Bloomberg cross-asset reporter Sarah Ponzcek discusses declining Treasury yields on Thursday's episode of "What'd You Miss."
Treasury Bond Yields March Lower
The lead story on Thursday's episode of Bloomberg TV's market wrap-up show, "What'd You Miss" (linked to in the image caption above), was the sharp drop in long U.S. Treasury bond yields. Bloomberg's cross-asset reporter Sarah Ponzcek noted that this was partly due to global recession fears, driven in part by the current trade war between the U.S. and China, and partly due to negative government bond yields in other countries such as Germany, France, The Netherlands, and Switzerland, and Japan.
Screen captures via Bloomberg.
As bond investors in those countries seek positive yields, some of them are buying... more
AG Mortgage Investment Trust, Inc. (NYSE: MITT) announced today that its board of directors has declared a quarterly cash dividend of $0.51563 per share on its 8.25% Series A Cumulative Redeemable Preferred Stock (NYSE: MITT PrA). The dividend is payable on September 17, 2019 to holders of record on August 30, 2019.... more
The leveraged ETRACS exchange-traded notes issued by UBS have been historically popular with income investors for two main reasons: substantially high headline yields and historically low cost of leverage. However, the current environment of low asset yields and still-high leverage costs present a challenge to this model. In this article we take a look at the ETRACS Monthly Pay 2xLeveraged Closed-End Fund ETN (CEFL) as well as its sister leveraged notes.
Our key takeaway is that the way these ETNs make distributions makes it difficult for investors to gauge how much additional income the ETN is earning for the additional risk provided by the second turn of leverage. This is due to the fact that leverage costs are both relatively high and taken out of ETN NAVs rather than the ETN... more
Those who already follow me know I have a long-term bullish outlook on high-quality retail REITs in Europe, and I believe the recent take-over of Atrium Real Estate (OTCPK: ATRBF) has proven there is value in the sector. Mall REITs remain cheap vs. historical averages both from an NAV and P/FFO multiple perspectives, and I see several reasons to be contrarians here. Part of the investment thesis overlaps with US high-quality players like Simon Property Group (SPG) and Taubman Centers (TCO), but I believe there are a few geographical reasons as well for optimism when it comes to European REITs. Among the motives, I'd cite the lower amount of retail space per capita and the more brick-and-mortar friendly senior demographic.
I have reviewed a few notable players following their H1 2019... more
The Board of Directors of Lazard Global Total Return and Income Fund, Inc. (the “Fund”) (NYSE: LGI) has authorized the Fund to declare today, pursuant to a level distribution policy, a monthly distribution of $0.08879 per share on the Fund’s outstanding common stock. The distribution is payable on September 23, 2019 to shareholders of record on September 12, 2019. The ex-dividend date is September 11, 2019.... more
The Board of Directors of Lazard World Dividend & Income Fund, Inc. (the “Fund”) (NYSE: LOR) has authorized the Fund to declare today, pursuant to a level distribution policy, a monthly distribution of $0.05799 per share on the Fund’s outstanding common stock. The distribution is payable on September 23, 2019 to shareholders of record on September 12, 2019. The ex-dividend date is September 11, 2019.... more
Automatic Data Processing (ADP) is a "Buy" for the total return and the dividend growth investor. It is one of the largest human resources products and services companies in the world. ADP is a conservative investment for the income investor who also wants good growth potential with the growing world economies and population.
Automatic Data Processing is 6.64% of The Good Business Portfolio, a full position. The company has steady growth and has the cash it uses to increase the dividends each year. As the interest rates decrease, the earnings of ADP are also decreased from the payroll float, but increased capabilities of its products and services more than make up for this decrease.
I use a set of guidelines that I codified over the last few years to review the companies in... more
The Board of Directors of FedEx Corporation (NYSE: FDX) today declared a quarterly cash dividend of $0.65 per share on FedEx Corporation common stock. The dividend is payable October 1, 2019 to stockholders of record at the close of business on September 9, 2019.... more
TransDigm’s 7% Special Dividend Payment Impresses Investors
TransDigm Group Incorporated (NYSE: TDG) has a problem most companies would love to have: too much cash.
Tax cuts, soaring profits, and wider margins have padded the aircraft parts market’s bottom line. Management also recently unload the company’s Souriau-Sunbank for a $920.0-million windfall. That left $2.7 billion left sitting on TransDigm’s balance sheet; far more than executives could profitability invest.
The solution? Pay everything out to shareholders. In early August, TransDigm’s board of directors approved a $30.00-per-share special dividend. Based on the company’s 30-day average trading price, that payment comes out to a yield of seven percent. (Source:” Transdigm... more