What a Year 2017 was! No matter where you look in 2017 - returns were phenomenal (any "total return" in this article = YTD, based on 12/13/2017 closing prices).
QQQ Total Return Price data by YCharts
Main (large cap) indices:
PowerShares QQQ ETF (QQQ)? Up 32.59% SPDR® Dow Jones Industrial Average ETF (DIA)? Up 27.64% SPDR® S&P 500 ETF (SPY)? Up 21.04% Broader (small cap) indices:
iShares Russell 2000 Growth ETF (IWO)? Up 20.81% iShares Russell 2000 ETF (IWM)? Up 13.64% (quite disappointing...) iShares Russell 2000 Value ETF (IWN)? Up "only" 7.14% (very disappointing...) Even if we look at sectors - the picture only change slightly with nine out of 11 sectors posting double-digit total returns and only two sectors currently having... more
Chimera Investment Corp.'s (CIM) fixed-to-floating Series B preferred stock is a promising income vehicle that combines a high degree of principal protection with high recurring dividend income on both a fixed and floating basis. While I don't like the mortgage REIT's common stock anymore due to concerns over valuation, the preferred stock looks like a good deal in my view.
I have penned an article on Chimera Investment Corp. lately entitled "Is A Dividend Hike In The Cards in which I argued that despite potential for a near-term dividend hike on the back of robust dividend coverage stats, income investors pay full retail price for the mortgage real estate investment trust's dividend stream. When the mortgage REIT was in the bargain bin in early 2016 I... more
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 a 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 February-April 2018 Dividend Projection)
This two-part article is a very detailed analysis of PSEC's dividend and net asset value ("NAV") sustainability. I have continued to cover this topic due to the number of readers who have specifically requested such an analysis be performed on PSEC at... more
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Investment Thesis: Not all EBITDA and funds flow are created equal. Going deeper shows that Altagas (OTCPK: ATGFF) deserves its lower valuation. The risks remain high and the debt to EBITDA metrics of the combined company will dwarf anyone else's in the sector. We would stay away and allocate capital elsewhere.
Altagas produced third quarter numbers that came in slightly ahead of our estimates. Normalized funds from operations (FFO) moved to $143 million from $137 million last year.
Source: Altagas Q3-2017
The per share metrics however were less impressive as year over year normalized FFO declined showing that FFO is not keeping pace with share issuance.
The stock moved higher as Board approved a 4.3% dividend hike. While the stock has become relatively more... more
Actionable Conclusions (1-10): Brokers Estimate 53.3% To 123.65% Net Losses For Ten Wall St. Unfavored Stocks By 1Yr. Targets To December 2018
Actionable Conclusions (11-20): Brokers Estimate -1.7% To -21.78% Net Losses For Ten Wall St. Unfavored Stocks Ranked By Yield To December 2018 One of the ten top Wall St. Unfavored stocks by yield were among the biggest ten losers for the coming year based on analyst 1-year target prices (it is tinted gray in the chart above). So, the yield-based forecast for Wall St. Target Unfavored, as graded by Wall St., was 10% accurate.
Ten probable loss-generating trades revealed in YCharts for December 2018 were:
Pier 1 Imports (PIR) was projected to lose $217.80, based on a median target estimate from fifteen analysts, despite dividends,... more
Unibail-Rodamco (OTCPK: UNRDY) has announced an agreement to buy its peer Westfield (OTCPK: WEFIF), a deal that makes strategic sense and does not change Unibail’s investment case, which is biased to a high and sustainable dividend yield.
Company Background Unibail-Rodamco is the largest European real estate company by market capitalization, being focused in large size shopping centers in Continental Europe. Unibail has a market capitalization of about $26 billion and trades in the U.S. on the over-the counter market. Its closest competitor is the French company Klepierre (OTCPK: KLPEF), but also its global peers Simon Property Group (SPG) and Westfield.
Unibail is focused on large shopping centers with high quality and good location, being a key competitive advantage... more
This Monthly Dividend Stock Yields 7%
How much have you put aside for retirement?
Thing is, it never quite feels like enough, does it? It’s hard to say with 100% certainty if your money will last.
Low interest rates have made it even tougher. Nowadays, even a seven-figure portfolio throws off hardly any money. It has forced savers to reconsider their options and look to new sources of investment income.
One solution? Business development companies (BDCs). BDCs represent publicly traded companies that invest in or lend to privately held businesses. And thanks to a number of tax loopholes, many of these firms pay out yields of five, seven, and even nine percent.
Main Street Capital Corporation (NYSE: MAIN) tops my list. The firm... more
Amgen Announces Dividend Increase
Today’s chart highlights the power of a growing dividend.
Most income investors want a large, upfront yield. But for those with a little more patience, a smaller, growing distribution can often make a smarter proposition.
Case in point: Amgen, Inc. (Nasdaq: AMGN). In 2011, the biotech giant paid its first dividend to shareholders. Over the past few years, management has boosted the payout by an average of nearly 30% annually.
That trend has continued in the latest Amgen dividend news. On Tuesday, the company raised its quarterly distribution to $1.32 per share. This represents a 15% increase from the previous payout. (Source: “Amgen Announces 15 Percent Increase In 2018 First Quarter... more
Realty Income Announces Dividend Increase
Today, we check in on an established business churning out steady dividends.
Longtime readers know we love real estate investment trusts, or REITs. These businesses allow you to collect regular income from rental properties without dealing with tenants.
Case in point: Realty Income Corp (NYSE: O). The company buys recession-proof commercial buildings like auto shops, restaurant chains, and convenience stores. Management then leases these properties back to businesses in long-term contracts, with inflation bumps baked into the rent payments.
Most of these profits get passed on to shareholders in the form of stable, growing distributions. Over its 48-year operating history, the... more