Welcome to the 6th year of Dividend Income Investor.
Before buying any investment, go to Core Portfolio for a listing of current positions.
April 30, 2018
NOTE: The positions we are talking about below have jumped up this morning. We suggest you WAIT for the prices to settle down, before buying.
MAIN is a Business Development Company that took a little tumble from a high of $40 down to $36, and the current price is $38.00. We have been watching MAIN for years but have never owned it. The momentum is turning up and we are buying a small position.
It pays just over 6%. A nice advantage to MAIN is it’s MONTHLY dividend payment. In addition, they are going to pay a supplemental dividend in June which is a very nice benefit. Go to the link below for the full article.
Main Street has all the qualities I look for in a high yield income opportunity. A solid management team, strong growth prospects, long-term history of returning capital to shareholders, proven track record of increasing NAV and DNII, and a well-diversified business strategy involving debt and equity investment in LMM companies that offers the opportunity for capital appreciation as well as income. Furthermore, the talented and conservative management team allows me to sleep very well at night. Those are my thoughts on the matter I look forward to reading yours!
OFSSL Filled on Friday. Our Limit Order for $25.07 was filled: just barely before the market closed on Friday. We actually did not expect this fill as the sellers seemed to be stubborn in holding a higher price. OFSSL closed at $24.73 so if we had a crystal ball, we would have placed our order much lower. This is definitely a buy at $24.73.
CenturyLink CTL is a turnaround story and speculative play that pays over 11%. The chart has been looking terrible as it has been tanking since 2014!!!!. But there is growing consensus that this company is turning around. It hit a bottom around $14 is now at $18.90.
If you are willing to take the risk, start with a SMALL POSITION.
There’s also a distinct likelihood that all the potential bad news has been more than priced into the stock. That sets the stage for some more positive headlines that have been missing for too long. The team-up of Level 3 and CenturyLink should give the organization plenty of things to tout as the year wears on. The shift away from consumers and towards corporate customers has been an understated growth opportunity. Investors may finally be starting to figure it out.
Talking about the so -called Wall Street “expert” forecasters:
It is actually worse than even these facts might suggest. Salil Mehta is an independent statistician and blogger who was previously the director of research and analytics for the United States Treasury’s Troubled Asset Relief Program and for the federal Pension Benefit Guaranty Corporation. Mr. Mehta says, “It’s not easy to be as bad as they are. They are much worse than random chance alone would predict.”