Saturday, July 29, 2023
"3 High-Yield Dividend Investments to Protect Against Inflation", 29JULY
Whether you’re in retirement or not, generating consistent income can help you navigate the toughest market cycles…
That's especially true with 7.7% inflation here in the United States.
And that's only the official number…
I suspect the real rate of inflation is much higher than that given the fact that the government manipulates the factors that go into the “official” number.
So, what's the real number then?
Well… That all depends on the stuff YOU buy.
Are houses going up 7.7% annually? How about cars? College tuition?
I don't think so…
Here's what you can do about it though… You can buy high yielding dividend investments that pay at least 10% and give you potential price appreciation in the underlying stock.
Each of these three companies pays over 10% annually and can help you weather the ups and downs of the unpredictable market we find ourselves in today.
One even pays a massive 18.4% dividend…
No. 3: Starwood Property Trust, Inc. (NYSE: STWD)
Dividend Yield: 10.3%
Starwood Property Trust Inc, also an American real estate investment trust (REIT) is required to distribute at least 90% of its taxable income as dividends to shareholders. But instead of managing residential mortgages, Starwood originates, acquires, and manages commercial mortgage loans and commercial mortgage-backed securities in the United States and Europe.
The company operates a commercial lending segment, infrastructure lending segment, property segment, and investing and servicing segment. The former acquires and finances mortgages with primary lien positions.
The collateral for these mortgages is mainly office and hospitality properties in Western and Northeastern America. Starwood's investing and servicing unit primarily generates revenue from the acquisition and sale of commercial mortgage-backed securities.
And right now, the business is doing so well that STWD can afford to pay a solid 10.3% dividend for the foreseeable future.
Starwood has also never missed a dividend payment since going public in 2009. In fact, the company has increased its dividend 4,700% – from $0.01 in 2009 to $0.48 today.
No. 2: Solar Capital Ltd. (NASDAQ: SLRC)
Dividend Yield: 11.6%
Solar Capital Ltd. is an investment company that primarily finances senior secured loans of private mid-cap companies to generate current income. Since senior secured loans are the first to be paid out in case of bankruptcy, it’s safer than all other forms of debt.
Solar Cap’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The company generates revenue primarily in the form of interest; dividend income and others. And that income is then distributed straight into shareholders’ pockets quarterly.
The business hasn’t missed a dividend payment since it went public back in 2010… And I don’t foresee it missing one in the foreseeable future, no matter which way the market turns next.
No. 1: Cherry Hill Mortgage Investment Corp. (NYSE: CHMI)
Dividend Yield: 18.4%
Cherry Hill Mortgage Investment Corp manages real estate in the United States. The company invests in residential mortgage assets with the objective of generating high current yields and risk-adjusted total returns for its stockholders over the long-term.
And since it operates as a REIT, it’s required to pay a minimum of 90% of all taxable income in the form of dividends to shareholders each year.
Cherry Hill generates most of its revenue from residential mortgage-backed securities (RMBS), in the form of Interest income earned for servicing mortgage loans.
Since going public in 2013, CHMI has also never missed a dividend payment. And right now, you can lock in shares for a massive 18.4% yield.
"GOLD IS DEAD...JUST LIKE PAUL MCCARTNEY" BY ERIC FRY, 29 JULY
Gold is Dead… Just Like Paul McCartney
Long-time fans of the Beatles might recall that bizarre episode in 1969 when a global conspiracy theory emerged that Paul McCartney had died in a car accident.
Conveniently for the “theorists,” Paul had decided to step away from the spotlight during the fall of 1969 to spend some time with his wife, Linda, and their newborn daughter, Mary.
Into this void poured an endless flood of mystical insights and pure nuttiness. The Abbey Road album cover provided some of the most memorable “proofs” of Paul’s untimely demise. One theory held that the cover photo of the four Beatles crossing Abbey Road was obviously a funeral procession, metaphorically speaking, in which Paul was obviously the metaphorically deceased.
Elsewhere in the same photo, the license plate of a nearby VW Bug provided corroborating evidence that Paul was dead. The auto’s plate read: LMW 28IF, which clearly stood for “Linda McCartney Weeps” because Paul would be “28, if” he was still alive.
Mercifully, Paul eventually emerged from seclusion to prove the conspiracists wrong… and he did so just as the Beatles were breaking up and going their separate ways. As a result, a kind of creative rebirth would soon begin for McCartney.
After his 1969 “death,” he would proceed to record another nine No. 1 hits and 14 other “Top 10” hits, including memorable ones like “Maybe I’m Amazed” and “Live and Let Die.”
For perspective, the Rolling Stones have scored only eight No. 1 hits during their five decades together. In other words, the 1969 vintage Paul McCartney had a lot of life left in him… and so does gold today.
Is Gold “Due” for a Rally?
Admittedly, the yellow metal is barely registering a pulse at the moment. Most of the wax figures inside Madame Tussauds Museum seem more vibrant and lifelike.
But that’s simply how gold behaves from time to time. It “does nothing” for such extended periods of time that investors begin to doubt it could fog a mirror.
Gradually, they turn their back on the comatose metal and leave it for dead. But that’s usually about the time it comes to life. In this way, gold is probably less like Paul McCartney than like a cicada — the insect that lies underground for years at a time before emerging and swarming around for a few weeks.
After gold’s decade-long dormancy from 1991 to 2001, for example, it suddenly sprung to life and soared 500% over the ensuing decade.
More recently, the gold price drifted 40% lower during the seven-year span from 2011 to 2018. But then it revived once again and rallied as much as 70% from its 2018 low.
That rally was probably the first phase of what will become a much bigger move. Now that the gold price has spent more than a year going nowhere, it has gained plenty of rest for its next major move higher.
Importantly, the last year of non-action has also fostered so much negative sentiment toward gold that, from a contrarian perspective, it is “due” for a rally. The gold market, just like the stock market, tends to lurch higher at the moments when most investors dismiss that possibility.
The present moment would certainly qualify. As the chart below shows, most folks want little to do with gold at the moment. On a net basis, investors have withdrawn more than $15 billion from the SPDR Gold Shares ETF (GLD) during the last 12 months. That’s the most rapid and sizeable retreat from this gold ETF since 2013.
To summarize today’s approximate investor attitudes, they like stocks, adore cryptos, and feel sorry for gold.
Such are the moments that often ignite a gold rally… especially if the yellow metal has a good reason to make a move, like if inflation is on the rise and/or government deficits are soaring.
Both of these trends are well-established today… and they are both intensifying.
After topping $4 trillion last March, the 12-month federal deficit has declined to “just” $2.8 trillion — a number that is equal to 12.5% of U.S. GDP.
That’s a big number.
Meanwhile, the six-month average U.S. inflation rate is hitting its highest levels since “Dances With Wolves” won an Academy Award 30 years ago.
Historically, great, big governments deficits, coupled with great, big inflation readings, trigger great, big gold rallies. Perhaps this time is different. But there’s a reason why many seasoned investors say that “this time is different” is the most expensive phrase in finance.
Because it is.
Gold may not rally immediately, but I suggest pausing awhile longer before administering its last rites.
I realize that gold seems utterly irrelevant in a world dominated by Bitcoin and other cryptocurrency marvels. But I suspect the “barbarous relic” still possesses some relevance in the modern era… at least as a hedge against obvious risks like inflation, or against less obvious risks like a sudden stock market sell-off or a cryptocurrency flameout.
Every generation of investors contains a bunch of folks who pooh-pooh gold as a useless bauble. But history has not been kind to gold-haters; the naysayers usually encounter moments of regret.
Gold might seem as irrelevant today as a complete set of Encyclopedia Britannica. But don’t be surprised if it returns from irrelevance to score a few more “Top 10” portfolio hits in the future — perhaps something catchy like, “All You Need is Gold” or “While My Portfolio Gently Weeps.”
Bottom line: The hedge almost no one seems to want may still be one of the best ones to own during the uncertain times ahead.
By
Eric Fry
"RV INTEL" BY BRUCE, 29 JULY
Bruce
[via WiserNow]…we heard from a very, very high military source that is well connected to this process. He is telling us that we could get notified between now let’s call it…tomorrow and Monday, the 31st…
DINARLAND UPDATE, 29 JULY
MarkZ
[via PDK]
“The Text of the Baghdad-Kurdistan agreement on the implementation of the budget.”
This is a massive move forward and it looks like they have worked through the last of the HCL hold up stuff. Money and agreements- looks like things are moving.
They told us they are at least going 1 to 1 as a bare minimum. I still expect considerably higher.
The CBI is talking about the American dollar… Look, stop using it. If you stop using it you don’t have to worry about the exchange rate of the American dollar verse the Iraqi dinar...The value of the American dollar will drop like a meteor in the ocean. If you stop using the American dollars…the value of the dollar will go down and the value of the Iraqi dinar will go up.
Question:
“Are they going to take the three zeros off of the 25k note? Are they going to take the three zeros off the exchange rate ?“
When you delete the three zeros from the official exchange rate of the Iraqi dinar with the CBI you automatically remove 3 zero currency notes from the street… .00085791 something like that this morning, if you take that decimal point and move it to the right three time you remove the three zeros. You’ve got about $0.86 cents, round off to a dollar…
That’s the whole project…They don’t take a pair of scissors and cut the three zeros from the 25k note...Electronically they remove the three zeros from the exchange rate which in turn stops the citizens from using the three zeros notes because the exchange rate does not work with 3 zero notes. What does this new exchange rate work with? The new lower denoms. The 1, 5, 10, 20…100…
Mountain Goat
The Governor of the Central Bank, Ali Al-Alaq, revealed on Wednesday, measures that will contribute to the stability of the exchange rate, and…he also pointed out that the new proposed 20k note has been dismissed from printing …we do not wish to expand the current categories, because the project to delete zeros still exists… All we can do is sit tight and wait. It is coming soon and this is yet another good sign that the new governor Ali Alaq is on the reform side and wants what we want.
…There’s a rate that’s being involved…to all these allocations that they’ll need for this ’23, ’24, ’25 budget, that hasn’t been exposed yet…We believe they are not going to go into an international market at 1310. If they could have done it already they would have done so…
Article:
“The Central Bank of: Issuing a new denomination for the national currency is not on our agenda at the moment”
…The Deletion of the zeros project still exists…
JUDY NOTE, 29 JULY
Global Currency Revaluation:
Judy Note: It appears that the Quantum Financial System will be fully integrated and running on the new secure Star Link Satellite System by Tues. 1 Aug. – the same date President Trump was expected to return to his duly elected office as President of the US.
Those in Tier4b (Us, the Internet Group) could expect to be notified to set redemption/ exchange appointments by Mon. 31 Aug, with appointments likely beginning on Tues. 1 Aug.
Prepare for activation of the Emergency Broadcast System in a version of Martial Law, which could shut down everything for up to a ten day period while documentaries are shown in eight hour segments 24/7. The purpose would be to educate the public about our new court and government systems including our God-given Freedoms as outlined in the original and inspired US Constitution.
- Thurs. 27 July Bruce: Tier4b (Us, the Internet Group) will be notified to set our appointments sometime between Fri. 28 July and Mon. 31 July. NESARA should be announced to the US general public on Sun. 30 July, or Mon. 31 July. Restitution allowances will come out the first week of Aug. Those 60 and older can take it as a lump sum. Those younger will be paid out over ten years. Increases in SS up to $5,000 will supposedly start in Aug. The real president will be back in office by Tues. 1 Aug.
- Wolverine: “Watch between now and Monday.”
- The General Public Tier 5 could exchange currency at the new rates at a bank beginning on Thurs. 3 Aug. …Bruce
- We are in a critical time frame window of the Great Wealth Transfer until Wed. 9 Aug. …Bo Polny
- “The RV will happen after a Global Financial crisis.” …Charlie Ward
- The New Financial System: GESARA, QFS, GCR/RV, ISO 20022, BASEL III, Protocol QFS 20, and DINAR – It’s All Connected!
- https://amg-news.com/the-new-financial-system-gesara-qfs-gcr-rv-iso-20022-basel-iii-protocol-qfs-20-and-dinar-its-all-connected/
- Iraqi Parliament Sets Date: Parliamentary finance sets the date for the entry into force of the budget provisions – Iraqi Dinar News, Information and Facts – IRAQI DINAR (iraqidinarchat.net) “In the next couple of days.”
- Iraqi Dinar News Updates: Today’s Rise on Redemption Center Screens: https://youtu.be/GvlSjTV6EGA
- President Putin has forgiven $23 billion in African debt.
Friday, July 28, 2023
"7 Best Cheap Dividend Stocks to Buy Under $10" BY MONEY.USNEWS, 28 JULY
A quarterly dividend payment from a high-quality stock may be as close to a sure thing as an investor can find on Wall Street. Even during periods of broad market weakness, the lower a stock's price falls, the higher its dividend yield rises.
Unfortunately, companies often cut their dividend payments as the first line of defense when times get tough, and many dividend stocks priced under $10 may not be safe investments. Investors buying cheap dividend stocks should always take a close look at the company's business fundamentals.
Here are seven of the best dividend stocks selling for less than $10, according to Morningstar:
Lloyds Banking Group PLC (LYG)
Lloyds Banking Group is a diversified bank and insurance provider based in the U.K. Most bank stocks have taken a big hit in recent months following several U.S. regional bank failures and an emergency takeover of Credit Suisse Group AG (CS) by UBS Group AG (UBS). Lloyds is no exception. The stock is down 8.7% in the past three months through June 1. Analyst Niklas Kammer says Lloyds has a complex net-interest-income outlook, but its 19.1% return on tangible equity in the first quarter was impressive. Morningstar has a "buy" rating and $3.80 fair value estimate for LYG stock, which closed at $2.21 on June 1.
Banco Bradesco SA (BBD)
Banco Bradesco is one of Brazil's largest banks. Analyst Michael Miller says Bradesco's first-quarter financial performance was a "significant improvement" from its fourth-quarter performance. Recurring net income in the first quarter was down 37.3% from a year ago but up 168% on a quarterly basis. Miller says Bradesco is battling difficult economic conditions in Brazil, but its stock is undervalued. He says the Brazilian central bank appears to be making progress in bringing down high inflation, which should help support Bradesco's deteriorating credit quality. Morningstar has a "buy" rating and $3.70 fair value estimate for BBD stock, which closed at $3.17 on June 1.
Barclays PLC (BCS)
Barclays is one of the largest U.K. financial services groups. Kammer says Barclays' 15% return on tangible equity in the first quarter was impressive, and the company's consumer, cards and payments businesses were particularly strong. In addition, Kammer says the company's corporate and investment banking businesses put up impressive numbers, and the bank's guidance for above 3.2% net interest margins is achievable. He says Barclays has a strong U.K. retail banking franchise and has a leading market share in credit cards. Morningstar has a "buy" rating and $10.10 fair value estimate for BCS stock, which closed at $7.65 on June 1.
Sirius XM Holdings Inc. (SIRI)
Sirius XM Holdings is a leading provider of satellite and internet radio services, largely to the auto industry. Analyst Neil Macker says Pandora advertising revenue trends have been solid, and the platform is still benefiting from podcasting tailwinds. Macker says 37% of new-car buyers who receive a three- to 12-month free trial of SiriusXM convert their trial to a paid subscription, which accounts for the majority of its new subscribers. He projects the satellite service will continue to slowly expand over the next five years. Morningstar has a "buy" rating and $7.50 fair value estimate for SIRI stock, which closed at $3.70 on June 1.
Nomura Holdings Inc. (NMR)
Nomura is Japan's largest investment bank and brokerage. Analyst Michael Makdad says Nomura has a valuable brand in Japanese asset management. Makdad estimates the bank's domestic retail and asset management businesses have historically generated returns on equity well above 10%. He says Nomura holds roughly 30% of all client assets held in brokerage accounts in Japan, and the stock is more attractively valued than leading competitor Daiwa Securities. However, Makdad says Nomura needs to invest in digital products and services to secure younger customers. Morningstar has a "buy" rating and $4.50 fair value estimate for NMR stock, which closed at $3.56 on June 1.
Aegon NV (AEG)
Aegon is a Dutch insurance company that offers insurance, savings, pension and investment products and services around the world. The U.S. regional banking crisis has weighed on Aegon shares in 2023. However, analyst Henry Heathfield says the company reported impressive growth numbers in the first quarter. Sales in the U.S. workplace business roughly doubled year over year to $2.55 billion from $1.27 billion. Heathfield says Aegon is focused on improving its balance sheet, increasing its strategic focus and improving its operational efficiency. Morningstar has a "buy" rating and $6.10 fair value estimate for AEG stock, which closed at $4.49 on June 1.
Gap Inc. (GPS)
Gap is a casual apparel and accessories retailer and owner of Old Navy, Gap, Banana Republic and other popular brands. Gap and other mall retailers have faced tremendous competitive pressures from Amazon.com Inc. (AMZN) and other online sellers in recent years, and analyst David Swartz says Gap has reported inconsistent results. However, Swartz says Gap has decent liquidity and the Old Navy brand is a solid business. He says the company's goal of reaching $10 billion in annual Old Navy revenue is achievable by the end of this decade. Morningstar has a "buy" rating and $23.50 fair value estimate for GPS stock, which closed at $8.08 on June 1.
https://money.usnews.com/investing/dividends/slideshows/cheap-dividend-stocks-under-10
