High-Yield Investing

Trade of the Week: High Yield Bonds

Trade of the Week: High Yield Bonds

A massive options trade occurred last week in iBoxx $ High Yield Corporate Bond ETF (HYG).  HYG is a massively popular high yield bond fund that also has a very active options chain.  A put spread was recently sold on HYG with over 150,000 contracts per leg.  This trade is likely meant to boost “yield” […]

How to Find the Best Preferred Stocks

How to Find the Best Preferred Stocks

Dear Investor, Because of their high level of dividend safety, I think individual preferred stocks should account for a portion of any investor’s high yield holdings. I regularly look at different preferred stocks, looking for candidates that I can recommend to The Dividend Hunter members. I also monitor the current list of preferreds, making sure […]

Why You Can’t Trust Share Buybacks

Why You Can’t Trust Share Buybacks

Dear Investor, Share buybacks have become the rage for companies with large amounts of excess profits or free cash flow. Wall Street analysts love share buybacks as a way to “return capital to shareholders,” and many boards of directors give a lot of weight to what the analysts who follow their companies say. My opinion […]

Three High-Yield Stocks Paying Extra Dividends

Three High-Yield Stocks Paying Extra Dividends

The pandemic-triggered shutdown of a large portion of the global economy forced many companies to cut dividend payments, or at least stop growing their dividend rates, for most of the last year and a half. Although we now seem to be in a reopening phase, I sense a reluctance from Boards of Directors to bring […]

Are You A Believer?

Are You A Believer?

It’s amazing how many childhood lessons apply in today’s complicated world. In grade school, the older boys told us only babies believe in Santa Claus. I told them my mother said, “As long as you believe, there is a Santa Claus.” They made fun of me. I sought the counsel of our neighbor, Sherwin. He […]

Crane picking up a car in a junkyard

Sell These Five High-Yield Closed End Funds

My Dividend Hunter service provides a list of high-yield investments to build an income-focused portfolio. Many closed-end funds pay very high yields, so the conflux of my focus on high yield and investors discovering closed-end funds (CEFs) leads to many questions from my subscribers about specific funds. Let me share what I think about the […]

How Do I Invest In Dividend-Paying Stocks?

How Do I Invest In Dividend-Paying Stocks?

You invest in dividend-paying stocks by researching stocks by first understanding how they work and the terminology that accompanies them. Today I want to offer some help for anyone who is feeling confused by all the information available on financial news platforms. I see many people with little investment experience jumping into the stock markets […]