If you care most about receiving big steady dividends and income from your investments, then you may care less about impending market volatility. However, if you are consistently selling shares to generate spending cash—then a massive market decline (even if it’s only temporary) can spell disaster. In this report, we review current market valuation metrics (suggesting big danger on the horizon), we then explain why your anxiety level may be a symptom of something else (that needs to be addressed), we delve into the important question “how much cash should you hold?” and then highlight three specific “high income protection stocks,” before finally concluding with a very important takeaway.
New Options Trade: High Upfront Income, Diversified Midstream
In this report, we share a high-income-generating options trade on a diversified pipeline company that continues to make progress on paying down debt, it continues to pay an attractive distribution, and the share price is increasingly attractive. We believe the trade is attractive to place today, and potentially over the next few trading sessions as long as the underlying share price doesn’t move too far before then.
25 Big-Dividend Healthcare Stocks: These 3 Are Worth Considering
It makes a lot of sense for income-focused investors to look beyond simply the current dividend yield and to also consider profitability and growth. In this report, we share data on 25 big-dividend healthcare stocks, including also data on earnings and revenue growth. We then highlight a few names from the list that we believe are particularly attractive and worth considering for investment—if you are a long-term income-focused investor.
75 Big-Dividend REITs, BDCs, CEFs: These 3 Are Worth Considering
If you like to generate big steady income, REITs, BDCs and CEFs can be attractive for their high yields (often in excess of 5-6%). And while these are dramatically different types of investments, they can be prudent building blocks within a well-diversified, income-focused, investment portfolio—when selected carefully. In this report, we share data on over 75 big-dividend investments (25+ REITs, 25+ BDCs and 25+ CEFs), review some of the attractive qualities and risks of each, and then dive into three specific names from the list that are particularly attractive and worth considering for investment.
New Purchase: Powerful Fintech Play, Lots to Like
We just initiated a new position in our Disciplined Growth Portfolio. The company is a powerful fintech player that offers an attractive combination of growth, value and profits. More specifically, the company is gaining share in a large (and rapidly expanding) market space, it has a high revenue growth trajectory, a broadening ecosystem, and unlike many high growth players—this one is actually growing profitably (a good thing in this case!). Of course there are risks (including covid challenges, non-US growth and competition), but overall the opportunity is highly attractive, and we just added shares.
Big-Dividend BDCs: The 5 We Own (Yielding 6.0%, 9.1%, 8.2%, 8.1% and 8.5%)
Business Development Companies, or “BDCs,” basically provide financing (debt and equity) to private companies that are usually a bit too risky for ordinary banks to work with (due especially to stringent post-financial crisis regulatory rules). However, by building a portfolio of these companies, BDCs can reduce risks, and pay income-focused investors the big dividend yields that they love. This report provides an overview of current BDC valuations, and then reviews five of our favorite BDCs, currently yielding 6.0%, 9.1%, 8.2%, 8.1% and 8.5%, respectively.
Data Center REIT: Growing Dividend to Benefit from Ongoing Digital Transformation
If you are looking for a steady growing dividend (and the potential for continuing long-term share price appreciation) the data center REIT we review in this report is attractive. For starters, it has raised its dividend (current yield is 2.9%) for 16 straight years (since its IPO) thanks to steady growth in its funds from operations (~11% CAGR since 2005). And even though core FFO per share declined in 2020 (pandemic year) it is on pace to bounce back in 2021. Further, it will continue to benefit from the massive ongoing secular digital transformation. In this report, we review the business, valuation, dividend safety, risks and then conclude with our opinion on investing.
New Options Trade: High Upfront Income, Effective Social Media
As many technology companies are facing tough quarterly comps (as the initial pandemic social-distancing bump wears off), the market is misinterpreting (in some cases) the latest batch of earnings results with a short-term lens. And this has created some attractive opportunities in the options market. In this report, we review a high-income-generating options trade on a powerful social media stock that just recently sold-off. The trade not only puts significant upfront premium income in your pocket (that you get to keep no matter what), but it also gives you a shot at picking up shares of this extremely attractive company at an even lower price. We believe this is an attractive trade to place today and potentially into early next week, as long as the underlying share price doesn’t move too dramatically before then.
Top 10 Dividend Growth Stocks: Give Yourself a Raise
For income-focused investors, “yield chasing” is one of the most common and most painful mistakes. Instead, focusing on stocks with healthy growing dividends can be a much better approach. In this report, we rank our top 10 dividend growth stocks (those with at least 10 consecutive calendar years of dividend increases), including a healthy mix of higher (above 5%) and lower (below 5%) dividend yield opportunities. We start the countdown with #10 and finish with our #1 top idea.
Attractive 5.3% Yield REIT: Compelling Valuation
The net lease REIT we review in this report has come through the pandemic largely unscathed thanks to the mission-critical nature of it properties for its tenants. It also has an impressive dividend history, with consecutive annual increases since going public in 1998. Looking ahead, this REIT has multiple growth catalysts that should help it continue its impressive track record. In this report, we review the health of the business, valuation, risks, dividend safety, and then conclude with our opinion on investing—particularly if you are a long-term income-focused investor that also likes growth.
Stable Cash Flow Giant: Attractive 8.5% Yield
Headquartered in Canada, this midstream company operates the world’s largest oil and natural gas pipeline network (transporting about 25% of overall crude oil produced in North America). Approximately 98% of the revenue is derived from long term cost-of-service or take-or-pay contracts with automatic escalators leading to predictable cash flows across business cycles which in turn allows for consistent dividends. The company has been actively investing in upgrading and expanding its pipeline networks while also taking small steps towards greener alternatives to reduce its carbon footprint. In this report, we analyze the business model, market opportunity, financials, valuations, risks, and finally, conclude whether an investment in the company’s stock offers an attractive balance between risks and rewards.
Exxon Mobil: Despite Woke Mob, 5.9% Yield Tempting
Luckily for the planet, the widespread use of fossil fuel is likely to end. Just not anytime soon. And as a true fiduciary should, Exxon Mobil remains committed to growing long-term shareholder value—despite relentless pressures from the climate-change woke mob. In this report, we review Exxon Mobil’s business strategy, climate change pressures, dividend safety, valuation and risks. We conclude with our opinion on investing.
Portfolio Tracker Updates: Continuing Long-Term Success
New Options Trade: Very High Upfront Income, Bullish Vertical Put Spread
This report reviews an attractive high-income-generating options trade on a compelling long-term fintech business (Warren Buffett and Cathie Wood are both shareholders). The trade generates attractive upfront premium income, and gives you a shot at picking up shares of this attractive business at a lower price. We believe the trade is an attractive one to place today, and potentially over the next few trading sessions, as long as the price of the underlying shares doesn’t move too dramatically.
Celsius Fitness Drinks: High-Growth Disruptor, Important Things to Consider
Celsius Holdings offers fitness-focused energy drinks, and the business has been experiencing dramatic growth as the pandemic serendipitously led the company to shift its marketing strategy from gyms to mainstream. Investors are optimistic as the company has serious momentum but currently holds just over 1% market share (suggesting a lot of room for continuing growth). However, Celsius faces formidable competition (such as Red Bull, Monster and Rockstar). In this report, we consider the business model, market opportunity, financials, valuation and risks, and then conclude with our opinion on investing.
Dry Bulk Shipper: 6.4% Yield, Attractive Supply-Demand Dynamic
There is a lot to like about this large dry bulk shipper, not the least of which is its attractive 6.4% dividend yield. More specifically, the company is benefiting from a cyclical rebound in dry bulk shipping rates, on both the supply and demand sides. It’s expected to announce earnings on August 5th, and its 8.0% yield baby bonds are expected to be called at the end of this month. In this report, we review the business, market conditions, prospects, valuation and risks, and then conclude with our opinion on investing.
New Options Trade: Dividend Capture Covered Calls, Blue Chip Pharma
Today we share an income-generating options trade on a healthy-dividend blue-chip pharmaceuticals company. The trade not only generates compelling premium income and gives you a shot at selling the shares at a solid gain in less than 1-month, but it also gives you a chance to capture the dividend payment if the shares don’t get called away from you before the ex-dividend date in a little over 1-week from today. Also very important, we like this healthy-dividend company as a long-term investment, and we wouldn’t mind holding on to the shares if they don’t get called away. This is an attractive trade to place today and potentially over the next few trading sessions.
Powerful Blue Chip: Highly Attractive, Classically Misunderstood
The stock we review in this report is highly attractive, even though its financials are misunderstood by many. Specifically, the company is the strong leader in providing a business critical function that is being transformed from an outdated manual process into a 21st century digitized cloud-based solution. And the total addressable market opportunity (to keep growing rapidly) is massive and growing. Unfortunately, many investors misunderstand the high valuation multiples and low profitability as a weakness. To the contrary, it’s an absolute strength and the right thing to do as the company capitalizes on the highly attractive opportunity. This business will eventually become a massive cash cow.
Top 5 Growth Stocks: Despite Fear, Massive Upside
One of the biggest deterrents to successful long-term growth investing is near-term fear. Whether its driven by the relentless media fearmongering, short-term Wall Street valuation methodologies, or the psychological notion that people react more than twice as strong to down moves as up moves, near-term fear prevents investors from participating in massive long-term gains. It’s challenging for some people to recognize the amazing power of compound growth, but it is often referred to as the 8th wonder of the world by those who understand it. In this report, we countdown our top 10 growth stocks with massive upside potential (despite near-term fear), starting with #10 and finishing with our #1 top idea.
New Options Trade: High Upfront Income, Attractive Mortgage REIT
As interest rates (including mortgage rates) have slipped in recent weeks, so too has the share price of this attractive mortgage REIT fallen. It now trades at a significant discount to its last reported book value, and we believe this combination of events has set us up for a nice high-income-generating options trade. Specifically, we believe the trade described in this report is an attractive one to place today and potentially over the next few trading sessions, as long as the underlying share price doesn’t move too dramatically before then.