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cliff
Explorer ○○

WANTED: 7%+ Yielders. Apply here.

 

White, white-haired, reasonably good-looking, hetero- male seeks long-term, intimate relationships with common, preferred or baby bonds yielding 7% or greater.  Monthly or quarterly intimate moments required.  Funds need not apply.

 

Here's the thing.  I'm an income investor.  The only return I'll ever get from my bunch of stuff is the cash that is paid out to me.  Prices going up don't mean I buy more toys or booze; prices going down don't mean I buy less toys and booze.  My current yield on the total (ex-cash) is 6.3%, so when dividends are reinvested I'm getting 6.3% nowadays.

I do like to do better than that when I find a way.  So I'm asking for ideas for common, preferred or baby bonds that yield at least 7% currently.  I won't consider them recommendations nor make judgments as to how something you know of wound up being a 7%+ yielder.  Just looking for ideas.

In the spirit of I'll-show-you-mine-if-you-show-me-yours, here are ones I already hold that currently yield more than 7%:

  •  Targa Resources (TRGP)  9.2% yield
  • Macquarie Infrastructure  (MIC) 9.1% yield
  • Energy Transfer (ET)  9.1% yield
  • Enbridge Series 5 (EBGEF)  6.9% yield      [honorable mention for being 'close enough']
  • Iron Mountain (IRM)  8.0% yield
  • Tanger Outlet (SKT)  8.7% yield
  • Nustar Logistics (NSS)  8.6% yield
  • American Finance Trust Series A (AFINP) 7.5% yield
  • Ladenburg Thalman Series A (LTS-A) 8.0% yield
  • AGNC Investment Corp (AGNCO)  7.2% yield

Notes: 

(1) If anyone is tempted to buy one of those today, be advised I'm in the green on all of them.  That means you'd be paying more than I did.

(2) Joe, retiredinSC, made me aware of that Enbridge Series 5 preferred mentioned above which is guaranteed to make me both money and happy.  For that I awarded him 50% of my kudos given.  (The other 50% went to Norbert for something I can't remember - I may have been drinking.)  So if you mention a security that I decide to get intimate with, I'll give you a kudos, also.

 

 

0 Kudos
23 Replies
bujia
Explorer ○○

Re: WANTED: 7%+ Yielders. Apply here.

Hi Cliff,

Correction om AGNC. It pays .16/share monthly = $1.92/yr.     1.92/18.03= 10.65%

 

Gene(I own it)

0 Kudos
cliff
Explorer ○○

Re: WANTED: 7%+ Yielders. Apply here.


@bujia wrote:

Hi Cliff,

Correction om AGNC. It pays .16/share monthly = $1.92/yr.     1.92/18.03= 10.65%

 

Gene(I own it)


 

Gene, correction on your correction.  Note that I don't hold AGNC.  I have AGNCO as listed.  Thanks.

0 Kudos
bujia
Explorer ○○

Re: WANTED: 7%+ Yielders. Apply here.

OOPS!  Noted.

Gene

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JonSnow
Explorer ○

Re: WANTED: 7%+ Yielders. Apply here.

AmTrust Financial preferred AFSIN is yielding > 10% at the current price.  They abused the common shareholders when they went private, but they are still paying on the prefereds (which now trade OTC).

0 Kudos
ElLobo
Participant ○○○

Re: WANTED: 7%+ Yielders. Apply here.


@cliff wrote:

 

White, white-haired, reasonably good-looking, hetero- male seeks long-term, intimate relationships with common, preferred or baby bonds yielding 7% or greater.  Monthly or quarterly intimate moments required.  Funds need not apply.

 

Here's the thing.  I'm an income investor.  The only return I'll ever get from my bunch of stuff is the cash that is paid out to me.  Prices going up don't mean I buy more toys or booze; prices going down don't mean I buy less toys and booze.  My current yield on the total (ex-cash) is 6.3%, so when dividends are reinvested I'm getting 6.3% nowadays.

I do like to do better than that when I find a way.  So I'm asking for ideas for common, preferred or baby bonds that yield at least 7% currently.  I won't consider them recommendations nor make judgments as to how something you know of wound up being a 7%+ yielder.  Just looking for ideas.

In the spirit of I'll-show-you-mine-if-you-show-me-yours, here are ones I already hold that currently yield more than 7%:

  •  Targa Resources (TRGP)  9.2% yield
  • Macquarie Infrastructure  (MIC) 9.1% yield
  • Energy Transfer (ET)  9.1% yield
  • Enbridge Series 5 (EBGEF)  6.9% yield      [honorable mention for being 'close enough']
  • Iron Mountain (IRM)  8.0% yield
  • Tanger Outlet (SKT)  8.7% yield
  • Nustar Logistics (NSS)  8.6% yield
  • American Finance Trust Series A (AFINP) 7.5% yield
  • Ladenburg Thalman Series A (LTS-A) 8.0% yield
  • AGNC Investment Corp (AGNCO)  7.2% yield

Notes: 

(1) If anyone is tempted to buy one of those today, be advised I'm in the green on all of them.  That means you'd be paying more than I did.

(2) Joe, retiredinSC, made me aware of that Enbridge Series 5 preferred mentioned above which is guaranteed to make me both money and happy.  For that I awarded him 50% of my kudos given.  (The other 50% went to Norbert for something I can't remember - I may have been drinking.)  So if you mention a security that I decide to get intimate with, I'll give you a kudos, also.

 

 


MPLX - MPLX LP - Seven year divey Aristrocrat since formation - 10.5% yield

SIX - Six Flags Entertainment - Amusement parks - 7.47% yield prior to today's tank, now at 9.4%

KNOP - KNOT Offshore Partners LP (oil shuttle tankers) -  10.51%

SUN - Sunoco LP (part of ET) - 10.1%

ATAX - America First Multifamily Inestor - 6.6% (tax free)

BXMT - Blackstone Mortgage Trust - 6.6% (close enough to 7% for government work)

HP - Helmerich & Payne (oil driller) - 6.23% (close enough for a 47 year divey aristrocrat!)

HEP - Holly Energy Partners - 11.93%

 

0 Kudos
RJD1300
Explorer ○○

Re: WANTED: 7%+ Yielders. Apply here.

To lazy to type out the names.

ABR  7.88%

APLE 7.67%

AARC 8.55%

CXW 11.31%

GEO 12.57%

JCAP 7.61%

PAGP 7.47%

TRTN-B 7.41%

VET 12.61%

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stormy
Follower ○○○

Re: WANTED: 7%+ Yielders. Apply here.

TOO-B

CHMI-A

ANH-C

DX-B

TWO-E

AHT-F

Maybe CHSCO or CHSCL but both are currently selling 2 bucks+ over the line so 7% might be gone.

Lastly you mentioned that you own TRGP. They have a monthly preferred NGLS-A.

0 Kudos
DryFly
Explorer ○

Re: WANTED: 7%+ Yielders. Apply here.

Hi Cliff,

Please consider this to be informational, not a recommendation.  That could change if the market swoons like last December.  

I like ARR-B which is a monthly payer, yielding 7.76%.  They called their A issue in the past year.  I don't like the company and would not buy the common.  I have a GTC order in for more shares around par.  I would not pay the current price but will buy more if there is a pull back.  They have been callable since 2/18.

ARR-B7.76%$25.30$25.360.060.24%$1.972/201827th7.88%NF     

 

Eaton Vance has several CEF's that sell covered calls.  I suspect that they are all the same.  I have ETY which yields 8.02%.  Their holdings look like a combo of FAANG and the S&P 500.   They are trading close to their 52 week high and like many CEF's they pay monthly.  MSFT is their largest holding, and it just keeps going up as you may have noticed.  This meteoric rise started in Feb 2014, after Ballmer left.  I hope those shares do not get called away soon.  It might lower the yield!

In the interest of full disclosure I have a few shares of MSFT left from my 3 years working there.  Like many others I wish I had more.

Miller/Howard has a High Income Equity Fund, ticker is HIE, yield is 12.23%.  There are not a lot of "high income equity funds" around to my limited knowledge for comparison.   Acamus would know the answer.

@acamus, Hi Al, can you help here?

HIE's  largest holding is Energy Transfer, you could ask Cliff about that- wait you are Cliff!  You should tell us.  I have had HIE for 18 months or so and am pleased so far.  I did think that Miller/Howard was a fixed income shop.  That shows you the positive impact Chardonnay can have. 

I own all of the above and cheerfully spend the income.  Good luck on your quest and remember just one thing:  the hunt for high yield is getting harder in a world with negative interest rates.

Cheers,

Dry Fly 

 

 

 

 

 

 

0 Kudos
myob
Explorer ○○○

Re: WANTED: 7%+ Yielders. Apply here.

Investing only for yield ends badly, but thats from my own experience.  You will need alot of luck to stay on course.

richardsok
Participant ○

Re: WANTED: 7%+ Yielders. Apply here.

Since you ask, here's few ideas from my recent scribbling.  I've added a couple of comments gleaned direct from my own notes.  Opinions expressed should be regarded with extreme suspicion.  This list indicates more "where my head is at" than anything else.  Definitely NOT a "buy" list!   I own some, but not everything mentioned here.   I tend to be a trader; only occasionally have longer term holds.  I trust tech signals more than my own opinions.   OK, here goes:

GLOP.  LNG ocean transport 14%.  Near support.

GSLD  8%

KNOP.  I've mentioned this stock many times.  It is a major "hold" for me.  Am happy with it.

PTY & PCI.  Two personal fave positions of Capecod legacy, but a tad late to the party, now.  For new money, either wait for the dip (that might not come for years) or enter via DC Averaging in small doses.

CEFL  18%.  But right now it's back near the one year high.  For new money, watch & wait for a dip.  About as diverse as you're ever going to get while slumming in HY alley.

MRRL 22%. Just dipped from its big quarterly dividend. (The next  two monthlies will be minis.)

MLPQ   Recovering nicely from its lows. 20%.  Am happy with it, but bears watching.

SZC  12% Holdings across the energy spectrum.  Also recovering from lows.  Don't own it b/c have large positions elsewhere in NRGX.

NRGX 9.2 %.    A newer Pimco pony trading energy, commodities and treasurys. I recently bought a rather large position.  So far so good.  Recovering from lows.

GEO & ARLP.  Two big yield stocks everyone loves to hate.  After a brief rise, are now trending south again.   Watch and wait for support.

CNXM 9% with 148% coverage

NCV.  Recovering from lows. 11%

RIV. Also recovering chart. 12.5%

DLNGpA 9.5%. Goes XD Feb 2

TNPpE

HGLB  Global allocation.  Recovering from lows. 13%, but definitely NOT earned from income. Whopping -22% discount. Don't own.

HRZN.   10%y. BDC with focus on health & life sciences via a relatively conservative port of secured loans. Dist was covered in 2019,  2020 should be strong also

GSBD. On little more  than my naive belief that Goldman Sachs probably knows a thing or two about business development.  8.5%.  Steady levelish chart.

NHF.  I've had good recent gains from this one as it's recovered from late 2019 lows. 13%.    Don't fully trust management.

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richardsok
Participant ○

Re: WANTED: 7%+ Yielders. Apply here.

Sorry.  Neglected to mention GMZ, one of the few MLP CEFs that outearned its recent distributions.  I like it but don't own it b/c of my speculative position in MLPQ.

0 Kudos
cliff
Explorer ○○

Re: WANTED: 7%+ Yielders. Apply here.


@myob wrote:

"Investing only for yield ends badly, but thats from my own experience.  You will need alot of luck to stay on course."


 

I'm sorry to hear of your bad experience.  As to needing luck to be a successful income investor or that investing for yield always ends badly, those are your opinions and you're entitled to them but you didn't really provide any facts or even anecdotal evidence to back that up.

As a reminder, this is the Income forum with a stated purpose of finding "ways to collect an income through dividend and income investing strategies" and this particular thread asked for suggestions for relatively higher-yielding individual securities, so you're a tad off topic.

But let's go with that.  For one piece of anecdotal evidence that things don't need to end badly for income investors, here's what KathieL, a long-time poster on the Income forum, had to say a short while ago . . . 

    "I'm another one whose retirement portfolio throws off 5-6% a year, which I transfer into my local checking account. I rarely sell any of my stocks - only when they have appreciated so much that they account for more than 5% of my portfolio. While I have been living on the income from my stocks for 5 years, the value of my portfolio continues to grow."

I've been around long enough to know that Kathie is not alone.  I'll provide my own anecdotal evidence and some facts.  First, I am not a lucky guy.  (Okay, I got lucky once and made it to second base when I was in high school, but that's so far in the past it doesn't count.)  

Exactly 15 years ago last week, I invested for the first time in the public markets.  Exactly 15 years ago.  I'd thought through what would likely work best for my particular situation and over the course of a few days threw some buckets of cash at specific relatively higher-yielding securities.  I like business and think I understand how companies work so I wasn't interested in the gloppy agglomerations that are funds.

Listed below are the 8 companies I invested in, exactly 15 years ago, along with the current yield and 15-year total return for each:

  • Enterprise Products (EPD): 11.8% total return and 6.2% current yield
  • Kinder Morgan (by way of Kinder Morgan Management, now KMI): 8.3% total return and 4.7% current yield
  • Magellan Midstream (MMP): 16.4% total return and 6.4% current yield
  • ONEOK (by way of Northern Border and OKS, now OKE): 17.7% total return and 4.9% current yield
  • Pembina Pipeline (PBA): 10.7% total return and 4.7% current yield
  • Realty Income (O): 13.2% and 3.7% current yield
  • Vector Group (VGR): 11.0% total return and 6.0% current yield
  • Berkshire-Hathaway (BRK-B): 9.4% total return and no damned yield.  Yet.

I still have all of the original shares/units purchased exactly 15 years ago except for Realty Income.  Some years ago I sold them off and bought back a couple years later at a much lower price.  I sold off a lot of VGR a while ago but still have my original shares which now have a cost basis of ZERO and that are paying $.80/share going forward.

By way of comparison, SPY has a total return of 8.9% for the 15-year period.

I don't really care about total return numbers for the bunch of stuff I hold.  It will be what it will be.  But if I did, I'm smart enough to know that they only relevant time frame is MY holding period and the only relevant investment vehicles are the ones I hold.  I'm also smart enough to know that we each have our own situation and our own objectives and measuring others' results by our objectives or strategy is a fool's game.  (Yeah, I know.  We see it a lot on the forums.  But it's still a fool's game.)

Of the 7 companies listed above that pay a distribution/dividend, 5 are in my top 10 holdings.  The blended current yield on those five is 6.0%.  I consider I'm achieving my objective.

As I said, with the exception of that long-ago, all-too-brief high school incident, I'm not lucky and I maintain that luck had nothing to do with this sort of investing primarily for income.

 

0 Kudos
cliff
Explorer ○○

Re: WANTED: 7%+ Yielders. Apply here.

 

@myob, I'm sure you picked up on the fact that I invested in 8 and only 8 securities exactly fifteen years ago and that I reported out the yields and 15-year total returns for all of those 8.  In other words, for better or worse, that's my complete universe of investments with my maximum 15-year investing period.  I have no other investments that were purchased in January, 2005.  I suppose it is possible that someone could misinterpret the situation but, short of a severe blow to her noggin from falling off a tricycle or a troll of inferior intellect intentionally distorting facts, I don't see how.  But I'm sure that none of the sophisticated income investors around here would make that mistake.

Of my total universe of 8 securities, there was one, Kinder Morgan, that had a slightly lower total return over the period than SPY.  Since 'beating the S&P's total return' isn't my objective, I don't really consider the investment a loser.  

The average total return of the total universe of 8 securities over the period was 12.3% vs. SPY's 8.9%.  I don't really care about that total return stuff but I know there are those who do.  It just frosts their hinnie that a bunch of investments with a yield 3X the market average yield can whomp the total return of the market over a long period of time.  It's like they get all red and apoplectic and start to drool and stomp their feet.  Some like to troll Income forums.  Of course they never contribute to the purpose of the Income forum which is to "find ways to collect an income through dividend and income investing strategies."

 

 

 

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MNfish
Explorer ○○

Re: WANTED: 7%+ Yielders. Apply here.

Here's my contribution via Wells Advisors - As of about a week ago all were rated Overweight

PRT  12.6%   Exploration/Production

BKCC   11.4%   BDC/RIC

TCPC   10.3%   BDC/RIC

MLPX   10.3%  MLP

TPVG   10.1%   BDC/RIC

NMFC   9.9%    BDC/RIC

KRP   9.3%    Exploration/Production.

HTGC   9.1%   BDC/RIC

ET   9.0%   MLP 

ARCC   8.6%   BDC/RIC

TRTX   8.5%   REIT - Mortgage

KREF   8.4%   REIT - Mortgage

IRM   8.1%   Data Center

CTL   7.9%   Telecom

STWD   7.7%   REIT - Mortgage

RTLR   7.7%  MLP

PAA   7.6%   MLP

CEQP   7.6%   MLP

RLJ   7.6%   REIT- Lodging

PAGP   7.4%   C Corp

DHC   7.4%  REIT - Healthcare

I was going to end with "Good Luck" until I read one of your last posts so you're on your own.

 

 

 

0 Kudos
JRinNY
Participant ○

Re: WANTED: 7%+ Yielders. Apply here.

@cliff how about ETP.D?  it's fixed to float with current yield at 7.5 or so.. very little above par -- but i trust you to do the due diligence.  btw, preferreds are getting hammered today due to a large new issue by wells fargo, so might be a decent day to go shopping.

0 Kudos
cliff
Explorer ○○

Re: WANTED: 7%+ Yielders. Apply here.

 

Thanks, JR.  I see you just got welcomed as a newer member of Morningstar.  What's it been?  5 years?  10 years?

 

Edit to add:  I'll definitely look at ETP-D.  It's a preferred from the old Energy Transfer Partners and you may have noticed I hold the surviving entity ET common.  So that makes the due diligence not a big deal.  Just a matter of price.

 

0 Kudos
JRinNY
Participant ○

Re: WANTED: 7%+ Yielders. Apply here.


@cliff wrote:

 

Thanks, JR.  I see you just got welcomed as a newer member of Morningstar.  What's it been?  5 years?  10 years?

 

Edit to add:  I'll definitely look at ETP-D.  It's a preferred from the old Energy Transfer Partners and you may have noticed I hold the surviving entity ET common.  So that makes the due diligence not a big deal.  Just a matter of price.

 


This thing was under par for most of its existence.. Now that energy becomes a consensus trade and the hunt for yield is real, it sits in the middle of these two trends.  it also has a nice spread to libor once it starts floating (if not called).

+++

yeah, i've only been around forever.  i think i joined the cef discussions in 2008 when i first started investing in them (at 20%+ discounts!)

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sexton911
Follower ○○

Re: WANTED: 7%+ Yielders. Apply here.

Great additions by all, I've enjoyed reviewing the list, and now I have a question related to this list...

I know the OP said no "funds" but are there any funds with these type of yields? I ask becasue a lot of the stocks seem to fluctuate share price quite a bit, again, I know the OP doesn't care about share price fluctuations, but I'm wondering if its possible to get these kind of div yeilds without so much captial fluctuation.

0 Kudos
ElLobo
Participant ○○○

Re: WANTED: 7%+ Yielders. Apply here.


@sexton911 wrote:

Great additions by all, I've enjoyed reviewing the list, and now I have a question related to this list...

I know the OP said no "funds" but are there any funds with these type of yields? I ask becasue a lot of the stocks seem to fluctuate share price quite a bit, again, I know the OP doesn't care about share price fluctuations, but I'm wondering if its possible to get these kind of div yeilds without so much captial fluctuation.


There are lots of Closed Ended Funds (CEFs) and Exchange Traded Notes (ETNs) that employ leverage to double the yield.  There is also an unleveraged ETF, the Alerian MLP (AMLP) that is an exchange traded fund that currently distributes 9.1%, as do several others I would guess.  A lot of Cliff's selections are MLPs.

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