Earn a Reliable Income From This Monthly Dividend Stock
Companies paying monthly dividends deserve special attention because, at the very least, it shows that they are committed to returning value to shareholders. In today’s market, there are quite a few companies with monthly distributions. But if I had to pick just one monthly dividend stock, it would have to be Realty Income Corp (NYSE: O).
As the name suggests, Realty Income is a real estate company designed to generate a stream of income. And that income comes from rent. In other words, the company can be considered a landlord–a very big landlord.
If you are a homeowner, you would know that buying and selling real estate is often a lengthy process, not to mention the real estate agent commissions and legal... more
Our Stock Exchange is all about trading. Each week we do the following:
Discuss an important issue for traders; Highlight several technical trading methods – including current ideas; Feature advice from top traders and writers; and, Provide a few (minority) reactions from fundamental analysts. We also have some fun. We welcome comments, links, and ideas to help us improve this resource for traders.
Review In our last Stock Exchange, we asked whether you can analyze the market using psychology. If you missed last week’s edition, check it out.
This Week— A tough stretch focuses attention on yield This important topic has already attracted expert attention, as we see in today’s Trading Tips.
Trading Tips Dr. Brett Steenbarger, who is a strong advocate... more
In July 2015, WisdomTree launched the Barclays Yield Enhanced U.S. Aggregate Bond Fund (NYSEARCA: AGGY), an ETF designed to enhance the yield of the index behind the largest total bond ETF, the $45 billion iShares Core U.S. Aggregate Bond ETF (NYSEARCA: AGG). Thus far, it is a success. AGG has a 30-day SEC yield of 2.23 percent and AGGY has a yield of 2.80 percent. Since inception through June 21, AGGY has a total return of 7.62 percent. Over the same period, AGG gained 5.91 percent.
AGG tracks the Bloomberg Barclays U.S. Aggregate Bond Index. AGGY tracks the Bloomberg Barclays U.S. Aggregate Enhanced Yield Index, what is describes as a "rules-based approach re-weights the subcomponents of the Bloomberg Barclays U.S. Aggregate Bond Index to enhance yield, while broadly... more
By Seth Meyer
In this interview, Portfolio Manager Seth Meyer, CFA, discusses some of the factors that are influencing the U.S. high-yield market.
Q: How late-cycle is the U.S., and how does this impact your view of credit quality?
Seth Meyer: Since the Second World War, the average economic expansion in the U.S. has lasted around 60 months. The current expansion has already lasted 96 months, leading us to believe we are much closer to the end of the business cycle.
Age of post-WWII economic expansion in the U.S. (months)
As we conduct our fundamental, bottom-up credit research, we emphasize two key things: management teams focused on deleveraging and companies with free-cash-flow-generative business models. When valuations get tight and we are near the end of... more
Antero Midstream Partners (NYSE: AM)
AM data by YCharts
Antero Midstream Partners is a new holding of mine and one of my top picks in the energy sector as I feel the company's earnings and distribution growth could outpace its peers over the next few years, leading to overall outperformance. My only regret is not learning of the company sooner, as shares have been on a roll the past few years.
For some background, the company was formed by Antero Resources (NYSE: AR) to own, operate and develop its midstream energy assets. It owns pipelines, compressor stations, processing plants and water handling and treatment infrastructure, and it provides these services under long-term fixed-fee contracts, providing predictable, stable cash flow.
Currently, Antero Midstream... more
Dividend aristocrats such as Exxon Mobil (NYSE: XOM) have long been a favorite among conservative income investors.
The fact that a company has grown its payout for 25+ consecutive years tells you a lot about the predictability of a firm's business, the quality of its management, and how shareholder-friendly the corporate culture is.
Investors can review information on all of the Dividend Aristocrats here.
Of course, it's no secret that in the past few years the worst oil crash in over 50 years has wreaked havoc on the profits and balance sheets of this highly cyclical industry.
As a result, a number of high-yield energy stocks have been forced to cut or even suspend their dividends entirely, and many others have low Dividend Safety Scores.
Let's take a... more
CSB Bancorp, Inc., (OTC Pink: CSBB) today announced that the Company’s Board of Directors has declared a second quarter cash dividend of $0.20 per share on its common stock, payable July 25, 2017 to shareholders of record as of July 3, 2017.... more
UDR, Inc. (NYSE: UDR), a leading multifamily real estate investment trust, today announced that its Board of Directors declared a regular quarterly dividend on its common stock for the second quarter of 2017 in the amount of $0.31 per share, payable in cash, on July 31, 2017 to UDR common stock shareholders of record as of July 10, 2017. The July 31st dividend will be the 179th consecutive quarterly dividend paid by the Company on its common stock.... more
High yield corporate bonds have been a remarkably resilient asset class throughout the post crisis period. This included emerging from the rising default wave that spread across the asset class in 2015 and 2016. And while high yield bonds continue to hover near all-time highs, a renewed threat that first emerged for the category back in the spring is continuing to pick up steam. It remains to be seen how much longer high yield bonds can resist the pressure.
It is worth noting that high yield bonds (NYSEARCA: HYG) are a category that remains as expensive as ever. For example, high yield bond spreads relative to comparably dated U.S. Treasuries are as tight as they have been throughout the post crisis period. What does this mean? That the premium being paid to... more
An inversion of the yield curve has always signaled, at the very least, a steep slowdown, and usually an oncoming recession. With the Fed hiking short-term rates, where do we cut and how?
Below are two graphs, using the Dynamic yield curve tool from Stockcharts.com. In both cases, the dark red line is the yield curve as of several days ago (post-hike). The light red line is the previous yield curve from the beginning of this year (first graph) and from last month (second graph):
Note that the curve is pivoting around a point between the 2 and 5-year yields, at about 1.5%.
At this point, the yield curve is still positive, but if the trend continues, another two rate hikes should be enough to invert at least part of the curve.
About this... more