Pausing For Breath

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.
With the Dow down six consecutive days for the first time since last August, it has been a rough-and-tumble week for your Dividend Pro portfolio. You were stopped out of Navios Maritime Partners L.P. (NMM) yesterday — though the stock did pay out a 44-cent dividend on May 8.
 
With the sell-off in the market, I am holding off on a new Dividend Pro recommendation until the market catches its breath.
 
But here’s what’s great about your portfolio of high yielders: you’ll still get paid your dividends, no matter what Mr. Market’s mood swings.
 
For example,  your position in the Global X SuperDividend ETF (SDIV) will pay you its monthly dividend of 10.9 cents per share today if you were a shareholder of record on May 3.
 
Vanguard Natural Resources (VNR) will be pay you 59 cents per unit on May 15 if you were a shareholder of record as of May 8.
 
Here is some more good news, based on what I recently read on sentimentrader.com.
 
The Dow Jones Industrial Average now is down six consecutive days. And it’s not often that we see such a losing streak during what has been a strong market. In fact, going all the way back to 1900, there have been 19 occurrences of the Dow pulling back six consecutive days yet still being more than 5% above its 200-day moving average. The last one was in 2006, and that was the only occasion in the past 20 years.
 
A month later, the Dow sported a positive return after 15 of the 19 precedents, and its median return was an impressive +4.6%. That bodes well for the month ahead.
 
Finally, with the initial public offering (IPO) of Facebook coming up this week,  you may see a strong bounce in Hercules Technology Growth Capital (HTGC), which holds a $9.4-million stake in Facebook.

Portfolio Update

Seadrill (SDRL) dropped 8.11%. The long-term prospects for deepwater oil exploration remain as strong as ever. And Seadrill’s 8.6% dividend remains secure. SDRL is now a HOLD.
 
Hospitality Properties Trust (HPT) dropped 7.32%. The company announced earnings, beating on revenues, but falling $0.01 per share short on earnings. HPT is a HOLD.
 
Vanguard Natural Resources (VNR) fell 7.21%. VNR will be paying 59 cents per unit on May 15 to shareholders of record as of May 8. Now below its 50-day moving average, VNR is a HOLD.
 
Global X SuperDividend ETF (SDIV) tumbled 3.37% this past week. The fund will pay out a monthly dividend of 10.9 cents per share today to shareholders of record on May 3. Still trading under its 50-day moving average, SDIV remains a HOLD.
 
Two Harbors Investment Corp. (TWO) remained remarkably robust, falling a mere 0.67%. The company acquired $6 million single family homes during the first quarter, closing on over 300 homes. Still above its 50-day moving average, TWO remains a BUY.
 
Hercules Technology Growth Capital (HTGC) dropped back 3.94%. The company raised its quarterly cash dividend to $0.24 per share, up $0.01. This was its 27th consecutive increase in quarterly dividend distribution. The dividend will be payable on May 25, 2012, to shareholders of record as of May 18, 2012. The company also owns $9.4 million of Facebook stock. Trading below its 50-day moving average, this bet on Silicon Valley tech is a HOLD.
 
ETRACS 2x Leveraged Long Alerian MLP Infrastructure Index ETN (MLPL) fell 7.36%. This leveraged bet on Multilevel Partnerships  is now a HOLD.
 

P.S. Please join me for the Las Vegas Money Show, May 14-17, at Caesar’s Palace. To register, call 1-800/970-4355 and mention priority code 026655 or go to NicholasVardy.lasvegasmoneyshow.com. I also encourage you to sign up for my hedge fund seminar, Wednesday, May 16, 9 a.m. – 11 a.m. In addition, please click here to sign up for my private meeting at the MoneyShow for you and my other subscribers on Wednesday, May 16, 12:15 p.m.-1 p.m., in the Salerno Room.

Exclusive  My Favorite Way to Play the ‘Small-Cap’ Effect

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE


img
previous article

[youtube_sc url="http://youtu.be/8LKyaXcsTNA"] The market’s taken a stiff smack over the past week, and that’s chiefly due to European voters. Over the weekend, elections in France and Greece clearly demonstrated that citizens in both countries have rejected fiscal austerity measures deemed necessary by the European Union in order to receive billions in bailout funds. In France, voters elected Socialist Party leader François Hollande as president, summarily dismissing incumbent Nicola

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE