Get Rich - Stay Rich - Investing for Monthly Income

Posts Tagged ‘best high yield stocks’

A 20% Dividend Yield from Small Caps with Monthly Dividends

Small-caps have been on a tear in Q2 clearly outperforming its larger counterparts. President Trump’s protectionist agenda and the resultant trade war fears started weighing on large-cap stocks that have considerable international exposure. And the domestically focused pint-sized stocks soared

In additions to trade tensions, there were some other factors that played their roles in pushing pint-sized stocks higher. The U.S. economy has been on steady ground. This gave a boost to small-cap equities. Apart from this, upbeat earnings sent small caps rallying in recent times.

And what could be better than a high dividend feature attached to this segment? The fund yields about 20.45% annually.

The UBS ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN (SMHD) is linked to the monthly compounded 2x leveraged performance of the Solactive US Small Cap High Dividend Index, less investor fees.

This is a relatively new ETN released in late 2018. It does carry risk being in the small cap area, being leveraged and with such a high yield. However, it can offer diversification to a high yield portfolio especially since it tracks small caps that usually don’t produce yield. It is trading 30% below its stock price high for the year.

Leveraged ETNs have interest-rate risk since they implicitly borrow at short-term interest rates to finance their leverage. A significant part of their high dividends results from the carry that is generated when the dividends paid by the securities in the indices upon which the ETNs are based exceed the implicit borrowing rate. While typically called dividends, the payments from ETNs are technically distributions of interest payments on the ETN note based on the dividends paid by the underlying securities that comprise the index, pursuant to the terms of the indenture.

As with all investments, you should be conservative with the total percent of your portfolio allocated to high risk. I like to have a few high yield stocks rounding out my monthly income plan. SMHD is in my personal portfolio as I believe the dividend is sustainable. Over time, the yield will compensate for the increased volatility and risk.

I am working on creating several new portfolios. The one most exciting is the monthly income stocks as a income resource to reach financial independence with passive (side hustle) income. I will hae more to come on this opportunity.

Join the Monthly Income Newsletter voted the best value for option income trading

Follow us on Twitter – @GetRichStayRich

Low Beta Dividend Stocks for an Uncertain Market

As the markets continue to show uncertainty and a lack of capitulation, investors are looking for a place to hunker down.  The best place at this time is in low beta stocks with dividend yields (defensive stocks) to support the share price.  I had identified 5 stocks that are up in price the last 4 weeks and have a bullish outlook for when the market rallies.  Here are 5 stocks to consider:

Tobacco operator Altria Group (MO) seems to do well in these types of markets.  It is up 4.9% over the last 4 weeks.  It has a low beta of 0.25 with a dividend yield of 4.91%.  MO has an equity summary score of 7.4 out of 10 for a Bullish outlook.

Low cost retailer Wal-Mart (WMT) shines when there is a slow economy.  WMT is up 14% in the last 4 weeks.  It has a beta of 0.33 and a dividend yield of 2.35%.  WMT has an equity summary score of 8.4 out of 10 for a Bullish outlook.

Telecom giant AT&T (T) is a steady as they go in this type of market.  AT&T is up 5.4% in the last 4 weeks.  It has a beta of 0.57 and a dividend yield of 5.03%.  AT&T has an equity summary score of 9.8 out of 10 for a VERY Bullish outlook.

Retailer Target Corp (TGT) has been performing great this year.  TGT is up 5.13% in the last 4 weeks.  It has a beta of 0.58 with a dividend yield of 2.06%. TGT just announced a 20% increase in its dividend.  TGT has an equity summary score of 9.2 out of 10 for a VERY Bullish outlook.

Pharmaceutical giant Bristol-Myers Squibb (BMY) is a solid dividend stock.  BMY is up 3.73% in the past month.  It has a beta of 0.41 with a dividend yield of 3.97%.  BMY has an equity summary score of 9.1 out of 10 for a VERY Bullish outlook.

Should You Buy This 12% Dividend Yield?

Niska Gas Storage Partners LLC (NKA) is an independent owner and operator of natural gas storage assets in North America.  Niska Partners owns or contract for approximately 204.5 billion cubic feet of total gas storage capacity.  As of March 31, 2011, the Company’s total working gas capacity to 204.5 billion cubic feet.  Niska Partners store natural gas for a range of customers, including financial institutions, marketers, pipelines, power generators, utilities and producers of natural gas.  The Company provides multi-year, multi-cycle storage services to its customers under long term firm reserved storage (LTF) contracts.  The volume-weighted average life of its LTF contracts at March 31, 2011, was 2.6 years.  The Company also provides services for customers under short term firm storage (STF) contracts. STF contracts typically have terms of less than one year.

NKA closed today at $12.07, up 4.23% on the day.  NKA is a dividend play with a current yield of 12% paid on a quarterly basis.  NKA missed their earnings estimated significantly last quarter and their stock was punished badly.  The earnings miss created concern that the dividend would be cut in the future.  However, this is less likely as analysts have been upgrading the stock this month.

On April 24 2012, Niska Gas Storage Partners LLC has been upgraded to Market Perform from Underperform at Wells Fargo.  Price target was raised to $9-$12 from $6-$9.


On April 14 2012, Columbine Capital Services, Inc. upgraded NISKA GAS STORAGE PARTNERS LLC from NEUTRAL to FAVORABLE.

On April 5 2012, Audit Integrity, Inc initiated coverage for NISKA GAS STORAGE PARTNERS LLC with a 3 recommendation.

Bottom line: The analysts upgrades may be signalling stability in the stock.  NKA doesn’t report earnings until 6/5 so keep this stock on your watch list.  If there is no dividend cut and earnings improve, this stock will continue to increase in price.  This is an aggressive investment so it is more speculative today until it plays out in the next few months.

Get FREE Stock

Get FREE Stock - No Trade Commissions

Subscribe for FREE Trades

Subscribe for FREE Trades

* indicates required
/ ( mm / dd )