Published Sun, 22 Sep 2019 09:35:00 -0400 on Seeking Alpha
Co-produced with Beyond Saving and PendragonY
Our Service, High Dividend Opportunities ('HDO'), focuses on finding opportunities that provide a high level of current income- investments that provide a larger than average dividend.
We often target investments with yields over 7%, frequently these investments are immediately labeled as "high-risk", "sucker yields" or are said to be "just returning capital". Often with little more evidence than just pointing at the yield.
There is misunderstanding and a lot that is read into a high-yield. While many high-yield investments are in fact high risk, many low-yield (or zero yielding) investments are also high risk. Dividend yield alone is not a measure of risk.
Yields are high for a number of reasons-
"Pass-through" entities like REITs, BDCs or MLPs are designed to pass the majority of their profits directly to investors. This results in a much higher than average yield. Capital allocation strategy- when companies have excess capital they have a variety of choices of where to allocate it. Many will buy back shares on the market, increasing share-price, others decide to increase the dividend. The company is trading at a low price- yield is the annual dividend divided by the current price, so as price declines the yield goes up. So when a yield is high, it is because the company is cheap. On the other hand, when the yield is low, it is indicative of a company that is expensive. The first step of buy low/sell... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
Older articles featuring Wp Glimcher (WPG):Macerich: To Cut Or Not To Cut Its 11% Dividend (And Why It's Irrelevant)
High Yield Investing: Don't Fear A Great Discount, Yields Up To 16%
False Red Flags And Dividend Myths
Depressed Hotel REITs Provide Opportunities For Dividend Investors
89 Over 10%Yield, Under $10 Priced Dividend Dogs Fall Fortunes
Our High Yield REIT Portfolio
Macerich: 10%-Yield Gem Is On Sale For A Limited Time; Insiders 'Loading Up'
101 10%+ Dividend Yield Dogs Romp In October
Upside-Down Week As REITs Stumble And Yields Surge
Top REIT Preferred Pick: Yield 9.2% From Pennsylvania REIT, Opportunistic Buy