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.