Warren Buffet has stated many times that his recommendation for long-term investors is to buy a fund or ETF which tracks the market. There is a lot of wisdom to this strategy. First, one does not have to invest time into picking stocks. Many investors do not beat the market with their stock picks every year. Furthermore, on top of this (which is rarely spoken about), the time spent on picking stocks could have been profitably invested elsewhere.
On the trading side, another big advantage of ETFs is that one does not have quarterly earnings announcements (which one would have if one was holding individual stocks). For option sellers, for example, this is a big advantage as one can simply sell options (when volatility is on the high side of its range) and wait for volatility to subside... more
CEFA: Welcome to CEF Insights, your source for closed-end fund information and education brought to you by the Closed-End Fund Association. My name is Diane Merritt. Today, we are joined by Mark Hughes, Portfolio Manager & Research Analyst on The Emerging Markets Debt Team at Western Asset Management. We are happy to have you.
Mark: Thanks, great to be here.
CEFA: Now, investors sometimes refer to emerging market debt as single sector, which might imply common characteristics across the space. However, this market is quite diverse. Can you give us an explanation of the breadth of the EM debt market and the benefits and risk that EM debt represents to investors?
Mark: Sure Diane, emerging markets debt has increased in size and prominence in the market significantly over the... more
The amount of bonds with a negative yield is higher than $10 trillion, according to Bloomberg. This means that by the end of 2019, almost 20% of the Global Government Bond Index will have negative rates.
Who buys these bonds and why?
Let’s first look at the environment.
“Financial repression” is the term used to identify a period of extremely low interest rates and constant liquidity injections. It negatively impacts savers with the questionable objective of forcing – hence the word repression – citizens to stop saving and increase consumption and investment.
The peak of financial repression is nominal negative rates. Advocates of this practice justify it from the fallacious argument that saving is too high and that what you have to do is force economic agents to... more
Aker BP (OTCPK: DETNF) is an exploration and production company with focus on the Norwegian Continental Shelf. The company has been in my investment coverage since February 2014 and stock has been a steady value creator even as the energy industry has gone through turbulent times. The stock has however been sideways for the last 12-months and I believe that Aker BP is in accumulation zone before further stock upside. This investment coverage will discuss the factors that will trigger positive momentum for the Aker BP in the next 12-18 months.
While the coverage will focus on the production, revenue and cash flow growth, it is important to note that Aker BP is paying an annualized dividend of $2.08. This translates into a healthy dividend yield of 6.94%... more
Kimco Realty Corp.'s (KIM) preferred stock offers income investors an attractive alternative to the commercial property REIT's common stock. The preferred stock discussed in this article has proven to be less volatile than the REIT's common stock, which will appeal to income investors that want to protect against downside potential in an increasingly volatile market. An investment in Kimco Realty Corp.'s preferred stock yields 5.48 percent.
A couple of days ago I penned an article on the commercial property REIT titled "Kimco Realty Corp.: Buy This Top-Shelf 6.2%-Yielding REIT If Stocks Tumble Again" in which I recommended the REIT to investors in case the stock market tanks once again. The reason: Kimco Realty Corp. has a strong portfolio, excellent occupancy rates, growth potential,... more
Co-produced with Beyond Saving and PendragonY for High Dividend Opportunities
Previously, we offered a four-article series covering Collateralized Loan Obligations or CLOs. Today, we're proud to offer a fifth 'bonus' article covering a little known trust that invests in CLOs. For readers jumping now into this series, I encourage you to read first the article "How To Boost Your Income With CLOs" because it explains CLO structure and recession resistance.
Today, we are pleased to highlight a new opportunity in the CLO/debt space through XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT). XFLT is a term fund that offers a fully covered 9.5% yield that was recently hiked. The fund has pulled back during the market correction in late 2018 and never... more
Looking to Earn Monthly Income from Stocks? Read This
Remember when Wall Street wasn’t so keen on real estate investment trusts (REITs) about a year ago? Well, that’s when investors should really do their own analysis instead of following the herd. Sure, many REITs did see their share prices tumble at that time, but if you listened to the so-called Wall Street experts, you could be missing out on some serious gains.
Case in point: EPR Properties (NYSE: EPR) is a REIT headquartered in Kansas City, Missouri. Like many of its peers, this real estate stock did experience a downturn around March and April of 2018. At one point, EPR shares were trading in the low $50s.
Since then, though, the stock has made a strong comeback. Over the past 12 months, EPR stock surged more than... more
Don’t Bet Against Nike Inc
When it comes to dividend yields, the best things sometimes come in small packages.
Consider Nike Inc (NYSE: NKE). Over the past decade, NKE stock’s yield has averaged just two percent—not enough to interest most income hunters. Yet Nike’s dividend and stock price have both grown spectacularly, producing an impressive total return, including reinvested dividends, of 621% for the 10 years ended April 30. That crushes the 244% return from the broader S&P 500 over the same period.
Of course, you can’t make any money looking at historical returns. Investors, however, have good reason to believe Nike Inc will continue to generate outstanding profits. I can’t predict how Nike stock will perform over the next quarter or two. Nike... more
Thursday May 23: Five things the markets are talking about US equity futures and European bourses are again under pressure, following Asian stocks lower, as Sino-US trade tensions show little sign of easing. The street is now officially worried that what started as a 'tiff over tariffs' is turning into a full-blown trade war. US Treasuries are steady while the 'big' dollar remains king.
Yesterday's FOMC minutes showed that US policy makers are broadly comfortable with their current "make-no-moves" posture. A number of officials said they thought the Fed might need to raise rates because they expected tight labor markets to eventually lead wages and prices to rise, while others thought there was more labor slack than implied by the unemployment rate, at +3.8% in April.
In FX, the... more
James Brumley says in Kiplinger Investing:
Rich people often get perpetually richer for a reason, so it could be worthwhile to study what billionaires and high-asset hedge funds are plowing their long-term capital into.
Since any collection of stocks is more clearly understood when subjected to yield-based (dog catcher) analysis, this billionaire-choice list is perfect for the dogcatcher process. Here is the low-down, primarily for the 31 dividend paying stocks in the Kiplinger collection of 50 owned by billionaires.
Actionable Conclusions (1-10): Analysts Estimated 21.88% To 61.02% Net Gains From Ten Billionaire Select Dogs Come May 2020
Four of ten top billionaire class dividend stocks by yield were also in these top ten gainers based on analyst 1-year target prices.... more