SCHD haters” are usually barking up the wrong tree (they’re typically earning no alpha anyway) as well as our strong opinion on who should consider investing.
Earnings Note: Mercado Libre En Fuego
Earnings Note: Paylocity
Quick Note: Paylocity (PCTY) beat earnings and revenue expectations, and the shares are up. However, Paylocity shares have been so beaten up for so long (they’re still down ~50% from the 2021 high, thanks in large part to its focus on small-and-mid-sized businesses as customers) that some people haven’t noticed the fundamentals have never stopped improving.