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11% Yield Bonds From 'AAA' Tenants: Geo Group

Published Fri, 18 Dec 2020 08:25:00 -0500 on Seeking Alpha

Seeking AlphaDividend Ideas | Services 11% Yield Bonds From 'AAA' Tenants: Geo GroupDec. 18, 2020 8:25 AM ET|| About: The GEO Group, Inc. (GEO), Includes: CXWby: Rida MorwaRida Morwa High Dividend OpportunitiesThe #1 Service for Income Investors and Retirees, 9-10% dividend yield.SummaryBonds provide an opportunity to collect interest instead of dividends.
Dividends are voluntary, however bond interest is a required payment that's "owed."
Fear and uncertainty are the market's worst enemy, but they can be your friend if you are a smart investor.
A look at a series of bonds that the GEO Group offers with over 10% yield to maturity.
Co-produced with Beyond Saving
If you are a long-time reader of High Dividend Opportunities, you know that investing in fixed income makes up a large portion of our investment strategy.
Fixed-income investments play an important role in providing stable income for an income portfolio. We diversify our fixed-income investments across preferred equity and bonds.
Bonds have the benefit of being debt positions as opposed to equity positions. This means that the payments that investors collect from bonds are interest, as opposed to dividends. When a company runs into unexpectedly difficult times, like COVID-19, dividends can simply be reduced or even suspended. Debt can only be modified with the consent of the lenders or through the bankruptcy process.
By owning debt, you are putting yourself in a higher priority position to be paid. This makes your income and your principal more secure compared to an equity investment in the same company.
Today, we look at bond opportunities which have 10%-plus yields-to-maturity that are unlikely to last much longer.

The GEO Group, Inc. (GEO) is a company that we are confident to be buying the common equity at a 14% yield. GEO owns and operates prisons, immigration facilities, and other facilities for the use in the US justice system. The price was... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
CORECIVIC 18.06   12.0 1.51 1.76 9.83


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