Ares Capital (ARCC) has a long history of being one of the higher quality BDCs that consistently pays a dividend. Its current dividend yield of slightly more than 9% also continues to look attractive. The BDC industry has additionally largely recovered from negative investor sentiments seen throughout December last year. Investors would nevertheless be well served to be discerning in selecting the BDCs they invest in going forward as we move towards the late stages of the credit cycle.
The US economy, the credit cycle, and portfolio quality
In my previous article on ARCC, I emphasized that the US credit cycle is much further along than that in many other countries. This does not, however, imply that a major increase in defaults is on the cards in the near term as predicting the... more
The quarter is ending, but not before another Canadian Dividend All-Star raises its dividend. Last week was not as uneventful as expected. Investors were treated to a surprise dividend bump from one of Canada's best growth stocks. Of note, all figures are in Canadian dollars unless otherwise noted.
Last Week - Results Last week, Alimentation Couche-Tard (OTCPK: ANCUF)(OTCPK: ANCTF)[TSX:ATD.B] surprised with a 12.5% dividend raise.
On the back of record third quarter earnings, Alimentation Couche-Tard also announced a $0.025 per share increase to its quarterly dividend. The raise will extend its streak to... more
Yesterday, I wrote about how the Fed is boxed in. The essence of the article is that, while lower rates are good for the housing market, a fuller yield curve inversion adds to the evidence that a recession may take place first, unless the Fed completely reverses course and starts cutting interest rates very soon.
And so, what do I see when I check out interest rates this morning? This:
For the first time, the yield curve inversion has spread to the 10-year Treasury, which is yielding less than either the 6-month or even the one-month Treasury bill.
On December 3, the camel's nose got inside the tent. The rest of the camel has now followed
On December 3, the 2- and 3- to 5-year Treasury yield inverted, with the shorter maturities paying more than the... more
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Sberbank (OTCPK: OTCPK: SBRCY) is one of the largest banks in the world with 151 mln clients worldwide and 93 mln clients in Russia (70% of population). It is state-owned and enjoys exclusive rights and preferences for most of its activities as well as returns of 20%+ on tangible equity. With such characteristics the bank should be worth much more than its book value.
A Little History
Investor needs a short background in order to understand the nature of things that will be discussed... more
One of the best assets for income-seeking investors is master limited partnerships as these entities boast both high distribution yields and offer tax benefits to those receiving the distributions. The asset class has unfortunately fallen out of favor among investors over the past few years. This is due to a few factors, the biggest of which is the sheer number of them that were forced to slash their distributions during the oil bear market in the middle of the decade. Since that time, many of these companies have changed their business models to be less aggressive and, therefore, safer for investors, and oil production has surged dramatically, which has been proving quite beneficial for many of these companies. Fortunately, there are a few funds that make it easy for an investor to add... more
In my previous article, I stated that Phillips 66 (PSX) had become a great bargain after the Christmas sell-off, and thus, I recommended purchasing the stock. Since then, the stock has rallied 19% in less than three months. Nevertheless, the stock still has great upside potential. In addition, it will announce its next dividend hike in May and will thus offer a nearly all-time high dividend yield.
Phillips 66 operates in four segments: refining, midstream, chemicals, and marketing. The refining segment has been by far the most profitable segment in each of the last four years. In 2018, it generated 55% of the total earnings of the company. The segment thrives thanks to the purchases of price-advantaged heavy crude oil, which trades at a deep discount to WTI and... more
Uniti Group (UNIT) has had its share of drama in the month of March with the bankruptcy of Windstream, its largest customer, looming over its head. Shares of the company have been under severe pressure and one of the shareholders’ worst fears were realized Wednesday when the company cut its dividend by more than 90%. This cut, combined with the release of the company’s fourth quarter earnings provides new context to bondholders, especially those holding the company’s 11.5% yielding 2023 unsecured notes as to the sustainability of the company.
Uniti’s revenue grew for the second consecutive year to over $1 billion. The company’s revenue growth also outpaced its expense growth and lead to income before taxes growing to a profitable $11 million for the... more
Physicians Realty Trust (NYSE: DOC) (the “Company”) announced today that the Company’s Board of Trustees has authorized and the Company has declared a quarterly cash dividend of $0.23 per common share and unit for the quarter ending March 31, 2019.... more
CSB Bancorp, Inc., (OTC Pink: CSBB) today announced that the Company’s Board of Directors has declared a first quarter cash dividend of $0.26 per share on its common stock, payable April 16, 2019 to shareholders of record as of April 2, 2019.... more
While the gold bulls are fighting off a spirited attempt by sellers at breaking the metal’s 6-month rising trend, the yellow metal is being supported by increasing economic fears. The latest such fear to show up in the news headlines involves the near-inversion of a widely watched U.S. Treasury yield curve. Many observers regard this as a sign that the U.S. economy is on the precipice of a recession, and this is yet another selling point for gold. In today’s report we’ll discuss the latest signals from the Treasury market as it pertains to gold’s flight-to-safety demand. I’ll make the case that even with a volatile U.S. dollar, the metal’s “fear factor” will fuel its continued recovery.
There was evidence of strong volatility in the currency market late in the week... more