Originally published on September 16, 2019
The two-way trade resumes.
Wow! What a week it was. Last week, I mean. Interest rates on the long end of the yield curve got yanked up so much the banking system ended up with a wedgie. The yield on the 30-year T-bond soared 35 basis points, the biggest five-day spike since, well, since a long time ago.
The shift in long-term rates is just part of the story, though. The very shape of the yield curve has changed dramatically since the summer of 2018. The question now is whether that change is being reversed.
Notice the red dotted line in the chart below? That describes the Treasury market just ahead of Independence Day 2018. It's a normal, upward-sloping curve where long rates were higher than shorter-term yields. A year later... more
I like Iron Mountain (IRM). It’s a great company with a well-covered and growing dividend. As such, I’ve been more than happy to write about it for a while now.
My regular readers and followers are no doubt aware of my thoughts on the subject after articles like:
“Monopoly Man’s Monthly Strong Buy Pick: Iron Mountain” in July 2019 “Iron Mountain: Beyond Boxes” in February 2019 “Iron Mountain Has All of the Ingredients of Something Special” in December 2018 “My Strong Buy Thesis: Iron Mountain’s Durable Model Is Misunderstood” in July 2018 “Iron Mountain’s Valuation Gap Is Narrowing” in August 7, 2017. I’d keep going. But more than likely, even my non-regular readers and new followers are getting the point.
Now, I know this company has had its... more
This is part of the Fund Spotlight series that we have been running on our service to get members more familiar with the funds in our portfolios. While we specialize in closed-end funds ("CEFs") in some cases we use open-end mutual funds to 1) "hide out" and wait until discounts in some of our key and recommended funds widen out and hit our buy targets, and 2) to dampen portfolio volatility, especially for the more risk averse members.
Most of the time, we are using these fairly unknown and esoteric funds that have a high degree of specialization in a certain area of the bond market. You will likely not see a fund report on a "total bond fund" solution like Fidelity Total Bond or PGIM Total Bond.
We think investors can significantly improve the bond allocation performance by... more
Author’s Note: This article is a detailed analysis of NEWTEK Business Service’s (NEWT) dividend sustainability. I have performed this analysis due to the continued number of readers who have specifically requested such an analysis be performed on NEWT (since I have not written a “focus” article on this company in over a year). For readers who just want the summarized conclusions/results, I would suggest to scroll down to the “Conclusions Drawn” section at the bottom of the article.
Focus of Article:
The focus of this article is to provide a detailed analysis with supporting documentation (via three tests) on the dividend sustainability of NEWT through the end of 2020. This analysis will be provided after a brief overview of NEWT’s regulated investment company... more
US Treasury 10-year yields could drop to 1% or below, Sri-Kumar Global Strategies President Komal Sri-Kumar told viewers of Real Vision’s Trade Ideas.
On September 18, the Fed cut its benchmark interest rate by 25bps, a move which Sri-Kumar pointed out was already fully priced in by the market.
Regardless of the FOMC meeting noise, Sri said investors should be “looking more at 1 or 1.5 years ahead rather than how to position themselves over the next week, which is essentially impossible to do.”
Still Bullish on Bonds
Sri has nailed the bond call and remains bullish on bonds today:
He told Real Vision’s Jake Merl that the main driver for Treasuries over the next year won’t be the Fed. Instead, it will be the trade war between the... more
Project Background The DGI For The DIY portfolio was created in 2013 when I liquidated the mutual funds in my IRA and used the proceeds to create a new portfolio of dividend growth stocks. I've been writing quarterly updates on the portfolio ever since; documenting its progress and my lessons learned as a Do-It-Yourself "DIY" dividend growth investor "DGI".
I am a 41-year old engineer, married, and have three young children. I share my personal story in an attempt to inspire others to take control of their finances and plan for their future. I've found that writing these updates keeps me focused on the goal ahead, which is securing a growing income stream to help fund my future retirement. Knowing that I'll be documenting everything for others to see helps me to stay on the right path... more
AXIS Capital Holdings Limited ("AXIS Capital") (NYSE: AXS) today announced that the Company’s Board of Directors has declared a quarterly dividend of $0.40 per common share. The common dividend will be payable on October 15, 2019, to shareholders of record at the close of business on October 3, 2019.... more
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Park Hotels & Resorts (PK), headquartered in Tysons, Virginia, was established as an independent company in 2017, following its spin-off from Hilton. It is one of the largest publicly-traded lodging REITS with a portfolio of 48 premium-branded hotels and resorts with over 29,000 rooms located primarily in prime US markets with high barriers to entry.
over 85% of the portfolio is in the luxury or upper upscale segment over 95% of the portfolio is located in the US, including locations in 13 of the top 25 markets over 70% of the portfolio is located in the central business districts of major cities or resort or conference destinations Hilton San Diego Bayfront
Since the spin-off, Park... more
The Board of Directors of Marsh & McLennan Companies, Inc. (NYSE: MMC) today declared a quarterly dividend of $0.455 per share on outstanding common stock, payable on November 15, 2019, to stockholders of record on October 11, 2019.... more
As the overall market struggles to find a direction, I am trying to plan ahead and start moving some of my funds into healthcare dividend stocks that are currently at a discount compared to their peers. My first pick was CVS Health (CVS), but now, I am looking for a big pharma candidate and Bristol-Myers Squibb (NYSE: BMY) fits my criteria. The stock has fallen about 20% in the last twelve months, which appears to be a result of the market not being keen on their decision to acquire Celgene (CELG). In addition, the company's blockbuster oncology drug, Opdivo, has a hard time matching up with Merck's (NYSE: MRK) Keytruda in a few key indications. However, I believe Bristol-Myers Squibb's "BMS" long-term outlook and healthy dividend make BMY a great buy at these levels.
I will discuss... more