Dividend Detective Uncovers Three High-Yielders

08/15/2019 5:00 am EST


Harry Domash

Publisher, DividendDetective and Winning Investing

Harry Domash looks beyond the typical dividend paying stock to find off-the-radar income opportunities. Here are three new buy recommendations added to the model portfolio at his newsletter, Dividend Detective.

We’re adding a new pick in fast growth mode to our model portfolio of Business Development Companies. It’s wired into the high tech venture capital market and is paying 9.7%. We’re adding TriplePoint Venture Growth BDC Corp. (TPVG) to the portfolio.

TriplePoint specializes in lending to, and taking ownership (equity) positions in companies in the startup (venture capital) stage, mostly in the high-tech and life sciences industries. TriplePoint is in fast growth mode. For instance, June quarter net income of $23.9 million was up 184% vs. year-ago. Dividend yield is 9.7%.

We’re adding another fast grower to our Dividend Speculators portfolio. We’re adding OneMain Holdings (OMF), which offers subprime auto and personal loans to individuals via a network of 1,600 branches.

In fast growth mode, OneMain reported June quarter EPS of $1.62 per share, $0.27 above analyst forecasts, and up 37% vs. year-ago. Loan originations were up 21% year-over-year. But there’s even more. Although public since 2013, OneMain only started paying quarterly dividends in February when it declared $0.25 per share.

Then, when it recently declared its third quarterly $0.25 payout, OneMain also declared a $2.00 per share special dividend, to be paid concurrently with the quarterly. Judging from the CEO’s conference call comments; higher regular and/or future special dividends, are possible.

We’re also adding a new investment grade idea to our Preferred Stocks portfolio; Aspen Insurance Holdings 6.625% Series D preferreds (AHL-D) is an investment quality credit-rated at BBB.

Aspen, wholly owned by a unit of Apollo Global Management (APO), provides reinsurance and insurance coverage to clients around the world. Recently trading at $25.44 per share, the market yield is 5.5% and the yield to their 10/1/2027 call date is 5.4%. The dividends are eligible for the corporate holders’ dividends received deduction.

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