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How To Collect Your Share of My Million Dollar Giveaway

How To Collect Your Share of My Million Dollar GiveawayWe recently kicked off the most outrageous initiative in the history of investment research. It’s called the Income Millionaire Project. And the goal is simple: create 1,000 income millionaires. That’s a $1 billion goal! No one has ever tried it before, but that doesn’t bother me. I’m so sure you can use this program to make a million bucks… I’ll pay you $1,000 to start your journey. Go here for details.

 

The Pull of Big Data’s Iron Mountain

By Igor Greenwald on October 19, 2017

Investors chasing the highest dividend yields are liable to fall for lots of value traps.

Slumping stocks with high apparent yields scooped up at deep discounts often prove no bargain, as dim business prospects responsible for the initial slide get dimmer still.

Take CenturyLink (NYSE: CTL), the highest-yielding component – by a long shot – of the S&P 500 U.S. large-cap index.

Four months ago, the stock was above $25 and yielding an attractive 8.4%, for those willing to overlook the protracted revenue decline at the legacy telecom provider.

The payout hasn’t changed, and the stock now yields a prospective 11.4%. But that’s about the only consolation for investors who are down as much as 29% since June even after pocketing the fat quarterly dividend.

Perhaps the recent merger with another broadband provider will help CenturyLink preserve its payout. But its recent business trends and the history of other companies in secular decline make that a dicey proposition.

Investors haven’t fared much better of late in S&P stocks with the next four highest dividend yields. Macy’s (NYSE: M), Seagate Technology (NSDQ: STX), L Brands (NYSE: LB) and Kimco Realty (NYSE: KIM) are anywhere from 33% to 55% below their 52-week highs. They  all face fierce business headwinds.

Despite their slumps, Kimco and L Brands still have dividend yields below 6%. Yet dividend income seekers can secure a 5.5% yield from another S&P stock riding favorable business trends and just pennies off a record high. That’s not a value trap profile.

Iron Mountain (NYSE: IRM) is a data center operator with 1,455 facilities on six continents and annual revenue in excess of $3.7 billion from more than 230,000 customers, including almost all of America’s largest corporations.

Revenue is growing organically at 2.5% a year and the company is forecasting growth of 8% to 15% this year in adjusted funds from operations, aided by acquisitions and expansion in emerging markets. Since Iron Mountain’s conversion to a real-estate investment trust two years ago, it has paid out at least 90% of available cash earnings, as all REITs must. Last year it increased its payout by 13%, though the pace of increases is likely to slow.

Iron Mountain needs to reduce elevated leverage (at 5.9x adjusted debt to EBITDA) and to retain cash in order to invest in continued growth.

Like other REITs and income investments, Iron Mountain would likely be hurt by a big increase in longer-term interest rates. But it would take a lot to stop it from continuing to deliver a decent distribution yield and modest growth.

 


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R.I.P Bull Market—Here’s How To Protect Your Wealth

I hope you’ve enjoyed the phenomenal bull market of the past eight years…

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The Federal Reserve’s nearly decade-long spending spree has finally come to an end.

With no other options left at their disposal, the Fed has no other choice than to raise interest rates to keep inflation in check.

And that leaves you with two options…

Do nothing and suffer the agony of watching the profits you’ve accumulated over the years evaporate right before your eyes…

Or reposition your portfolio and invest in companies which prosper as inflation rises and interest rates soar.

I think the choice is clear. And I’ll show you the best new positions you can take if you click here.

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