Key Points
References
| Reference_description_with_linked_URLs____________________ | Notes______________________________________________________________________ |
|---|---|
| https://seekingalpha.com/article/4287265-goldman-sachs-recommends-10-high-yield-stocks-6-actually-worth-buying-today?li_source=LI&li_medium=liftigniter-widget | good dividend companies 190905 |
| https://seekingalpha.com/article/4295804-building-retirement-portfolio-6-percent-9-percent-yield-part-1?isDirectRoadblock=false | SA - Evaluate BDC loan quality |
| https://seekingalpha.com/article/4295239-seagate-looking-future | STX 191007 - competitive, well-run, demand for HDD will slowly decline revenue, margins should decline slowly lowering price over time |
Stock option lists
st-stock-options-210118-screener_results.xlsx
Key Concepts
Stable companies in unstable times for bull credit put spreads
https://www.fidelity.com/insights/investing-ideas/stocks-tumultuous-times
Verizon VZ
Kimberly-Clark KMB
Hormel Foods HRL
Walmart WMT
Novo Nordisk NVO
Consolidated Edison ED
Walgreens Boot Alliance WBA
ATT
190817 - coming breakout from 35 to 40 ?
https://finance.yahoo.com/news/looks-2-big-catalysts-place-091657707.html
The breakout bull thesis in AT&T stock rests on two big catalysts. The first of those catalysts is the forthcoming widespread roll-out of 5G connectivity.
210209 - ATT unlikely to grow revenues, margins will be under pressure
- entertainment group will generate profit but remain a poor investment return after COVID
- wireless losing share on 5G to TMobile so long-term cash flows expected to decline continuously
- Other areas may have growth but not enough to offset cash flow generation declines in 2 main businesses: security, business networking services, FirstNet
- dividend growth may remain relatively flat. IF cash flows fail greatly, expect future cut down the road if buybacks don't solve problem
- significant risk for PE compression to levels similar to Verizon leading to greater capital losses
Potential Value Opportunities
Some strong dividend companies
190905
But high-yield stocks are also trading at their most undervalued levels relative to low-yield stocks in 40 years. That's a VERY good reason to buy undervalued quality high-yield stocks today.
Of Goldman's 10 picks (T, KSS, ADM, VLO, CFG, ABBV, ETN, STX, SGP, and EVRG) KSS and STX don't make my quality cut-off.
VLO and EVRG are more than 20% overvalued, meaning T, ADM, ABBV, ETN, CFG, and SPG are reasonable to very strong buys today.
There are superior alternatives to T and CFG, including TU, WFC, BNS, TD, and CFR. This means I would personally only recommend buying ADM, ABBV, ETN, and SPG today.
Potential Challenges
Candidate Solutions
Step-by-step guide for Example
sample code block