Concentration can help you get rich, but diversification helps you stay rich. And if you own 25 different flavors of big-yield mortgage REITs—you’re still not exactly “well diversified.” In this report, we countdown our to 10 big-yield opportunities, with a special focus on diversifying your risks (across different investment types) while simultaneously keeping your income high.
50+ Big-Yield CEFs: These 2 Worth Considering
In this quick note, we’re sharing updated data on 50+ big-yield closed-end funds (“CEFs”) from across categories. You likely recognize many of these top names. We’re also highlighting two in particular that are attractive because of management’s new active initiatives to shrink the discount to NAV (a good thing).
Main Street Capital: 40 Big-Yield BDCs Compared
BDCs are often an income-investor favorite (thanks to their big growing dividends). And among BDCs, Main Street Capital (MAIN) has consistently been a top performer. However, investors frequently misunderstand Main Street’s fundamentals (i.e. they incorrectly believe price-to-book is too high and they forget to properly consider special dividends when considering the yield). In this report, we share data on 40+ big-yield BDCs, considering current price-to-book values (versus history), current market conditions (including how much credit spread risk is priced in) and the breakdown of historical returns (in terms of price gains versus dividend income). We conclude with out strong opinion about investing in BDCs in general and Main Street Capital in particular.
Muni Bond CEFs: 2 Big "Tax-Equivalent Yields," Attractive
If you manage a big-yield portfolio in a “taxable account,” this report is for you. Municipal bonds are often exempt fom paying federal income tax, which means you can earn a higher “tax equivalent yield.” What’s more, certain well-managed and prudently-leveraged munipal bond CEFs trade at discounts to NAV and offer particularly compelling yields as management is taking actions to reduce the discounts (a good thing if you own them). In this report, we review two attractive big-yield muni bond CEFs that are worth considering for your taxable account.
Quick Note: Top Growth Stocks Data
Top 10 "High Income NOW" Securities Tear Sheet (June Update)
Quick Note: The Top 10 “High Income NOW” Tear Sheet has been updated for July (and it can be accessed below). There were a few minor updates. For example, we added to a big-yield municipal bond CEF (as an honorable mention) because of management’s announced efforts to reduce the price discount), and we added to a top BDC that recently sold off (as it presents an attractive buying opportunity after a price decline). Disciplined, goal-focused, long-term investing continues to be a winning strategy.
Distribution Quality Scores: 10 Top Big-Yields, Ranked
One of the greatest concepts ever is retiring and simply living off the dividends. No work, no tasks, just big steady distributions rolling in like clockwork (for you to spend and live life however you please). The problem with this, of course, is that many investors end up chasing after the biggest yield opportunities without properly considering the quality of those yields. In this report, we introduce our “Big-Yield Quality Scores,” ranking 10 very popular big yields, including PDI, JEPI, SCHD, USA, ARCC, AGNC and more.
Nvidia: How Much to Hold, Sell
Nvidia is a once-in-a-generation stock (it’s up +24,000% in the last 10 years and +207,000% since going public). And if you’re like a lot of people, you’re sitting on massive gains and a relatively large position. If you own the shares in an IRA then capital gains tax is not an issue, but position size may be. In this quick note, we share some thoughts on how much Nvidia you should hold, how much you should sell, and why (i.e. growth opportunities, taxes and risks).
Big-Yield (8%+) Equity CEF: Big Discount to Narrow
One of the largest holdings in our “High Income NOW” Portfolio got some good news recently, and the share price is up. We expect this CEF’s price discount (versus NAV) to narrow though year end (a good thing), and the long-term performance to be significantly better than most other big-yield opportunities. In this report, we review the strategy (and its relative attractiveness versus other big-yielders), the good news (and why we expect the current discount to NAV to shrink) and finally our strong opinion on who might want to consider investing.
USA's 10.0% Yield: Nudging Novices in the Right Direction
A lot of income-focused investors would miss out on the power of diversified stocks if it weren’t for closed-end funds like the Liberty All-Star Equity Fund (USA), currently yielding 10.0% (paid quarterly). However, a look under the hood reveals this popular fund is only an incremental improvement for many investors, and it omits many of the qualities that make many other CEFs so attractive. In this report, we review USA (including the strategy, distribution, expenses, leverage, holdings and price versus net asset value (NAV)). We conclude with our strong opinion about investing in USA.
Top 10 Growth Stocks: Big Long-Term Upside
The tech-heavy Nasdaq just closed at a new all-time high. And while this is encouraging to some investors, and discouraging to others, the best bet for long-term investors is to simply own geat businesses (and ignore everything else—it’s just noise). In this report, we countdown our top 10 growth stocks, starting with a few honorable mentions. If you are into day trading, options and crypto—ignore this report—it’s not for you. If you like massive long-term compound growth, continue reading for our top ideas.
Updated: Top 10 Growth Stocks, Disciplined Growth Portfolio
Top 10 Big Yields: CEFs, BDCs, REITS (May 2024)
It’s a great time to be a big-yield investor (6% to 13% yields). For starters, the aggressive interest rate hike cycle (that pressured the prices of interest rate sensitive securities lower over the last two years) has now ended (as per fed chair Jerome Powell, it’s unlikely the next interest rate move will be higher). And with interest rates now settling in at their highest levels in over two decades, certain out-of-favor contrarian opportunities are particularly compelling. In this report, we countdown our top 10 big-yield opportunities, including closed-end funds (“CEFs”), business development companies (“BDCs”), real estate investment trusts (“REITs”), dividend stocks and more.
PTY: Despite 3 Big Tax Risks, 10.1% Yield Worth Considering
There seems to be no shortage of big-yield investment ideas on the internet. However, any discussion of the associated tax consequences seems sparse. And despite this spareness, taxes have a major impact on your bottom line and should absolutely be a major consideration before investing. In this report, we first review important details on PTY’s big 10.1% yield, and then dig deeper into three big tax risks (including your account type, your personal tax rates, and the tax inefficiency of PTY versus compelling big-yield alternatives). We conclude with our strong opinion on investing in PTY and some general (but very important) advice on building a big-yield investment portfolio to optimize your after-tax bottom-line income.
Amazon: Ranking "The Magnificent 7" (Midyear Update)
As you can see in the table below, “The Magnificent 7” mega-cap stocks have posted incredible 10-year returns. However, there have recently been some big changes in the market (e.g. interest rate expectations) and to these seven businesses in particular (e.g. maturation, dividends, AI and more). In this report, we provide an update to our January rankings of the Magnificent 7 stocks, with a special focus on Amazon (AMZN) (including its business, four big growth drivers, valuation and risks). We conclude with our strong opinion on investing in Amazon (and each of the Magnificent 7) for the remainder of this year (and beyond).
Ares Capital: Building A Monster-Yield Portfolio (BDCs, CEFs, REITs)
If you are an income-focused investor, building a monster big-yield portfolio (8% to +11% yields), across a variety of categories (such as BDCs, CEFs and REITs), can help you achieve your goals. In this report, we share updated data on the top 7 securities (by market cap) in each of the three categories, and then dive deep into BDC Ares Capital (ARCC) (including its business strategy, current market environment, valuation, dividend safety and risks). We conclude with our strong opinion about constructing a high-income portfolio and about investing in Ares Capital.
This +13% Yield CEF is Attractive (Despite Distribution Source Dynamics)
Many investors love this big-yield CEF because of its strong track record of paying big monthly distributions. Whereas some others are traumatized by the dramatic share price volatility (mostly related to interest rates) in recent years. In this report, we review the fund, the distribution and price volatility sources, the section 19 notices (the distributions have been exceeding investment income and gains) and risks (misleading outside data sources, tax considerations, and the risk of a distribution “right sizing”). We conclude with our strong opinion on who might want to invest.