I am long RSO but not with as many shares as I once owned. This is a very slow ride. Fundamentals are improving as well as asset mix. I am cautiously optimistic that AFFO will cover the div in 2015 and there will not be a cut. Patience is required for this stock and proper expectations. Quit looking for RSO to move up. If pps goes up 1.50 over the next 5 years your total annual return with an 80 cent dividend is just shy of 20%. Anyone expecting more than this is being unrealistic and will be disappointed. 20% annual returns with 75% of that coming from regular dividends; what more can you realistically want? GLTA!
It is very difficult to find a clean non financial 10% dividend payor. I have Mreits, bdcs, commercial mort reits and some closed end equity option income funds paying 10%+. Seadrill provides some diversification with exposure to oil, pays a nice dividend and someday will be worth much more than the 35.00 I paid for it. I plan to hold it and collect the dividend. Some day my heirs will probably sell it for a much more than I bought it for. I don't know and I don't care when this may be. I just like collecting the div. If you like dividends you can't focus on capital price or pps. Pick a strategy and stick with it. As long as the dividend continues you win in the end and all along the ride to the end.
I am not smart enough to time the bottom or the top but do think if you average in over the next 3 years with free cash flow it will turn out to be a good investment for years to come. These guys know the preferred markets as well as anyone. I also like John Hancock funds. HPI and HPF. They have years of history, sell at nice discounts and are earning there dividends.
That is true. Sometimes FFC trades at a premium but when the jitters come the premiums disappear fast and discounts approach the norm. The other funds are already at larger discounts so FFC has some catch up to do as was pointed out by a previous poster. That said, I think if you have free cash flow to average in over the next 3 years you won't get hurt and your blended yield will be 9% or more. Before the crash FFC was yielding in the high 7% range even though interest rates were higher than today. If we go to 4.5% on the 10 year bond then 9% on FFC's portfolio will be a solid investment with about the best cash flow/safety mix you can find. GLTA
Does anyone have recent information on the portfolio composition. Specifically is the portfolio comprised of adjustable rate loans(ARMS)? There was an article in seeking alpha but it was confusing as it referred to HTR but the stats seemed more applicable to HTS. TIA
.20 was a possibility if "some of the deals/sale of real estate occurred. I don't believe he was guiding for future sustainable income but rather that this quarter could be really good. After all if they sell depressed real estate. For a nice gain they can't do it again next quarter. Let's just hope they can make .20 consistently and inch it up from there. If that happens we are holding the brass ring for income investors.
I am seeking opinions. With the market as it is and yields on preferred funds getting closer to 9% than 8% the past few days I believe preferred stock closed end funds are now the best option available for the income investor. I live on my portfolio income and am able to reinvest enough of the income to provide for a cost of living increase each year as well generate additional reinvestment income. I own MREITS, BDCS, Equity option income cefs, some individual stocks and some individual preferreds. It's interesting that preferreds are yielding more today than they were before the meltdown even though interest rates are lower now than then. I am about 40% allocated to preferreds and think I will go to 50% + with DCA. I know they will get his when rates rise but everything else might as well. I am really only interested in the income never intend to spend any principal during my life. The income should be stable and relatively safe. Funds like HPI , HPF and JPI are 65% investment grade and about 30% leveraged. I bought into my preferred funds at yields of 9:1% and that scenario is going to return at some point.
I plan to start dollar cost averaging into preferred funds over the next 3 years generating a blended cash flow yield of 9% and not give a care about pps movement once I purchase the fund. It's nice to have capital appreciation but once your lifestyle is set it is recurring increasing income that is the key for me. Capital appreciation really only benefits my heirs because I don't intend to spend the principal.
Look at downward prices as an opportunity. You didn't lose 2 quarters dividend because you were never going to sell you shares and spend the gain. Just hold for 2 more quarters and receive the dividend. If you can buy some more and collect a bigger dividend. GLTA!
That would be nice but if Rey can cover this year and next it would be time to accumulate. Then a dividend increase would be nice for the pps.
When RSO reports next month it should provide much direction. If the cover the dividend with a little cushion then the stock is indeed cheap. Unfortunately Mr Cohen has embellished on the future so often he now is a co character in the "Boy who Cried Wolf" story. IF they can cover and present BELIEVABLE guidance the stock should move up and I will probably be a buyer of additional shares. GLTA!
Just to let you know I am receiving the highest form of flattery. Some one lacking the courage to be them self is pretending to be me. I post very little lately so good chance any posts won't be mine. I guess I am so inside this guys head he thinks he's me ha! What a loser. GLTA
I have those as well. Considering a piurchase in equal amounts of ARI, NRZ, DNI and NCT preferred D. Blended yield is 9.84% and if you overweight the NRZ and DNI just a bit you get over 10%. I think this wouold be pretty solid income with capital appreciation potential from NRZ and DNI possibly ARI but any way you look at it a nice 5,000 annual income on 50K invested. GLTA!
Very old post which one of my groupies (ha) likes to repost since he or she has no ability of their own. I am out of NCT. Recently purchased some FSC when they announced the secondary. GLTA
No activity on the ARI board. Are any RSO investors also in ARI? It looks like there might be possibilities here if it is match funded to guard against rising rates like RSO. TIA.
Trying to find information as to how rising interest rates would effect ARI. For example RSO is match funded and a rise in rates would actually increase earnings. Anyone know if that is the story here?
I agree about the last meltdown but do not think the next meltdown will be because of the same reasons. Financials, particularly MREITs and BDCs are the best values in the market today. They pay a dividend that requires absolutley no capital appreciation to beat the market over an extended period of time. I like preferred funds as well. 8% plus dividends, 70% investment grade and professionally managed. The blue chips are quite high now. They pay very little. Bonds the same. A portfolio of MREITs, BDCs and preferred funds augmented with some equity reits such as apts, good, corr, olp etc and some closed end equity option income funds can provide a portfolio cash flow of 8.5%+ with an expectation of continuing dividends and some capital appreciation and a market beating total return. GLTA!
Buy and win, do you know the tax status of the preferred units? Are they 1099 or k1? Looks llike a good preferred but not good enough for tax hassles.
I am not a stock picker. I have won nicely a few times but lost often as well. I prefer to buy for dividends, hold, receive the dividends, spend some and reinvest the rest so I have more income next year and can give my self a raise. This has worked for me for the last 19 years. The most important issue is to be sure the income will continue( that's why mortgage reits are only 10% of my portfolio) So what is the best income play today?
Remember, I do not want to go back to work and so I don't want to take unreasonable chances with my cash flow. In my opinion the equity option income funds which have been one of the best sources of income the past 3 years are getting pricey. I think if we have a correction of 20%, which we always do, the dividends will be cut. The market is high, the discounts are disappearing, and I am not sure dividends will hold up with a correction so I am not adding to my equity cefs right now. Enough already, sorry.
I am buying preferred closed end funds. John Hancock has funds selling at a discount, yielding over 8%, 65% investment grade, paying monthly with lifetime annual returns on NAV matching current dividend yields. I like HPI and HPF. Nuveen has a fund (JPI) selling at an 8% discount yielding 8%. Pays monthly and there is a kicker. It is a term fund so in a little over 10 years it is liquidated at NAV . Hancock funds did reduce the dividend by 20% during the last melt down but have increased it to the point of a 10% cut. JPI was not around during the meltdown. FFC and FLC did not cut or cut by about 3%. but are currently selling at premiums or very small discounts.
Going forward I plan to DCA into higher preferred yields with 40% of future free cash flow. Until we have the correction I will buy higher yield reits, special situation yielders(T, VZ, CTL,NRZ) with the other 60%. After the correction maybe equity option income CEFS .This is not a get rich quick plan. It's boring without home runs. But it grows the cash flow steadily