The UBS ETRACS website has the current yield for LMLB at 34.69%.
This is distorted because it uses some data from before the March 2020 crash, but even adjusting for that a current yield of 23% is likely.
Some of the remaining 2x Leveraged ETNs may present opportunities for those willing to assume the inherent risks.
The Current Status of High Yielding 2x leveraged ETNs With treasury interest rates at their lowest levels ever, some investors seeking higher yields are turning to leveraged instruments. High yielding MLPs and mREITs, typically own assets that generate cash flows over relatively long time periods, such as pipelines and mortgages. The higher yielding MLPs and mREITs generally use leverage to increase their current yields. Other than very distressed junk bonds and... more
Jane's retirement accounts generated a total of $1,852.44 of dividend income for April 2020 vs. $1,972.96 of dividend income for April of 2019.
A total of five companies paid an increased dividend or issued a special dividend during the month of April.
The market ended on a positive note at the end of April but sentiment has faded as tensions with China rise and bleak retail sales figures are announced.
We examine why Jane's income decreased year-over-year even though only one company that cut its dividend paid-out during the month of April.
The market has an odd combination of pessimism and positivity priced into it over the last week. Ironically, not much has really changed other than Jay Powell reiterating the Federal Reserve's commitment to using as much... more
We discuss some baby bonds that offer high yields but are actually quite safe due to what we believe is a misunderstanding by investors.
These baby bonds are issued by business development companies - BDC's which have legal leverage limits such that no BDC baby bond has ever defaulted.
The 2 BDC baby bonds we will discuss are 1) Harvest Capital’s HCAPZ baby bond, and 2) MVC Capital’s MVCD baby bond.
Co-produced with Preferred Stock Trader
The thesis of this article is that there are high yielding baby bonds in the market that are underpriced due to safety fears that are overdone. The baby bonds we are speaking of are one’s issued by BDCs. BDCs are legally required to keep leverage below certain limits for the exact purpose of keeping them out of... more
Occidental Petroleum has chosen to celebrate management re-election by slashing dividends and issuing equity.
We disagree strongly with the issuance of equity at this time - especially given the issues shareholders have faced.
With that said, the company's cash flow is significant and at this point, it's worth investing in.
Occidental Petroleum (NYSE: OXY) is an almost $12 billion company, one of the largest U.S. focused publicly traded oil companies. The company recently had its shareholder meeting where it voted in 11 directors, including its CEO who has a history of destroying shareholder value. Additionally, the company agreed issue 400M shares, partially to pay Buffett's equity. That's a significant potential dilution. Lastly, the company cut its dividend to $0.01 /... more
TMX Group operates the Toronto Stock Exchange and the TSX Venture Exchange.
Higher volatility levels should result in a strong Q2 (on the back of an improved Q1).
The coverage ratio of 2% dividend is in excess of 200%, and a recently instated share buyback program will help to reduce the share count.
Perhaps wait for a dip, but TMX could be a good, defensive dividend payer for any portfolio.
TMX Group Ltd. (OTCPK: TMXXF) is the operator of the Toronto Stock Exchange. The company's share price has increased by approximately 50% since reaching its March lows, as investors realized volatility actually is a good thing for the operators of stock exchanges. Although the recent run in its share price has reduced the dividend yield to approximately 2%, strong... more
A weekly summary of dividend activity for Dividend Challengers.
Companies which changed their dividends.
Companies with upcoming ex-dividend dates.
Companies with upcoming pay dates.
The Dividend Champions list is a monthly compilation of companies which have consistently increased their annual dividend payouts, and the latest edition may be found here. However, since this list is only produced once per month, the data in it can quickly get out of date. Furthermore, with close to 800 companies on the list, the sheer amount of data can quickly become overwhelming. In this weekly series, I highlight recent and upcoming dividend related activity for companies holding Challenger (5-9 years) status.
In the data presented below, Yield is forward annualized and... more
We are strong proponents of dividend-paying stocks for our long-term investment picks.
Ternium suspends dividend to protect liquidity amid elevated uncertainty. Ternium has ample cash flow to pay the dividend.
The firm also does not return money to us through aggressive share buybacks.
We doubled down on our position pre-Q1 earnings due to strong fundamentals.
We may liquidate some of our position on a swing high at the end of its present rally.
As we stated in a recent article, we increased our position in Ternium (TX) in the first quarter. We had multiple reasons for doing this, such as the very keen valuation and the generous dividend on offer. In just over a month, the second tranche of shares we bought are up just over 11% as shares are now trading at approximately... more
After bottoming at $3.52 in March, USAC has bounced back to $12.
It's still down 34%, and it yields 17.5%.
Its large horsepower compression services are vital to its natural gas customers, and they're expensive for a customer to return.
We compare USAC to its two main competitors for valuations, yield and financials.
Looking for a high-yield company that has weathered previous down cycles? Take a look at USA Compression Partners (NYSE: USAC), the biggest compression service provider in the US.
USAC was founded in 1998. It has been through natural gas boom and bust cycles before, but the utilization of its horsepower fleet has been steady, averaging over 90% since 2007. Even in the Energy pullback of 2015-2017, USAC's EBITDA was stable, running between $147 and... more
Energy Transfer has significant DCF which continues to support its lofty dividend of more than 14%.
At the same time, the company is evaluating capital spending reductions to become FCF positive starting next year. That’ll avoid the company needing to access the capital markets.
ET has an incredibly strong financial position due to its Jan. 2020 bond issuance. The bond market is already pricing in future strength for the company.
Our cash flow forecast shows ET generating significant shareholder returns. ET is a strong buy at the current price.
Co-produced with The Value Portfolio
Investing during a downturn involves making proactive decisions to separate quality companies from those that have the potential to drop further. Specifically, it's important to invest in... more
Over the past 33 years, Altria has compounded shareholder wealth at 17% CAGR.
Altria's liquidity is now $5.5 billion – almost enough to cover the dividend all on its own.
Altria’s 9x earnings and 8.6% yield most assuredly compensates investors for its risk profile.
As you may already know, I'm predominantly known for my REIT writing capabilities, but more recently I have begun to explore many other stocks within the "Dividend King" coverage spectrum.
As one of the co-founders of Dividend Kings (on the marketplace) I am continuously looking for non-REITs to complement my own retirement portfolio, while also providing meaningful value to readers.
As my iREIT on Alpha marketplace service continues to grow, I have made the decision to provide the most in-depth REIT... more