Shares of this streaming TV platform have fallen 50% since July, and the stock now trades at a compelling price relative to its long-term value. However, for those of you that like high upfront income (and are real sticklers on price), the trade described in this report is worth considering. The trade strategy sounds complex (i.e. “bullish vertical put spread”), but it’s not. It puts attractive upfront premium in your pocket today, it gives you a chance to pick up shares of this attractive stock at a lower price, and it gives you a little insurance on the downside (i.e. your max loss is limited). We believe this is an attractive trade to place over the next few trading sessions, as long as the share price doesn’t move too dramatically first.
Bond CEF: 7.2% Yield, Paid Monthly, Discounted Price
With inflation on the rise, and interest rates poised to move higher, does it still make sense to own bonds? Depending on your situation, the answer is a resounding, yes! And this article reviews a compelling closed-end fund (“CEF”) that owns attractive bonds, trades at a discounted price, and offers a juicy 7.2% yield—paid monthly. We currently own shares.
Top 10 Big-Dividend REITs: Inflation is Real
In case you haven’t noticed, rising inflation has been dominating economic headlines lately. The big argument is whether the recent rise in inflation is transitory (and thereby simply a short-term phenomenon following the pandemic lockdowns), or whether it is long-term (thereby making it a much bigger risk to investors). Make no mistake, inflation is real (its the hidden thief in the night that reduces the buying power of your nest egg), and if you park your money in a savings account, its going to be worth less and less every year (especially thanks to our low interest rate environment and rising inflation). In this report, we count down our ranking of top 10 big-dividend REITs (4.0% to over 10.0% yields).
Omega Is In Trouble: 4 Pros, 4 Cons, 1 Conclusion
Skilled Nursing Facility (“SNF”) REIT, Omega Healthcare Investors (OHI) announced earnings on Thursday, and the business is in trouble. Despite Omega’s long history of paying big dividends (it currently yields 9.0%), it is currently facing more significant challenges now than at any other time in its operating history. In this report, we review the business, consider four pros and four cons, and then conclude with our opinion about investing.
New Options Trade: High Upfront Income, Bullish Vertical Put Spread
This large social media company is set to announce earnings today after the close, however the share price is already down significantly in the last month due to fears related to the expected impacts of Apple’s new privacy changes. In our view, the impacts will be real, but this social media company will remain a long-term powerhouse, and the current situation has created an attractive high-income options trade. The trade strategy sounds complex (i.e. “bullish vertical put spread”), but it’s not. It puts attractive upfront premium in your pocket today, it gives you a chance to pick up shares of this attractive stock at a lower price, and it gives you a little insurance on the downside (i.e. your max loss is limited). We believe this is an attractive trade to place today—ahead of earnings.
TRUTH Social: To $1 Trillion in 10 Years?
Twenty-two year old Mark Zuckerberg was widely proclaimed foolish for not selling Facebook for $1 billion in 2006. It’s now worth around $1 trillion. There are but two major challenges for Trump Media & Technology Group (“TMTG”) (DWAC), led initially by TRUTH Social, in growing its market value to $1 trillion within the next decade, and one of them is already all but solved. In this article, we review the TMTG business model, the market opportunity, the two big challenges that must be overcome, and why 10 years from now your pocketbook may deeply regret if you don’t start accumulating shares this year.
Realty Income: A 4.0% Yield, Monthly Pay, Dividend Juggernaut
Realty Income (O) is nicknamed “The Monthly Dividend Company” for good reason. This REIT yields 4.0% and pays dividends monthly. In fact, it has increased its dividend in 95 consecutive quarters and it has made 614 consecutive monthly dividend payments to investors. In this report, we review the business, the upcoming merger/spin-off, dividend safety, valuation, and risks, and then conclude with our opinion on investing.
A Rare 8% Yield BDC Offering Dividend Growth, Equity Upside: Oaktree Specialty Lending
While other business development companies (“BDCs”) were cutting their dividends as a result of the pandemic, Oaktree Specialty Lending Corp (OCSL) not only maintained theirs, but has also significantly increased it in each of the past five quarters. Moreover, the shares are trading at an attractive price relative to net asset value (“NAV”). In this report, we review the health of the business, the highly-experienced management team, its balance sheet, liquidity, dividend safety, valuation and risks. We conclude with our opinion on investing.
Experiential REIT: Strong 5% Yield, Attractive Valuation
If you are an income-focused value investor, the REIT we review in this report is worth considering. It’s a triple net lease REIT, with a well-covered 5.0% dividend yield and the potential for ongoing share price appreciation. It’s been largely unfazed by pandemic challenges, and has actually been wisely increasing the growth trajectory of its business in a space with high barriers to entry. In this report we review the business, dividend safety, valuation and risks, and then conclude with our opinion on investing.
Top 8 Big-Dividend REITs, BDCs, CEFs, MLPs
Healthcare Stock: Tremendous Upside Potential
This article reviews a biotechnology (healthcare) company that develops non-invasive genomics tests used to diagnose skin cancer. The product is considered superior to current test procedures, and revenues are growing rapidly. Further, the company has three additional products (still in development phase) with even larger total addressable market opportunities. Encouragingly, the company is working diligently to expand product usage by educating the medical community and by reaching out to more insurers to cover it. In this report, we analyze the business model, product advantages, market opportunity, competitive positioning, valuation, risks, and then conclude with our opinion on investing.
New Options Trade: High Upfront Income, High Growth
In the short-term, the market is a voting machine, and in recent trading sessions high-growth stocks have been voted down indiscriminately. However in the long-term, the market is a weighing machine, and top business eventually rise to the top. In this report, we share an options trade that generates a lot of upfront premium income, and the trade is on a highly attractive long-term growth stock. This trade not only puts attractive upfront cash in your pocket (that you get to keep no matter what), but it also gives you a shot at picking up shares of this highly attractive business at an even lower price (if the shares get put to you before the contract expires in a matter of weeks). We believe this is an attractive trade to place today (and potentially over the next few trading sessions) as long as the price of the underlying shares doesn’t move too much before then.
PIMCO CEF: The Big Premium, I'll Be Back, 10.1% Yield
Often an income-investor favorite, 2021 continues to be an interesting year for PIMCO’s lineup of big-distribution, monthly-pay, fixed-income CEFs. We’ve seen the launch of a new winner, a distribution cut from a perennial favorite, and now an imminent merger and sharply declining premiums for three classic PIMCO funds. In this report, we focus on one in particular, its 10.1% monthly distribution and its significantly shrinking price premium (versus NAV) as the big merger looms imminent. And regarding its once large premium, it is our opinion, as Arnold Schwarzenegger’s Terminator character once said, I’ll be back! We conclude with some important takeaways on who might want to invest and how.
Healthcare REIT: 5.5% Yield, Healthy Growth
The 5.5% dividend yield healthcare REIT we review in this report is attractive. Its dividend is well covered (82% payout ratio) and is likely to grow (considering this year’s double-digit FFO per share growth expectation). We also like the company’s track record of delivering normalized FFO per share growth of nearly 9% over the last 10 years. In this report, we review the health of the business, valuation, risks, dividend safety, and then conclude with our opinion on investing.
Top 10 Fintech Stocks: Secular Behemoths in the Making
Financial technology (or “fintech”) increasingly underpins the global economy. Ranging from mobile banking, investing, borrowing and cryptocurrency, fintech has massive opportunity for growth as it increasingly threatens big banks and the financial services industry status quo. From an investment standpoint, the best opportunities for dramatic long-term compound growth usually come from disruptive innovation (such as the industrial revolution, the advent of the internet and now fintech). In this report we countdown our top 10 fintech stocks.
Digital Payments: Robust Cash Flow, High Growth
The “fintech” company we review in this report will continue to benefit from long-term secular growth in digital payments. It delivers powerful cash flow, strong (and improving) margins and a massive total addressable market (TAM) opportunity. And it has an impressive two-sided network. In this report, we review the business, growth prospects, valuation and risks, and then conclude with our opinion on investing.
The Digitization of Real Estate Brings Massive Opportunity: Consider This Stock
Big Q4 Dividend: On Sale for Labor Day
This attractive CEF has been paying big dividends for over 80 years! And its big annual Q4 dividend is currently on sale, as the shares trade at a very attractive discount to net asset value. Additionally, the fund is well managed, it charges very low fees for a CEF, it doesn’t use any risky leverage, and it provides very important diversification by giving income-focused investors exposure to market sectors they don’t usually participate in. If you are a long-term, income-focused investor that likes to buy things on sale, this CEF is absolutely worth considering.
50+ Big-Dividend "MOPAY" Stocks: These 3 Are Worth Considering
“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” - John D. Rockefeller
That quote takes on special meaning for income-focused investors today as many of the world’s most popular stocks don’t even pay dividends (and many don’t even have positive net income). On the flip side, big steady dividend income is hard to find, but very special—especially when those big dividends are paid monthly (MOPAY). In this report, we share data on 50+ big-dividend MOPAY stocks, and then highlight three in particular that are uniquely attractive and worth considering.
New Purchase: Fintech Lending, Large Disruptive Growth
We initiated a new position in this rapidly growing fintech company. In this report, we explain why, including its high growth rate and large market opportunity. If you are a low-volatility, income-focused investor—this report is NOT for you. However, if you are looking to add some powerful long-term growth—fintech continues to present attractive opportunities (in this case, to disrupt traditional finance and banking), and this stock is well positioned to benefit.