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.
More from Harry Domash: Automatic Data Processing (ADP): 2019 Top Picks' Mid-Year Update
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.
See also: Merger Talk Boosts Pfizer
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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