Will You Have Seven Swans a Swimming this Christmas ?

“On the seventh day of Christmas
my true love sent to me:
Seven Swans a Swimming”

The Christmas carol the “The Twelve Days of Christmas”  receives many articles written on it each year . The vast majority of the articles are written on the topic of “how much would it cost to purchase the Twelve Days of Christmas for your loved ones”. It is usually tied to some loose attempt to measure the inflation for the previous year or the past decades. Maybe the Federal Government  should start using this as their official measure of inflation for that year!

I have a different perspective on the song however, in that there is only one day of the song that catches my attention as a Dividend Income Investor. That day is Day Number Seven – A “gift of Seven Swans a Swimming”. For me this one day represents “True Love”.

Okay, for those of you that have not figured out where I am going with this I’ll explain. The term SWANS in investing lingo is an acronym that stands for “Sleep Well At Night”, meaning stocks that you don’t have to worry about.

12 Days of Christmas Lyrics

by Christmas Song

On the first day of Christmas
my true love sent to me:
A Partridge in a Pear Tree

On the second day of Christmas
my true love sent to me:
Two Turtle Doves
and a Partridge in a Pear Tree

On the third day of Christmas
my true love sent to me:
Three French Hens
Two Turtle Doves
and a Partridge in a Pear Tree

On the fourth day of Christmas
my true love sent to me:
Four Calling Birds
Three French Hens
Two Turtle Doves
and a Partridge in a Pear Tree

On the fifth day of Christmas
my true love sent to me:
Five Golden Rings
Four Calling Birds
Three French Hens
Two Turtle Doves
and a Partridge in a Pear Tree

On the sixth day of Christmas
my true love sent to me:
Six Geese a Laying
Five Golden Rings
Four Calling Birds
Three French Hens
Two Turtle Doves
and a Partridge in a Pear Tree

On the seventh day of Christmas
my true love sent to me:
Seven Swans a Swimming
Six Geese a Laying
Five Golden Rings
Four Calling Birds
Three French Hens
Two Turtle Doves
and a Partridge in a Pear Tree

On the eighth day of Christmas
my true love sent to me:
Eight Maids a Milking
Seven Swans a Swimming
Six Geese a Laying
Five Golden Rings
Four Calling Birds
Three French Hens
Two Turtle Doves
and a Partridge in a Pear Tree

On the ninth day of Christmas
my true love sent to me:
Nine Ladies Dancing
Eight Maids a Milking
Seven Swans a Swimming
Six Geese a Laying
Five Golden Rings
Four Calling Birds
Three French Hens
Two Turtle Doves
and a Partridge in a Pear Tree

On the tenth day of Christmas
my true love sent to me:
Ten Lords a Leaping
Nine Ladies Dancing
Eight Maids a Milking
Seven Swans a Swimming
Six Geese a Laying
Five Golden Rings
Four Calling Birds
Three French Hens
Two Turtle Doves
and a Partridge in a Pear Tree

On the eleventh day of Christmas
my true love sent to me:
Eleven Pipers Piping
Ten Lords a Leaping
Nine Ladies Dancing
Eight Maids a Milking
Seven Swans a Swimming
Six Geese a Laying
Five Golden Rings
Four Calling Birds
Three French Hens
Two Turtle Doves
and a Partridge in a Pear Tree

On the twelfth day of Christmas
my true love sent to me:
12 Drummers Drumming
Eleven Pipers Piping
Ten Lords a Leaping
Nine Ladies Dancing
Eight Maids a Milking
Seven Swans a Swimming
Six Geese a Laying
Five Golden Rings
Four Calling Birds
Three French Hens
Two Turtle Doves
and a Partridge in a Pear Tree

Source :http://www.metrolyrics.com/

As a Dividend Income Investor I not only want “Swans” but “I want my cake and eat it too”! This means I not only look for Swans but I look for Swans that have a higher than average yield than the majority of stocks.

So keeping in mind the needs of safety and higher yields here are my personal  “SWAN” picks that I would love for my true love to give to me on the Seventh Day of Christmas:

  1. Realty Income (O) – Equity REIT
  2. AT&T (T) – Communications/ Entertainment
  3. Main Street Capital (MAIN) – BDC ( Business Development Company)
  4. Preferred Apartment Communities (APTS) – Apartment REIT
  5. Omega Healthcare Investors (OHI) – Medical REIT
  6. Duke Energy (DUK) – Diversified Utility
  7. Lamar Advertising Company -(LAMR) – Billboard REIT

I own all these stocks in my personal portfolios and while prices of course fluctuate with the constant whims of the typical stock market, I know that when I wake up the next day these investments are rock solid and safe.

Almost everyone knows the story of AT&T, while not 100% the same company it was as the old “Ma Bell” in many ways it has evolved into something even better. It is a complete package.

Since its founding in 1969 Realty Income has grown from a single Taco Bell to almost 5,000 properties in 49 of the states and Puerto Rico. It is considered the “gold standard” of Net Lease REITs.

Another company that is considered the “Gold Standard” of its market sector is Main Street Capital a BDC (Business Development Company) which funds businesses that are starting out or growing. When people talk BDCs – the name Main Street always is singled out as the investment to be in.

When you invest in Preferred Apartment Communities you have just become the proud owner of over 31,000 multi-family units located in over 20 U.S. markets. There is no question in my mind of the viability of the rental housing markets for the foreseeable future. See related article :8 Great Stocks Yielding 8%

Omega Healthcare Investors is another great company. It is poised to take advantage of the ever growing Senior Housing and Assisted Living Facilities market. Baby boomers are a huge potential market. Omega Healthcare Investors has blessed its investors with constant Dividend increases over more than 20 consecutive quarters! See Related Article: In The Spotlight – Omega Healthcare Investors Inc.

When it comes to energy few can compete with Duke Energy. Duke Energy not only provides investors with a top notch Dividend Yield but it is one of the largest power companies in the United States. It has about seven and a half million electric customers, and approximately one and a half million natural gas customers. It produces over 52,000 megawatts of electricity. It has operated for over one hundred and fifty years.

And last but not least is Lamar Advertising Company. Lamar has many forms of advertising but perhaps the best known is its roadside billboards that are found along highways and other media forms located on transit and airports. Lamar has over 325,000 displays and in addition operates over 2,600 digital displays. There is little downside to this business. It has been in operation since 1902 – over one hundred and fifteen years.

Can you see why I sleep well at night? With great investments like these its hard not to. So maybe you should consider asking for these Seven Swans from your true love this Christmas.  It will make for a very merry year this coming year and perhaps for many more.

As always be sure to do your own due diligence prior to investing.

Here’s wishing you and yours a very Merry Christmas and a Prosperous New Year !

 

I hope you enjoyed this article and you will consider following me. I also welcome you sharing your thoughts and comments below.

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertisements

Dividend Yield Levels

“Official” Dividend Stock Yield Level Chart:

What are the Dividend yield Levels of Stocks?

I know there has been no “official” categorization of Dividend Yield levels so I am taking it upon myself to attempt to give clarity to a subject that quite frankly has irritated me for many years.

As a Dividend Income Investor that invests in high yield stocks it just angers me to read articles that call a stock yielding 2% “high yield” ! Sorry, but it is a just one of those things that is so absurd it makes me angry every time I read something like that. So, in lieu of Anger Management classes I have decided to make up my own “official” chart for the classification of Dividend Stock Yield levels.

Many have asked the following questions :

What is a Normal Yield for a Stock?

What is a High Yield Stock?

What is considered a low yield Stock ?

So here it is:

“Official” Dividend Stock Yield Level Chart:

  • None Dividend Stock – No Dividend Yield – 0%
  • Extremely Low Yield Stocks – 0% -.9%
  • Low Yield Stocks – 1.0% – 1.9%
  • Normal Yield Stocks – 2.0 % – 3.0%
  • Moderate Yield Stocks – 3.1 – 4.9%
  • High Yield Stocks –  5% – 10.9%
  • Extremely High Yield Stocks – 11% & above

 

I believe you will find this chart useful in that it gives clarity to the classification of stock dividend yields. So the next time you read an author that states that a yield of 2.5% is “high Yield” please feel free to promptly correct them and refer them to this “official” dividend yield chart!

 

As always we ask for your comments, and so that you always have access to our official dividend yield chart above please consider following me – you’ll be glad you did !

 

Six Stocks for a 9% Portfolio

“She has $40,000 to invest so her monthly income will be over $305 per month. “

Looking for stocks that will give you an average yield of over 9% with very little risk?

My sister recently asked me to come up with a portfolio of stocks that she could earn 9% on an investment from. These are the current stocks I recommended for her. The actual average yield will be 9.16% . She has $40,000 to invest so her monthly income will be over $305 per month. I have recommended that she invest $6,666 into each stock so the are equally weighted.

Here are my picks:

  1. Blackstone Mortgage Trust (BXMT) – 8.12%
  2. Vector Group – (VGR) – 7.64%
  3. Whitestone REIT (WSR) – 9.85%
  4. Care Capital Properties (CCP) – 8.28%
  5. Newtek Business Services (NEWT) – 9.13%
  6. New Residential (NRZ) – 11.96%

As always do your due diligence before investing your own money.  I own all the stocks listed with the exception of NEWT which I plan on adding within the next 30 days.

 

Thoughts or comment? We would love to hear where you stand on these picks.

In The Spotlight – Omega Healthcare Investors Inc.

Omega  Healthcare Investors (OHI)  is currently one of my favorite stocks. Not just because of its current high yield of 7.66% but because I believe in its long term mission and the long term growth of its dividend. Omega Healthcare has increased its dividend for 18 consecutive quarters, the latest of which occurred in November of 2016 and I am expecting the 19th straight increase announcement any day now. The annual dividend is currently $2.48 per share and I am expecting that to increase for the next quarter to $2.52 per share. How would you like to have a job that increased your salary every quarter ? Well you can from an Investment in Omega Healthcare. For an investor that owns $10,000 of the stock ( about 308 shares at today’s current price) This would mean going from $763.84 in annual dividends to $776.16.

Omega Healthcare is partnered with Operators of Skilled Nursing Facilities (SNF)  and Assisted Living Facilities (ALF) by financing the building facilities and leasing them back to the operators under Triple Net Leases (NNN). Its capital is provided under three different programs which are : Acquisition and Lease, Sale Lease Back, or Reinvestment. It operates as a REIT.

 

 

Omega Healthcare Investors Operator Pie Chart
Omega Healthcare Investors Operator Chart

Image Sources: Omega Healthcare Investors Website

Omega Healthcare currently has 81 operators that operate 1001 facilities that are located in 42 states and one in the United Kingdom. It’s latest credit rating was BBB-  from Fitch Ratings.

Considering all the above facts along with our current aging population I believe Omega Healthcare Investors has a bright future and makes a great long term investment for most any portfolio. This is an especially attractive investment for Dividend Income Investors as it has high yield coupled with a growing dividend and a positive long term outlook.

Want even more information? Omega Healthcare has an excellent Investor Relations presentation on its website proving a large array of facts and details along with current Balance Sheets, Income Statements and Cash Flow Statements. If you are interested in this stock it is certainly worth taking a look.

Visit Omega Healthcare Investors Website

What do you think? I would love to hear your thoughts and opinion. Please comment below!