We continue to view the bond market as a “return-free risk”. It is a very crowded trade, as institutions and individuals have fled what they perceive as riskier equity assets, for what they believe is solid income generated by bonds. Yet, with yields as low as they are today, it only takes a small move down in bond prices to wipe out…
This week we feature a business development company paying a 13.2% dividend yield; the CEO has bought 3.2 million shares (approx. $20 million) since 2015 year-end.
This week we feature an LNG tanker company paying a 12.5% annual dividend with significant capital appreciation potential to our target price.
This week we feature an industrial property REIT with a 33% potential total return to our target price.
The stock market started off the year exceptionally weak, with all major market indexes down double digit percentages going into the low on February 11. We believe much of the weakness was due to selling by foreign sovereign wealth funds, where the related country’s fiscal budget is heavily affected by the price of crude oil.
This week we feature a deep value hospitality company with a 7.7% dividend yield.