Seaspan Corp. (SSW) is the world's largest independent owner, operator, and manager of containerships. It has an average of five years remaining on its long-term charters, which represent 90% of its revenue. The company has had its ups and downs over the past few years and actually cut its common dividend from $.375 to $.125 in April 2017.
However, management has made a couple of moves in 2018 which should help the company's prospects moving forward. They made a new alliance with Prem Watsa's Fairfax Financial Holdings, which helped to shore up their balance sheet.
In late March '18, management also announced that it had acquired the remaining 89% it did not own of Greater China Intermodal Investments LLC ("GCI") from affiliates of The Carlyle Group and... more
PHK: High Yield and A Hefty Premium Yesterday, I discussed an overview of the 11 taxable-income, closed-end funds from PIMCO. In it, I said I'd be coming back to individual funds for a closer look. I want to start with a fund that I've not discussed previously other than in passing references: PIMCO High Income Fund (PHK).
I'm starting with PHK for a few reasons.
First, I've owned the fund for a while. When I note that in my disclosure statements, I often get asked "Why?". Why own a fund with a massive premium, negative UNII, and a declining NAV? Legitimate questions all, and I hope to explain as we go on.
Another reason is that PHK is at the top of the pile for yield and market return. That has to be worth paying attention to, right?
Add to that... more
In a 7/5/18 blog post, I introduced a Real Estate Investment Trust (REIT) yield-hog screen. Obviously, it seeks high yields. Less obviously but more important, it first carefully prequalifies the candidates by eliminating REITs I deem most vulnerable to outsized distribution cuts by considering REIT cash on cash return and leverage. But upon using the screen in practice, I discovered a hitch which I address here through a revision.
The Recipe Most of the model is exactly as it originally stood. Hence, most of the details presented here are reproduced verbatim from my 7/5/18 post. To spare you the burden of re-reading everything, I conspicuously identify which items are new.
I start by eliminating a sub-group known as mortgage REITs. I want genuine real estate operations, not... more
On the latest edition of Market Week in Review, Senior Quantitative Investment Strategy Analyst Kara Ng and Sam Templeton, manager, global communications, discuss why we should pay attention to the US yield curve, President Trump's tariff talk, and the latest corporate earnings reports.
US yield curve getting close to inverting The slope of the US yield curve has fallen to just 24 basis points and getting close to inverting. Ng says "we should pay attention because an inverted yield curve is historically one of the best predictors of a downturn." She notes over the last 5 economic cycles, an initial inversion preceded an economic recession between 9 and 18 months, while equity markets tend to peak about 6 months before a recession. This means there's a large negative... more
Tenneco Inc. (NYSE: TEN) announced today that its Board of Directors (“Board”) has declared a quarterly cash dividend of $0.25 per share on its common stock. The dividend will be payable on September 21, 2018 to shareholders of record as of September 4, 2018. Future dividends will be subject to Board approval.... more
CYS Investments, Inc. (NYSE: CYS) (“CYS”) today announced that CYS has decided to terminate its Dividend Reinvestment and Direct Stock Purchase Plan, effective as of July 20, 2018, in connection with the pending merger pursuant to the previously announced Agreement and Plan of Merger, dated as of April 25, 2018, by and among Two Harbors Investment Corp. (“Two Harbors”), Eiger Merger Subsidiary LLC and CYS (the “Merger Agreement”).... more
JPMorgan Chase Financial Company LLC announced today the quarterly coupon amount for the Cushing® 30 MLP Index ETN (NYSE Arca: PPLN). The table below summarizes the coupon amount for the Cushing® 30 MLP Index ETN (the “Notes”).... more
I’m all for buying well known dividend names when they’ve experiencing sell-offs. I’ve made a lot of money doing so. A few months back, I bought PepsiCo (PEP) shares during their sell-off at $100.96 and today, I’m sitting on ~14.5% gains. A month or so after that, I picked up shares of Dominion Energy (D) at $63.65 during its sell-of and now I’m sitting on double digit gains there as well. More recently, I added to Starbucks (SBUX) when it’s share price crossed below my price target of $48. Every time I buy these beaten down names, there will be naysayers. However, I’ve learned to trust myself over the years when it comes to identifying high quality value and I’ve increased my wealth because of it.
This brings us to today. Another well... more
Main Thesis In this article, we will take a look at the SuperDividend REIT ETF (SRET) for its suitability as an income investment. The fund takes a rather blind approach at asset allocation in mirroring an index of simply the 30 highest yielding REITs in the world. Notwithstanding this, there are some solid common stocks held in the portfolio that can deliver a sustainable yield. Active managers might consider holding individual positions mentioned here, but SRET can be a convenient way of delivering a high yield without taking on a lot of volatility. The challenge is that they have OK distribution coverage and no money saved in UNII, so the distribution is a little precarious. Furthermore, both equity and mortgage REITs face some pretty substantial headwinds because of the flattening... more
Reader Selections Since May 2017, any dividend-paying stock mentioned in a message, e-mail or comment to the author is fair game for a follower favorite listing in this article. Thus, It is possible that only rogues and discontinued, or dreadful, doubtful dividend issues may appear.
Lately readers and other contributors have questioned the intent, purpose, validity, and usefulness of my daily stock lists. Best, however are those that truly catch errors in my calculations. Examples like my blunders featuring a non-dividend paying Frontline (NYSE: FRO) stock, and giving General Mills the GM ticker symbol in past months come to mind.
Below are 48 tangible results for the follower favorite & rogue equities and funds mentioned between June 15, and July 15, 2018.