July 2, 2018. If you are nerdy, like we are, and are watching the ‘yield curve’ (do you know what this is, do you care?), you will find the video at the link below to be very educational. Is the yield curve telling us a recession is coming?
The vid is long and boring, but if you are a serious investor, you need to take the time to understand what is going on.
Now in the 6th year of Dividend Income Investor.
Before buying any investment, go to Core Portfolio for a listing of current positions.
There are no new buy or sell signals for the Core Portfolio. (BUT…If you do NOT own RILYZ this would be a good entry point.) You cannot “force” action in the markets: you just have to maintain extreme patience and wait for the bargains to come to you…..we have received a very large number of dividend payments over the last few days which is really what this game is all about. We are not interested in trading stocks and prefer to buy income producing investments and wait for the divi payments to come in.
We have been trying to get HCAPZ over the last two weeks but we just could not get a break.
Our cash position is very low and we remain fully invested.
We saw some positive comments on two of our Core Portfolio holdings at The Motley Fool website. The positions are a HOLD, we would not be adding at this point.
A hidden healthcare gem
Keith Speights (Medical Properties Trust): Tucked away in Birmingham, Alabama, Medical Properties Trust offers a dividend that’s more attractive than many more well-known stocks. The company’s dividend currently yields more than 7%.
Medical Properties Trust is a real estate investment trust (REIT) that leases properties primarily to healthcare providers including general acute care hospitals, inpatient physical rehabilitation hospitals, long-term acute care hospitals, surgery centers, and specialty hospitals. As of March 31, 2018, MPT owned 274 properties, most of which are in the U.S. but also with a significant number in Germany. The company also has some properties in other countries, including the United Kingdom, Italy, and Spain.
MPT’s top three customers generate roughly 65% of the company’s total revenue. That’s not a bad thing, considering that the two of them — Steward Health Care System and Prime Healthcare Services — rank as the No. 4 and No. 5, respectively, biggest for-profit hospital chains in the country.
The company currently uses only 68% of funds from operations (FFO) to fund distributions to shareholders. With demand for healthcare services growing as baby boomers age, MPT’s customers should be in solid shape over the long run. That means the company should be able to count on dependable revenue — and investors should be able to count on dependable dividends.
Living downstream from the world’s best oil play
Maxx Chatsko (Plains All American Pipeline): The Permian Basin in West Texas has become one of the most exciting sources of oil production growth in the world. There’s just one problem: crude oil and raw natural gas are coming out of the ground so quickly it has overwhelmed the region’s pipeline, processing, and storage infrastructure. That creates a sweet opportunity for pipeline operators such as Plains All American Pipeline.
The company is among those leading the charge to expand the region’s pipeline networks, both within the region and to refineries hundreds of miles away on the Gulf Coast. Drillers don’t care so long as the bottleneck gets removed.
Plains All American Pipeline — which boasts a 4.9% yield — is pouring $1.6 billion into several major pipelines. This year and next the company will add 2.3 million barrels per day (BPD) of new pipeline capacity including 600,000 BPD in the Delaware Basin (where 60% of Permian production growth is expected), an additional 800,000 BPD inside the Permian at large, and another 850,000 BPD in long-haul capacity. There’s more coming in 2020 and beyond.
The expansion will provide Plains All American Pipeline with ample fee-based growth — enough to give management the confidence it can grow earnings and cash flow by double digits in each of the next two years at least. That will help the pipeline operator to edge closer to its long-term deleveraging goals while leaving a healthy amount of capital for future growth and dividend increases. If this high-yield stock isn’t on your investing radar, then you might want to give it a closer look.
Back in early May we mentioned “mrnumber” and new app which promised to block spam calls on your iPhone. We were skeptical.
But, believe it or not, it works. We have had one, yes, ONE, spam call since we installed the app almost two months ago. And best of all it’s free. If you do not use this app, get it today.