Tim Plaehn is the lead research analyst for income and dividend investing at Investors Alley, a subsidiary of Magnifi Communities. He is the editor of The Dividend Hunter, Weekly Income Accelerator, and Monthly Dividend Multiplier. Mr. Plaehn was formerly in the US Air Force serving as an F-16 fighter pilot and instructor. Several times a year he offers live training courses on income investing, covered call trading, and portfolio management.
Business development companies (BDCs) operate under special rules that limit the amount of debt they can use, and they must pay out 90% of net investment income as dividends to investors. That makes them excellent investments for those looking for income. One I like is Blue Owl Capital Corp. (OBDC), shares Tim Plaehn, editor of The Dividend Hunter.
Plains GP Holdings (PAGP) shares give us an investment in a high-quality MLP without dealing with a Schedule K-1 at tax reporting time. In March 2020, I dropped PAGP from the recommendations list when the company cut its quarterly distribution by 50%. But the current underlying operating company is a much leaner, high-cash flow one compared to 2019, counsels Tim Plaehn, editor of The Dividend Hunter.
I included SFL Corporation (SFL), known then as Ship Finance International, in the Dividend Hunter portfolio from the first issue in June 2014. Now, it is time to bring SFL back as an attractive dividend recommendation, explains Tim Plaehn, editor of The Dividend Hunter.
After a couple of bad months in February and March, the Dividend Hunter recommended portfolio has performed exceptionally well. As I write this, the Stable Dividends category has a total return of almost 20% for the year, and the Variable Dividends category is up 12%. One company I (still) like is Rithm Capital (RITM), spells out Tim Plaehn, editor of The Dividend Hunter.
The bond market drawdown that started in August 2020 has been the longest decline in the history of the bond market. Investors with assets in bond funds have suffered through a three-year bear market. Unfortunately, the way bond funds operate makes it nearly impossible to recover the losses. In this presentation, Tim will explain how bond funds operate and the problems with traditionally operated funds. He will also give you high-yield alternatives with a different structure that eliminates the biggest problem with traditional bond funds and ETFs. He'll even show you how to incorporate them into your portfolio.
When the pandemic-induced lockdowns started last year many companies suspended or severely cut back their dividend payments to conserve cash. Some have restarted, some are waiting, some may be a while until they restart, and some may not even survive. Those that haven't restarted dividends or won't for a while are close to dead money for investors. Those already paying dividends again—even in small amounts to start—are what Tim Plaehn considers to be alive. In this discussion he will look at some of the better-known names in the high-yield space to determine which stocks you should consider dead, which to consider alive, and how to make the call.
The energy sector, especially Master Limited Partnerships (MLPs) have crashed. Do they have further to go? Probably reports Tim Plaehn.