Author’s Note: PART 2 of this article is a continuation from PART 1 which was discussed in a previous publication. Please see PART 1 of this article for an initial discussion on the near-term dividend sustainability of Prospect Capital Corp. (PSEC). PART 1 helps lead to a better understanding of the topics/trends that will be discussed in PART 2. The link to PART 1’s analysis is provided below:
Prospect Capital's Dividend And NAV Sustainability Analysis - Part 1 (Including September-October 2017 Dividend Projection)
This two-part article is a very detailed look at PSEC’s dividend and net asset value (“NAV”) sustainability. I have performed this analysis due to the number of readers who have specifically requested such an analysis be performed on... more
Actionable Conclusions (1-10): Analysts Assert Top Ten "Safer" Dividend Energy Dog Stocks Might Net 25.2% to 154% Gains By June 2018
Five of the ten top-gain "safe" dividend energy dogs based on analyst 1 year target prices (tinted gray in the chart above) were verified as being among the Top ten yielders for the coming year. Thus the dog strategy for this group as graded by analyst estimates for June proved 40% accurate.
Ten top probable profit generating trades illustrated by YCharts analytics for June 2018 were:
Seadrill Partners (SDLP) netted $1,540.98 based on a mean price estimated by two analysts combined with projected annual dividend less broker fees. The Beta number showed this estimate subject to volatility 128% more than the market as a... more
Intesa Sanpaolo (OTCPK: ISNPY) is one of the best banks in Europe and this strong position has enabled it to grab a very good deal in Italy. Intesa will buy the "good banks" coming from the liquidation of troubled lenders Banca Popolare di Vicenza and Veneto Banca for a token price of only €1, with the Italian state taking a big hit.
This acquisition has a low risk profile for Intesa, making it financially accretive and attractive for its shareholders. Its dividend commitment has been confirmed, showing the bank’s discipline towards M&A operations. Therefore, Intesa’s high dividend yield is sustainable and attractive for income investors.
Intesa is among the best banks in Italy, having a conservative management and cautious... more
I love to uncover irregularities in the market because I find that those are often the situations where lucrative opportunities lurk. For example, if a single retailer reports poor earnings, it may drag down the entire sector for weeks at a time. But just because Target (TGT) endured a rough three months does not mean that Wal-Mart (WMT) or Home Depot (HD) suffered the same. Amid times of indiscriminate selling are often the opportune times to pick up the best-in-class at a discount as they trade in sympathy with one or two other names in the same space.
A perfect example was the "no-REIT-spared" sell-off in REITs the past few months. Astute investors swooped in and purchased shares of Simon Property Group (SPG), Public Storage (PSA) and Realty Income (O) at generous yields... more
After taking a month off from the series in June (unintentionally of course), I'm back! Each month, I like to summarize which Dividend Aristocrats are expected to increase their dividend in the coming month. As die-hard dividend growth investors, the two of us take great joy in closely monitoring and tracking the changes in our dividend income and dividend payments of the companies we own and companies that we are watching closely. Typically, July is a slower month than June, but there are still some great companies that are expected to reward their shareholders.
Dividend Increases in June 2017
Before I look forward to the expected dividend increases in July, I wanted to quickly summarize the dividend increases that occurred in June 2017 for a few Aristocrats and a few... more
Kamakura-An Updated HJM Model for US Treasuries v2.pdf
The author wishes to thank Prof. Robert A. Jarrow for 22 years of conversations on this topic. The author also wishes to thank the participants at a seminar organized by the Bank of Japan at which a paper addressing similar issues in a Japanese government bond context was presented.
This paper analyzes the number and the nature of factors driving the movements in the U.S. Treasury yield curve from January 2, 1962 through March 31, 2017. The process of model implementation reveals a number of important insights for interest rate modeling generally. First, model validation of historical yields is important because those yields are the product of a third-party curve fitting process that may produce spurious... more
Hawkish comments by European Central Bank (ECB) President Mario Draghi helped lift rates around the world yesterday, including Treasury yields. But it's premature to conclude that the recent flattening of the US yield curve - a bearish signal for the economy - has run its course.
For Europe, however, Draghi's bullish outlook for the economy, accompanied by a forecast that inflation is still on track to rise, lifted yields on both sides of the Atlantic. "All the signs now point to a strengthening and broadening recovery in the euro area," the ECB president said on Tuesday. "Deflationary forces have been replaced by reflationary ones."
Draghi's comments, which surprised the market, have been widely interpreted as a signal that the ECB will soon begin... more
American Express Company (NYSE: AXP) said today that the Board of Governors of the Federal Reserve System did not object to its adjusted capital plan submitted as part of the 2017 Comprehensive Capital Analysis and Review (CCAR). The plan included:... more
The Walt Disney Company (NYSE: DIS) Board of Directors today declared a semi-annual cash dividend of $0.78 per share, payable July 27, 2017 to shareholders of record at the close of business on July 10, 2017.... more
Colony NorthStar, Inc. (NYSE: CLNS) (the “Company”) today announced the Company’s Board of Directors declared a cash dividend of $0.1986 per share of the Company’s 7.15% Series I Cumulative Redeemable Perpetual Preferred Stock (“Series I Preferred Stock”), to be paid on July 17, 2017 to the respective stockholders of record on July 10, 2017. The Company issued 13,800,000 shares of the Series I Preferred Stock on June 5, 2017.... more