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Highlighted
Participant ○○○

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

 

FOLLOW-UP:

Thanks to all who sent along some ideas.  There were nearly 70 mentioned in all (with a few duplications) and it took a while to even take a quick look at all of them.  And I was delayed by my pro football binge last weekend and the semi-pro game on Monday night.  Here's where I'm at . . . . 

  • Although there were some fine possibilities mentioned in the energy or energy-related sector, I'm sorta full up in that area.  And just DRIPing for now is a substantial annual investment.  The exceptions - two of them - are preferreds where I already hold the common of the company.
  • I stay away from the hospitality industry, including hospitality for convicted felons, so nothing there for me.
  • I also generally stay away from business development companies and shippers and tankers.  Nothing against them, though, I've owned them in the past.
  • There were a bunch of funds mentioned and I'm sure there are some good ones in the bunch, but funds aren't for me.  The old dog, new trick thing.
  • Two were mentioned that I already own - Iron Mountain (IRM) and CHSCL.
  • For various reasons I found myself liking a group of securities related to real estate finance.

So, either on a watch list or already purchased this week, here are the ones I came down to:

  • Targa Resources preferred (NGLS-A)
  • Energy Transfer preferred (ETP-D)
  • Blackstone Mortgage (BXMT)
  • Jernigan Capital (JCAP)
  • Dynex Capital preferred (DX-B)
  • Cherry Hill Mortgage preferred (CHMI-A)
  • Armour Residential preferred (ARR-B)
  • TPG RE Finance (TRTX)
  • KKR RE Finance Trust (KREF)

CORRECTION:

In a previous reply to a poster on this thread, I listed some outfits I've owned for 15 years.  I double-checked and found I'd made a mistake.  I've only held Berkshire Hathaway (BRK-B) for 14 years, 10 months.  I'm mortified to have posted something that was not absolutely true.  (Okay, I'm not really mortified.  Who really cares, after all.)

As a side note, BRK-B is the only one of the bunch I listed where my personal total return is exactly the same as that of any reliable return calculator that utilizes dividend reinvestment.  Over 14 years and 10 months, any and all monies distributed to me by the company were promptly reinvested.

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Highlighted
Explorer ○○○

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

Cliff, you will probably want to take JCAP of your list.  I don't remember the details but recently in order to accomplish some goal management has decided to reduce the dividend.  It will be <5% soon.

Highlighted
Participant ○○○

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


@RJD1300 wrote:

Cliff, you will probably want to take JCAP of your list.  I don't remember the details but recently in order to accomplish some goal management has decided to reduce the dividend.  It will be <5% soon.

 

My rule is to award kudos when somebody makes me money.  I just slapped one on ya.

Thanks!


 

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Highlighted
Explorer ○○○

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


@cliff wrote:

@RJD1300 wrote:

Cliff, you will probably want to take JCAP of your list.  I don't remember the details but recently in order to accomplish some goal management has decided to reduce the dividend.  It will be <5% soon.

 

My rule is to award kudos when somebody makes me money.  I just slapped one on ya.

Thanks!


 


Thanks, but you probably got JCAP from my list since I own and posted it.  At the time I forgot they were using some of the divy for the company so maybe you want to take back the kudos LOL.  BTW the share price has gone up since they made their announcement so most investors like the move.  I have been thinking of taking my profits and investing elsewhere but haven't decided yet.

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Highlighted
Participant ○

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

Hey, Cliff, I bought a stock yesterday that yields over 7%.  It is BPY, Brookfield Property Partners.  It pays 7.3%.

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Highlighted
Participant ○○○

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

Why are you not considering Closed End Funds (CEFs)?

My combination of CEF and REIT is doing great and provides great income stream. 

The CEF are the base, and provide the monthly income, then the REIT add via their quarterly dividends and thus the monthly incomes fluctuate a bit but are boosted by the REIT income. 

The PIMCO funds PDI PCI PKO and PTY are real stellar performers. 

So I'm getting over 7.5% yield on this 80% portion of my portfolio. I have some growth and tech stocks that obviously bring down the overall yield of my portfolio, so I took those out of this table. 

TICKERYIELDPORT VALUE
PDI7.92%13.15%
UTG5.50%12.03%
PCI8.22%8.44%
PKO8.06%6.22%
UTF7.08%5.82%
ABR7.91%4.97%
PTY7.96%4.86%
CORR6.66%3.82%
BXMT6.41%3.30%
AB7.43%3.14%
STWD7.41%2.83%
FOF7.57%2.60%
HPI6.34%2.55%
JPS7.01%1.97%
NLY10.17%1.80%
XFLT10.61%1.60%
LDP6.81%1.24%
TOTAL7.59%80.33%

 

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Highlighted
Follower ○○○

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

Nice thread. A few of my current 7% yielders that might work -

BANX

SUNS

COWNZ

JMPNL

APLE

SVC

RIGYG

CORR-A

XAN-C

GBLIZ

STAR-I

What I really enjoyed was using  the December 2018 market drop to buy very reliable dividend payers, at some awesome new lows, that all of a sudden qualified for the 7% club like NYCB, T  and PM (almost for PM at 6.7%). As usual I had almost no cash so I moved a chunk of Home Equity over to take advantage of the big drop in solid stocks. The market corrected quickly for some nice gains. I still own a bunch of NYCB purchased at 9.47.

Best of luck

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Highlighted
Follower ○○○

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

Stock prices down recently, but RDS.B (Shell) yields 7% and OXY (occidental) yields 7.4%, both paying QDI. An argument can be made that these stocks can recover in price and produce a nice Cap gain. I personally prefer them to most energy MLPs.

 

Highlighted
Participant ○

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

Hoegh LNG Partners LP (HMLP):  I believe the dividend rate is now roughly 13.5%.   Probably my favorite high dividend energy pick right now. 

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Highlighted
Follower ○○○

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

You had me at "stock prices down recently". My LTS-A position was basically called after the merger so I replaced the 2% of my 50 holding portfolio with RDS.B after looking hard at both it and OXY.

I am not a fan of energy stocks but both are appealing to me. At the moment I see a lot to like. Thanks for the heads up!

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Highlighted
Frequent Contributor

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


@astrokng wrote:

Why are you not considering Closed End Funds (CEFs)?

My combination of CEF and REIT is doing great and provides great income stream. 

The CEF are the base, and provide the monthly income, then the REIT add via their quarterly dividends and thus the monthly incomes fluctuate a bit but are boosted by the REIT income. 

The PIMCO funds PDI PCI PKO and PTY are real stellar performers. 

So I'm getting over 7.5% yield on this 80% portion of my portfolio. I have some growth and tech stocks that obviously bring down the overall yield of my portfolio, so I took those out of this table. 

TICKERYIELDPORT VALUE
PDI7.92%13.15%
UTG5.50%12.03%
PCI8.22%8.44%
PKO8.06%6.22%
UTF7.08%5.82%
ABR7.91%4.97%
PTY7.96%4.86%
CORR6.66%3.82%
BXMT6.41%3.30%
AB7.43%3.14%
STWD7.41%2.83%
FOF7.57%2.60%
HPI6.34%2.55%
JPS7.01%1.97%
NLY10.17%1.80%
XFLT10.61%1.60%
LDP6.81%1.24%
TOTAL7.59%80.33%

 


Pimco FI CEFs are the best option for high yield.  

You can find more ideas at A Strategy For Sustainable, Inflation-Adjusted 7% Income

 

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Highlighted
Frequent Contributor

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


@cliff wrote:

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.

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.


 

 

 Those fortunate to have waited a short month or two can now say that you paid more than they did. Since you listed your high yielders we have been dealing with collapsing oil prices and an economy brought to its knees by the virus. Both of these events have put your list on sale. From the time you published your list/recommendations Targa yield has gone from 9.2% to 76.96%.

 

              Sale prices from Jan 10th 2020

  • Targa Resources (TRGP)  9.2% yield............................. ( -81.06% )
  • Macquarie Infrastructure  (MIC) 9.1% yield..................(-54.88% )
  • Energy Transfer (ET)  9.1% yield....................................(-59.49% )
  • Enbridge Series 5 (EBGEF)  6.9% yield     
  • Iron Mountain (IRM)  8.0% yield...................................( -10.49% )
  • Tanger Outlet (SKT)  8.7% yield.....................................( -53.36% )
  • Nustar Logistics (NSS)  8.6% yield................................( -45.59% )
  • American Finance Trust Series A (AFINP) 7.5% yield...( -42.23% )
  • AGNC Investment Corp (AGNCO)  7.2% yield...............( -36.22% )

 

 The energy sector has had a rough time and while some of these companies will survive, there will be pressure to lower distributions which I expect will hold down prices for some time to come. Energy heavy portfolios are fraught with issues, especially for concentrated portfolios. Hopefully, we'll find a vaccine and therapeutic so people can get out and start spending again, until then oil and related investments will remain under pressure.

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