Saturday, January 18, 2020
Many closed-end funds have managed distribution policies. The idea is for a fund to pay steady dividends that investors can count on, as opposed to the variable dividends often paid by mutual funds and exchange-traded funds (ETFs). Who wouldn’t want to own a fund that pays monthly dividends with a great yield? Nuveen describes these […]
Dividend-paying stocks with very high yields are priced that way to price in the probability of a dividend cut. The higher the yield, the greater the potential for a dividend reduction, at least in the opinion of the investing public. The concept to grasp about high-yield stocks is that whether the dividend gets cut on […]
On a recent live webinar with my subscribers, I received several questions about individual Business Development Companies (BDCs) that have had strong share price gains in 2019. The questions were whether to buy more, hold or sell now. As with any stock market sector or group, there are good BDCs, bad BDCs, and a lot […]
The stock market has had an excellent year for 2019, and one sector that’s been unusually hot recently has been healthcare. Over the last two months, the healthcare stocks in the S&P 500, as a whole, have nearly doubled the return of the rest of the index. That’s impressive, and while many healthcare stocks are […]
With my focus on higher yield investments, I often receive questions about various closed-end funds, often referred to as CEFs. CEFs are actively managed investment pools with shares that trade on the stock exchanges. A lot of these funds carry very attractive yields. The danger is that this is an asset class where it is […]
The filing prospectus for WeWork’s IPO contains this sentence, “Our mission is to elevate the world’s consciousness.” I’m not kidding you. It actually says that. In addition to raising the world’s consciousness, they’re raising cash — a lot of it. Ever since WeWork’s S-1 filing form was released, Wall Street has entertained itself by highlighting […]
Last week, Blue Apron (APRN) found an ingenious way to lift its share price. The company announced a 1:15 reverse stock split. Of course, a reverse split doesn’t add a dime to shareholder value. You simply own one share now for every 15 you used to own, meanwhile the share price jumps 15 fold. In […]
I receive a lot of questions concerning the different investments on closed-end funds (CEFs); particularly the category of high yield investment types. A lot of investors see the yields and monthly dividends and decide to jump into CEFs without understanding what they are buying. You can find several danger signals that will tell when to […]
With my focus on higher yield investments, I often receive questions about various closed-end funds. CEFs are actively managed investment pools with shares that trade on the stock exchanges. A lot of these funds carry very attractive yields. The danger is that this is an asset class where it is hard to separate the good […]
After a decade of zero percent short term rates, in 2016 the Federal Reserve Board started to increase its Fed Funds Rate, which is the rate that drives all short term interest rates. That rate is now effectively 2.5%. Over the same period, rates at the longer end of the yield curve have not risen […]
