bryan perry posts
FeedPosted Dec 9th 2010 12:45PM by Steven Halpern (RSS feed)
Filed under: Newsletters, Stocks to Buy
"I believe we have a unique opportunity to initiate a new position in a company that is still under the radar of most investors: CoreSite Realty Corp. (COR)," says growth and income specialist Bryan Perry.
The editor of The Cash Machine explains, "CoreSite is structured as a REIT intended to meet the strict needs of the information technology community; it manages more than 2 million square feet of data center space for more than 600 customers.
"Since the company's founding in 2001, CEO Thomas Ray has been in charge of the company's actions. (Before the initial public offering in September, Ray also served as a managing director of The Carlyle Group.)
Continue reading CoreSite (COR): Total Return from Data Center REIT
Posted Jul 9th 2010 11:00AM by Steven Halpern (RSS feed)
"It looks like we have a golden opportunity to take advantage of the macro natural gas theme, involve some professional management, diversify risk, collect a double-digit yield in the form of quarterly distributions and have a security that's appropriate for IRAs and self-directed retirement plans," says income expert Bryan Perry.
The editor of The Cash Machine explans, "I'm speaking of the Cushing MLP Total Return Fund (SRV), a NYSE listed closed-end fund that owns most of the leading gas Master Limited Partnerships.
The objective of the Cushing MLP Total Return Fund is to obtain a high after-tax total return from a combination of capital appreciation and current income. The fund will try to accomplish this by investing at least 80% of its net assets in MLPs.
Continue reading Cushing MLP Total Return: A 'Cash Machine' in Gas Partnerships
Posted Apr 13th 2010 11:00AM by Steven Halpern (RSS feed)
Filed under: Newsletters, Commodities, Oil, Stocks to Buy
"Cheniere Energy Partners, LP. (
CQP), a master limited partnership, is the owner and operator of the Sabine Pass LNG receiving terminal in Cameron Parish; the 853 acre facility is in a prime location with vast LNG capacity," notes income specialist
Bryan Perry.
The editor of
The Cash Machine explains, " The regasification ability of the terminal is about 2.6 billion cubic feet per day, and it can store about 10.1 billion cubic feet of LNG. That sounds like a lot -- and it is -- but CQP wants the Sabine Pass LNG to expand capacity even more. So in April of 2008, the company began its expansion project.
Continue reading Cheniere Energy (CPQ): Perry's Pick Among MLPs
Posted Feb 28th 2010 3:00PM by Bryan Perry (RSS feed)
Filed under: Getting Started
Most high-yield income investors want an energy component within their portfolio as a long-term cornerstone against inflation. That makes perfect sense, but only if that income vehicle can stand the test of time. It does this by replenishing reserves at a rate higher than those energy assets to the marketplace at whatever the prevailing prices are.
This is the main drawback of owning domestic energy trusts.
Continue reading High-Yield Sin #7: Buying Domestic Energy Trusts
Posted Feb 28th 2010 1:00PM by Bryan Perry (RSS feed)
Filed under: Getting Started, Mutual Funds
A common method for paying dividends from funds that invest outside the U.S. is to pay special dividends composed of short-term and long-term capital gains. The dividend policies of such funds are predicated on the ability of the fund manger to pay out whatever gains can be garnered over the course of a year depending on short-term or long-term holding periods.
Closed-end funds based on China, India and other emerging markets had explosive returns from 2003 to 2007, chalking up greater than 50% returns. But a large portion of those returns were paid out in the form of huge capital gains-based dividends and are reflected in most screening software portals that suggest these funds are still paying out these gorilla-sized dividend yields.
They're not, and the data can be hugely misleading when investors are hunting for big yields through various screening tools.
Continue reading High-Yield Sin #6: Getting Paid in Special Dividends
Posted Feb 28th 2010 11:00AM by Bryan Perry (RSS feed)
Filed under: Getting Started, Mutual Funds
All common stocks, income trusts, master limited partnerships, REITS and other pass-through entities have what is called a payout ratio. It's a number that essentially says how much of the dividend is paid out from each dollar of net income.
A company like AT&T (T) has a payout ratio of 77%, meaning that the company retains 23 cents of every dollar after dividends are paid out to put back into the business. This is a decent ratio, but something around 50% to 60% is more ideal.
Continue reading High-Yield Sin #5: Owning Securities with High Payout Ratios
Posted Feb 28th 2010 9:00AM by Bryan Perry (RSS feed)
Filed under: Getting Started, Mutual Funds
Some closed-end funds pay out what is known as managed distributions as a template for their dividend policy.
What happens here is that the fund, in its attempt to draw investor attention, states that it will pay out a managed distribution that is a percentage of the net asset value (NAV) at the end of each quarter. The idea is stability of income.
Hardly! Most closed-end funds that employ a managed distribution payout policy use 8% as the percentage of NAV they peg the fund to at the end of the quarter.
Continue reading High-Yield Sin #4: Buying into Managed Distributions
Posted Feb 27th 2010 3:00PM by Bryan Perry (RSS feed)
Filed under: Getting Started, Mutual Funds
This is one of those areas that should be treated like poison. When a big, fat, juicy dividend yield is composed in whole or in part by what is termed a return of capital, you want to steer clear.
When a mutual fund or entity pays out a scheduled dividend payment that hasn't been earned by profits or interest income, you can bet that a portion of that dividend will be in the form of a return of capital, which simply means you as an investor are receiving some of your money back as part of the dividend.
Two negative things happen here.
Continue reading High-Yield Sin #3: Receiving a Return of Capital
Posted Feb 27th 2010 1:00PM by Bryan Perry (RSS feed)
Filed under: Getting Started, Mutual Funds
Most closed-end funds trade at a premium or discount to their net asset value (NAV) for various reasons and can offer excellent investment opportunities. Locking in a high-yield payout in a discounted fund can make for some exciting total returns.
Yet some investors buy into a popular closed-end fund that is trading at an enormous premium to its NAV. Why would anyone pay up to 25% for shares of a hot closed-end fund when they could buy that same basket of stocks or bonds from their broker at real market value? It's a bit insane.
Continue reading High-Yield Sin #2: Paying Big Premiums over Net Asset Value
Posted Feb 27th 2010 11:00AM by Bryan Perry (RSS feed)
Filed under: Getting Started, Mutual Funds
This statement may come as a shock to most investors, but if there is a choice to buy a certain index or sector closed-end fund instead of an open-end fund, opt for the closed-end fund.
First of all, with the Dow showing triple-digit point swings on an intra-day basis, you never know when you may want to exit the fund if the market makes a dramatic move up or down. With an open-end mutual fund, you can only sell at the end of the day
Continue reading High-Yield Sin #1: Buying Open-Ended Mutual Funds
Posted Feb 27th 2010 9:00AM by Bryan Perry (RSS feed)
Filed under: Getting Started, Mutual Funds
In the world of high-yield securities, investors on a quest for the biggest yields are often lured into securities that either they don't understand or are simply tempted beyond their personal discipline to investigate how that yield is being supported.
If you can't identify where the "Yield Power" is that makes the king-size payouts possible, then they should avoid purchasing them.
So how do you know which ones to avoid?
Continue reading Seven Deadly Sins of High-Yield Investing
Posted Sep 24th 2009 1:30PM by Steven Halpern (RSS feed)
"All across America, college town populations are rising much faster than practically any other real estate market; that's because enrollments on a national basis are on a steady rise," says income expert Bryan Perry.
In his The Cash Machine, he looks to Education Realty Trust (NYSE: EDR), a real estate investment trust that provides high-quality student housing throughout the U.S.
Perry explains, "While it's still early to call a bottom for real estate in a number of regions -- especially in commercial properties -- one thing is for sure: Parents will give their right arms to send their kids to great colleges.
"There is a stealth bull market for apartment growth in major college towns, and rents are only going to rise in the years to come as the broader economy rebounds.
Continue reading Education Realty (EDR): Ivy league income
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