Bonds have been a disaster for many investors over the last year. As interest rates have risen, bond prices have fallen, and “safe” bond funds have delivered very negative returns (such as (BND) (HYG) and (PDI), to name a few, see chart below). In this report, we review a bond ETF that pays monthly, offers a 6.1% yield and avoids all the interest rate risk (i.e. if you hold it until maturity in December, your annualized yield to maturity will be 6.1%). We review all the important details and then conclude with our strong opinion on who should consider investing.
Quick Note: Medical Properties Trust Update
Members Mailbag: Medical Properties Trust (MPW) is a big-dividend healthcare REIT (the current yield is 10.4%) that has increased its dividend for 10 years in a row. This makes it tempting to a lot of investors. However, MPW short interest (i.e. investors betting against the shares) has also increased to a very high level (and the shares are down significantly). We previously wrote up MPW in detail here. In this quick note, we provide an update on MPW highlighting a few important things for investors to consider.
CEF: 6.9% Annual Yield, Attractive Strategy
If you are truly a long-term income-focused investor, the closed-end fund (“CEF”) we review in this report is attractive for a variety of reasons. For starters, it offers a 6.9% yield and it trades at a compelling discount to its net asset value (“NAV”). However, we particularly appreciate the fund’s flexible, low-turnover and prudently-concentrated long-term strategy (not to mention its very long-term track record of success). After reviewing these qualities, plus multiple critical risk factors, we conclude with our opinion on why this fund remains such an extremely attractive long-term opportunity for income-focused investors.
Big-Yield mREITs: P/B Data and Ratings
Top 25 Big-Yield Funds, Ranked (6.0% to 12.0%+ Yields), ETF and CEF Edition
If you like your investments to pay you high income now—this report may be right for you. We countdown our top 25 big-yield Exchange Traded Funds (“ETFs”) and Closed-End Funds (“CEFs”) with yields of 6.0% to over 12.0%, and carefully highlighting the important nuances of these two distinct investment vehicles, while also avoiding the gimmicky yield traps that sadly dupe so many unsuspecting investors. We start with some high-level advantages and disadvantages of ETFs versus CEFs, then rank our top big-yield funds, starting with #25 and counting down to our top ideas.
PFF: 40 Big-Yield Preferred Funds, Compared
Preferred Stocks are often misunderstood. They can grab the attention of income-focused investors because of their big yields, but beyond that—many investors just don’t understand how they work. In this report, we review the nuances of preferred stocks (that investors absolutely need to know), and then share data on 40 big-yield preferred stock funds, with a special focus on PFF, plus a few more in particular that are worth considering. We conclude with our opinion on who might want to invest, and how best to go about doing that.
The “High Income NOW” Portfolio
9.6% Yield BDC: Risks and Rewards Increasing
The business development company (“BDC”) we review in this report is attractive to many income-focused investors (the current yield is 9.6%, paid quarterly). However, the entire BDC industry is facing growing challenges as the benefits of rising interest rates are increasingly offset by the challenges (portfolio company defaults) caused by an economy headed towards recession. In this report, we review the company (including an overview of the business, the current market dynamics, dividend strength, valuation and risks) and then conclude with our opinion on investing.
Microsoft (MSFT) ChatGPT Note
Microsoft moved fast to recently invest $10 billion in ChatGPT (an artificial intelligence (A.I.) “chat bot” released in November), and on Tuesday MSFT shares were up as the company shared news on how it plans to use the new technology. In this note, we share some brief information and opinion on the Microsoft news.
Fortinet (FTNT) Earnings Note
This cybersecurity stock (and Blue Harbinger Disciplined Growth Portfolio holding) released strong quarterly earnings results after the close on Tuesday (whereby it beat estimates and it raised forward guidance). The shares are up double digits as a result. In this quick note, we provide some color on its prospects going forward.
Enphase (ENPH) Earnings Note
This energy technology company announced powerful quarterly results after the close on Tuesday, exceeding expectations for revenue and earnings. The shares are up double digits in after hours trading, and the powerful long-term growth story remains fully intact. In fact, the business is accelerating—a very good sign.
Attractive Sector CEF: 7.0% Yield, Discounted Price
The CEF we review in this report is attractive for a variety of reasons, including its big monthly distribution payments (which have never once been reduced since the fund’s inception in 2014), its discounted price (it trades ~10.0% below NAV), its reasonable use of leverage (~20.0%) and its compelling sector-specific holdings. We review all the details in this report, and conclude with our opinion on who might want to invest.
JEPI: 11.7% Yield ETF, Critical Points Worth Considering
We recently received an inquiry from a member about the popular JP Morgan Equity Income Premium ETF (JEPI). It’s a very popular ETF thanks to its very high current yield (11.7%) which is paid monthly, and its notably lower volatility than the S&P 500 (it was down a lot less than the S&P 500 in 2022). In this report, we review all the critical JEPI details and then conclude with our opinion about investing in this very popular big-yield ETF.
Big-Yield BDC Update: 2 Contrarian Opportunities Worth Considering
Big-yield BDCs have posted particularly strong gains so far in 2023. However, attractive opportunities remain considering prices are still down from 2022, and the recession that’s already priced into the market may be milder than expected. In this quick note, we share updated data on over 40 BDCs, and then quickly highlight 2 high-yielders that present particularly attractive contrarian opportunities.
Top 10 Big-Yield CEFs, Ranked (6.0% to +11.0% Yields)
Close-End Funds (“CEFs”) are often an income-investor favorite thanks to their big yields (often 6.0% to 11.0%, or higher) which are frequently paid monthly. In this report, we share updated data on over 100 big-yield CEFs (sorted by style, and including a variety of important data points), and then we countdown our top 10 big-yield CEFs (starting with #10 and finishing with our top ideas) for you to consider.
Top 20 Dividend-Growth Stocks, Ranked
In this report, we countdown our top 20 dividend-growth stocks. These may not be the biggest current dividend yields (no yield traps here!), but they present some of the best and biggest long-term income opportunities based on their impressive trajectories of dividend growth (all have at least 10 consecutive years of dividend increases) and ongoing price appreciation potential. We’ve selected these 20 from a list of over 150 top dividend-growth stocks (the 150 stock list is included in this report, along with lots of important data on each of the 150 stocks for your consideration). We also explain the important concept of “yield on cost,” and explain why dividend-growth stocks are particularly compelling right now (i.e. macro conditions). Finally, we rank our top 20, providing explanations for each, starting with #20 and counting down to our top ideas.
SCHD: 100 Top-Dividend Growth Stocks, These 3 Worth Considering
Dividend growth stocks are particularly compelling in the current market environment because many of them have ample financial wherewithal to easily survive the Fed’s recent sharp interest rates hikes (whereas a lot of volatile pure-growth stocks do not). In this report, we explain the construction methodology behind the popular 100-stock Charles Schwab US Dividend ETF (SCHD), including data on all 100 stocks in that fund. Then we review three specific stocks from SCHD that are particularly attractive. We conclude with a critically important takeaway about the attractiveness (and risks) of investing in specific dividend-growth stocks in the current market environment.
Top 10 Dividend Growth Stocks - Down Big
In this report, we rank our top 10 dividend-growth stocks that have recently sold off hard. We include stocks that have increased their dividend for at least 10 years in a row, and we have a special focus on the concept of “Yield on Cost” whereby stocks that appear to offer mediocre current yields actually end up paying much more income over the long term. We also share comparative data on over 100 top dividend growth stocks, followed by an explanation on why dividend growth investing is particularly attractive right now (i.e. macroeconomic conditions). After counting down our top 10 dividend growth stocks (starting with #10 and finishing with our top ideas), we conclude with an important takeaway for investors to consider.
Powerful Dividend Growth: Attractive Mega-Cap Stock, Underappreciated
A lot of investors still think of this mega-cap stock as a high-growth opportunity. In reality, it’s a stable value stock with an impressive track record of dividend growth, and the shares are trading at a compelling valuation. The current yield remains low because the share price has risen even faster than the dividend over the years. In this report, we review the business, competitive advantages, growth trajectory, cash flows, dividend, share repurchases, valuation and risks. We conclude with our opinion on who might want to invest.
Compelling 8.2% Yield, Consumer Staples Stock
You might think a stock yielding over 8% is a red flag (perhaps a company in distress), but the one we review in this report is surprisingly compelling if you are an income-focused investor. The industry is in a slow secular decline, but revenues and the dividend are set to keep growing steadily and the shares offer some margin of safety relative to the current valuation. In this report, we review the business, consider the cash flows (including dividends and share repurchases), the valuation and the risks. We conclude with our opinion on investing.