In his industry leading Dividend Detective newsletter, Harry Domash looks at a diverse range of income opportunities; here, he reviews 4 new ideas — a financial sector REIT, a growth-oriented ETF, a closed-end fund, speculative business development company.
We’re adding a new name to to our Finance REITs portfolio. Redwood Trust (RWT) originates loans secured by residential, commercial and multifamily real estate properties. In September, Redwood increased its quarterly dividend by 17% to $0.21 per share. That was on top of a 13% payout hike in June. Redwood is paying a 6.5% dividend yield.
In our ETF Growth Opportunities, our new pick is Impact Shares YWCA Women’s Empowerment ETF (WOMN). In theory, Impact tracks an index that provides exposure to companies that support women’s issues. It holds mostly tech and communications stocks.
Impact returned 38% over the past 12-months. Based on its last four payouts, Impact pays a 5.2% dividend yield, but that includes a large 2020 December quarter capital gains distribution, which may not be repeated.
In our CEF Growth Opportunities portfolio we’re adding Clough Global Opportunities (GLO). Clough uses fundamental analysis to pick mostly U.S.-based, large-cap, equities.
Hardly buy and hold, Clough turns its portfolio rapidly, almost three times per year. Clough has returned 45% over 12-months and averaged 30% annually over two years. The dividend yield is 10.7%.
We’re also adding a new pick to our Dividend Speculators portfolio, that I view as a natural for that portfolio. SuRo Capital (SSSS) is a Business Development Company (BDC) that invests in startups that haven’t yet gone public.
SuRo pays dividends from returns received from selling assets. It has no recurring income, instead paying dividends using cash received from selling assets.
In the last 12 months, SuRo paid dividends totaling $5.97 per share. Based on that figure, SuRo’s dividend yield calculates to 46.2%. But, in the entire year 2020, dividends totaled only $0.65 per share.
In 2019 SuRo’s payouts totaled $0.32. Nothing was paid in 2017 and 2018, and SuRo paid out $2.80 per share in 2016. Thus, SuRo is truly a speculative play.