A Sustainable And Growing 8% Yield Is Driving NorthStar Realty Finance's Outperformance [View article]
I like the gradual conversion of NRF from a mortgage REIT to more of an equity REIT. Hopefully, this will allow the stock to increase enough over time for the yield to drop to the 6% area while the CAD continues to slowly rise.
Fifth Street Finance: A Dip In This 11% Yielder Is An Opportunity [View article]
At this time, I'm avoiding agency REITs (such as NLY, MFA, AGNC, etc.) because when the Fed finally does raise interest rates, the spread will probably decline. There are some well-run companies in that sector, it's just that I'd prefer to buy them when short-term interest rates are high (probably years from now) and there is a neutral or inverted yield curve. Some of their dividends are outstanding right now, the highest around, but I don't want to be surprised by announcements of dividend cuts after the bell or before the market opens.
My goal is to invest in high-yield dividend/distribution stocks (selected REITs, mortgage or equity, BDCs and MLPs) which appear to be able to at least maintain dividends over the following twelve months, preferably to have one or two increases in the dividend/distribution over that time frame. And some financial company preferreds in the 7% to 8.5% yield range which are priced near or somewhat below par (not too far below par, for that may be a sign of problems in the company), if you can find some, are good to have.
Fifth Street Finance - Caught In The Fed's Zero Interest Rate Web [View article]
This is a generally good article. I think that FSC, because of its miscalculation in interest rates being raised (referring to your article about their large amount of floating rate loans) and their low leverage as compared to other BDCs, has underperformed in its dividend payouts over the past year. Many BDCs have raised their dividends during that time, but FSC has merely treaded water in that respect. Their intentions were good, but their management has continually erred in their interest rate predictions.
4 Ex-Dividends To Consider, 2 To Avoid This Week [View article]
FSC reduced its monthly dividend in Jan. 2012, but that's no reason to believe that it will be reduced again. The "reduction" in Jan. 2011 was not a reduction at all, rather it was a transition to a specific monthly dividend. The previous four months' monthly dividend (August to November, 2010) was a transitory period from a quarterly to a monthly dividend which equalled the pro rata quarterly dividend amounts from before that time period.
REIT Dividends Are Like Snowballs: All You Need Is Wet Snow And A Long Hill [View article]
Good article. I've been a full-time income investor for eleven years and investing in some REITs (also some BDCs, MLPs, CANROYs and preferreds of income stocks) has benefitted me greatly in my "normal" IRA. I recently opened up a ROTH IRA and, after funding it, bought one of the triple-net REITs. I will let compounded dividend interest do the work while funding it further every year in the triple-net REIT sector. One day in the more distant future, I'll start drawing tax-free dividend income from the ROTH IRA and expect it to be a good source of income in case potential cutbacks to Social Security occur.
Prospect Capital: This 11% Yielder Pays Dividends Monthly And Is Worth Buying Now [View article]
Thgere should be a correction. The stock was not priced at $11.92 per share in the latest secondary offering. That was the closing price the day before the secondary was actually issued. By the reaction of the stock price that the secondary shares started selling on the following day, the secondary likely sold for around the $10.95 to $11 per share range although pricing wasn't disclosed by the company in its press release.
QE Forever Gives Non-Agency mREITs A Competitive Advantage Over Their Peers [View article]
IMO, this was a good article which helps distinguish the agency MREITs which rely on the short/long-term interest rate spreads with their residential loans from the non-agency MREITs which primarily make commercial loans/own some properties.
For Dividends, It Might Be Time To Explore Business Development Companies [View article]
I've been investing for income during the last eleven years and BDCs are my main choice for income right now. With annual yields of 7% to 11%, they beat the banks easily although, as with any stock, there is some risk involved. Granted, most BDCs were forced to cut their dividends during the dark days of 2008/2009 and a few, even suspending their dividends but this was a multi-generational credit crisis, the scope of which had not been seen since the Great Depression. If this was a more "normal" recession, such as those in the 1970's, 1980's or 1990's, dividends would have been maintained. The few BDCs which were around during that time maintained or gradually increased their dividends even through recessions in those time periods.
As it is, one always has to watch the companies which they invest in. Right now, BDCs in general are maintaining or raising their dividends. At least, leverage isn't too great (most BDCs restrict their leverage to .6 to 1 or lower, having learned from the credit crisis not to lever up too much). Compare that to MREITs, which have debt to equity leverages between 3:1 and 8:1.
I'll continue my investments in BDCs while keeping an eye on ganeral financial news.
QE - Infinity: A Game Changer For Mortgage REITs [View article]
RSO should not be lumped in with agency/non-agency residential mortgage REITs such as CIM and NLY, as RSO's business model is entirely different. RSO doesn't depend directly upon the long-term/short-term interest rate spread as does CIM and NLY, and can withstand higher interest rates more easily.
Confessions Of A 'DGI Lite' Investor, Part 3: Care & Feeding Of The DGI Lite Dogs [View article]
Miz,
I've been investing full-time in high-dividend stocks (MREITs, BDCs, MLPs, preferreds) for eleven years with no other income until I'm eligible for SS a few years from now. It's been a good way to go for me. If I had invested in nothing but non-dividend paying stocks from the beginning, I would have run out of funds to live on about four years ago. As it is, my portfolio is far greater than when I started out simply because I was able to use surplus dividends beyond my living expenses to reinvest in more high-yielders.
Confessions Of A 'DGI Lite' Investor, Part 3: Care & Feeding Of The DGI Lite Dogs [View article]
I think you're on the right track. By reinvesting dividends that you don't need for everyday expenses, you can get a "raise" every quarter, and those "raises" will get larger with time as the overall dividend income increases.
10.50% Yielding Prospect Capital Offers Growth Too [View article]
One should never buy a stock just because it pays a monthly dividend rather than a quarterly dividend. The fundamentals come first, not the frequency of dividends.
That said, PSEC seems to have a secure dividend, based on NII being well above the dividend level for the past couple of quarters and the likely continuation of that for the next couple of quarters. The First Tower acquisition in relation to how it affects NII will be interesting to monitor.
Dividends Are The Only Reliable Return In Today's Range-Bound Market [View article]
I've been subsisting on dividends/distributions from BDCs, (M)REITs, MLPs and preferreds for eleven years. Despite the ups and downs of the market, the dividends/distributions have been welcome and in fact, enabled me to be able to buy a new house in cash recently.
My bank gives me about one-tenth of one percent in interest from my checking account...CDs can give an 1.5% annual interest yield, but who can live on that these days, even on a half a million dollar portfolio if there is no other income?
3 Reasons To Buy This $10 Stock With A 10% Yield [View article]
PNNT is a solid BDC, but some other BDCs have been raising their dividends more than PNNT over the past year or two. The dividend looks sustainable as compared to expected NII over the next year, but don't look for much of a dividend increase if any.
A Sustainable And Growing 8% Yield Is Driving NorthStar Realty Finance's Outperformance [View article]
Is Fifth Street In The Wrong Neighborhood? [View article]
You don't seem to cover TCPC at this time, but that BDC company also declared an increase in its Q2 dividend, from .35/share to .36/share.
Fifth Street Finance: A Dip In This 11% Yielder Is An Opportunity [View article]
My goal is to invest in high-yield dividend/distribution stocks (selected REITs, mortgage or equity, BDCs and MLPs) which appear to be able to at least maintain dividends over the following twelve months, preferably to have one or two increases in the dividend/distribution over that time frame. And some financial company preferreds in the 7% to 8.5% yield range which are priced near or somewhat below par (not too far below par, for that may be a sign of problems in the company), if you can find some, are good to have.
Fifth Street Finance - Caught In The Fed's Zero Interest Rate Web [View article]
4 Ex-Dividends To Consider, 2 To Avoid This Week [View article]
REIT Dividends Are Like Snowballs: All You Need Is Wet Snow And A Long Hill [View article]
Prospect Capital: This 11% Yielder Pays Dividends Monthly And Is Worth Buying Now [View article]
QE Forever Gives Non-Agency mREITs A Competitive Advantage Over Their Peers [View article]
For Dividends, It Might Be Time To Explore Business Development Companies [View article]
Granted, most BDCs were forced to cut their dividends during the dark days of 2008/2009 and a few, even suspending their dividends but this was a multi-generational credit crisis, the scope of which had not been seen since the Great Depression. If this was a more "normal" recession, such as those in the 1970's, 1980's or 1990's, dividends would have been maintained. The few BDCs which were around during that time maintained or gradually increased their dividends even through recessions in those time periods.
As it is, one always has to watch the companies which they invest in. Right now, BDCs in general are maintaining or raising their dividends. At least, leverage isn't too great (most BDCs restrict their leverage to .6 to 1 or lower, having learned from the credit crisis not to lever up too much). Compare that to MREITs, which have debt to equity leverages between 3:1 and 8:1.
I'll continue my investments in BDCs while keeping an eye on ganeral financial news.
QE - Infinity: A Game Changer For Mortgage REITs [View article]
Confessions Of A 'DGI Lite' Investor, Part 3: Care & Feeding Of The DGI Lite Dogs [View article]
I've been investing full-time in high-dividend stocks (MREITs, BDCs, MLPs, preferreds) for eleven years with no other income until I'm eligible for SS a few years from now. It's been a good way to go for me. If I had invested in nothing but non-dividend paying stocks from the beginning, I would have run out of funds to live on about four years ago. As it is, my portfolio is far greater than when I started out simply because I was able to use surplus dividends beyond my living expenses to reinvest in more high-yielders.
Confessions Of A 'DGI Lite' Investor, Part 3: Care & Feeding Of The DGI Lite Dogs [View article]
10.50% Yielding Prospect Capital Offers Growth Too [View article]
That said, PSEC seems to have a secure dividend, based on NII being well above the dividend level for the past couple of quarters and the likely continuation of that for the next couple of quarters. The First Tower acquisition in relation to how it affects NII will be interesting to monitor.
Dividends Are The Only Reliable Return In Today's Range-Bound Market [View article]
My bank gives me about one-tenth of one percent in interest from my checking account...CDs can give an 1.5% annual interest yield, but who can live on that these days, even on a half a million dollar portfolio if there is no other income?
3 Reasons To Buy This $10 Stock With A 10% Yield [View article]