Enjoy Monthly Income From 2 Top-Notch Opportunities

seekingalpha02-06

When was the last time you cried tears of joy?I am incredibly grateful for all the dividends pouring into my account.Retirement is easier when someone else is paying for it. Let the market do its part...

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Let the market do its part...</p>\n\n<a href=\"https://seekingalpha.com/article/4667367-enjoy-monthly-income-from-2-top-notch-opportunities\">网页链接</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Enjoy Monthly Income From 2 Top-Notch Opportunities</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEnjoy Monthly Income From 2 Top-Notch Opportunities\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-02-06 21:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4667367-enjoy-monthly-income-from-2-top-notch-opportunities><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When was the last time you cried tears of joy?I am incredibly grateful for all the dividends pouring into my account.Retirement is easier when someone else is paying for it. Let the market do its part...</p>\n\n<a href=\"https://seekingalpha.com/article/4667367-enjoy-monthly-income-from-2-top-notch-opportunities\">网页链接</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BKLN","symbol_name":"Invesco Senior Loan ETF","start_time":0,"source_url":"https://seekingalpha.com/article/4667367-enjoy-monthly-income-from-2-top-notch-opportunities","article_id":"2409405161","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2409405161","pubTimestamp":1707226500,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"When was the last time you cried tears of joy?","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BKLN":"Invesco Senior Loan ETF","BK4547":"WSB热门概念","AMC":"AMC院线","BK4084":"特种房地产投资信托","BK4234":"特殊用途房地产信托","XFLT":"XAI Octagon Floating Rate & Alternative Income Term Trust","OXLC":"Oxford Lane Capital Corp","EPR":"EPR不动产","BK4108":"电影和娱乐"},"translate_title":"享受2个顶级机会的月收入","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMC":1,"BKLN":1,"EPR":1,"OXLC":1,"XFLT":1},"content_text":"When was the last time you cried tears of joy?I am incredibly grateful for all the dividends pouring into my account.Retirement is easier when someone else is paying for it. Let the market do its part.Ben Garvin/DigitalVision via Getty Images Co-authored by Treading Softly I've never been one to be known as highly emotional. Though I am surrounded by individuals in my life who are. My one daughter, for example, has every emotion at a ten, all the time. She's either 10 out of 10 happy, 10 out of 10 sad, or 10 out of 10 angry. Because of this, she is extremely attuned to the emotional impacts of various media. It is not uncommon to find her listening to beautiful music or emotionally charged music and crying either because of the sadness contained in the song or because of the extreme joy contained within that song. She frequently has what she calls \"happy tears,\" which are just tears of joy under a different name. I'm able to enjoy a different kind of period where I get tears of joy - every single time dividends arrive in my portfolio. Ok, maybe not physical tears, but inside that is the feeling I get. Do you know the only thing that gives me pleasure? It's to see my dividends coming in. - John D. Rockefeller You see, as an income investor, my main focus when approaching the market is to get paid by that market. I have learned through the years of managing my portfolio that if you focus on what you can control the rest will take care of itself. I have focused on building my income by buying dividend-paying stocks. Whether the market is up or down, I can take actions that will increase the dividends I receive. Because of that, my total returns have grown over time. Today, I want to take a look at two opportunities that pay income monthly. You can enjoy a strong income from them month after month after month, and every time that money arrives, you can cry tears of joy knowing that it's going to come again next month as well, all while you think about all the different opportunities that you can take advantage of with them. Let's dive in. Pick #1: EPR - Yield 7.3% EPR Properties (EPR) is a real estate investment trust that specializes in experiential properties, such as entertainment, recreation, and leisure venues. In short, EPR owns places where you go to experience something. In a world where people were staying at home, that wasn't the best place to be. EPR was originally founded as a REIT for movie theaters. An asset class that historically has been extremely reliable and desirable for landlords. It is also a sector that still hasn't recovered from COVID. EPR saw one of its largest tenants, Regal, in bankruptcy court last year. The Regal bankruptcy was resolved and the lease renegotiated in an agreement that provides EPR with a lower fixed rent, but a higher percentage rent. It provides Regal with an immediate reduction in rent, but provides EPR with upside as the box office recovers. Despite this setback last year, EPR saw FFO and AFFO climb throughout the year. Importantly, EPR's dividend coverage improved with the payout ratio declining from 65% of AFFO in Q4 2022 to 56% in Q3. Source EPR Q3 2023 Supplement It should be noted that EPR does have temporary cash flow which has benefited it. EPR has been collecting rent that was deferred in 2020 during COVID, and those collections are nearing an end. In 2023, those excess collections are estimated to be approximately $0.47/share. Source EPR Q3 2023 Presentation Fortunately, EPR's management provided guidance for 2023 with and without rent deferrals collected: EPR Q3 2023 Presentation As we look forward to 2024, we don't expect rent deferral collections to be significant. As a result, we can expect 2024 earnings to be starting at a base of $4.67 FFO as adjusted. Which puts the payout ratio for 2023 at approximately 70%. For the second half of 2023, we expect the payout ratio excluding the impact of deferral collections to be in the 66-68% range. Before COVID, EPR generally targeted a 70-80% payout ratio. So is EPR likely to announce a dividend raise at earnings? That falls into the category of \"definitely maybe\". On the one hand, the run-rate payout ratio is definitely low enough to justify a modest increase. At earnings, management suggested that they expected a 4% annual per/share FFO growth was a reasonable expectation over the long run. EPR is currently operating below its target leverage range of 5-5.5x, so in the near term, growth should continue to run above 4%. That should allow EPR to increase the dividend by about $0.01/month +- to maintain a payout ratio of 70% or below. On the other hand, EPR might decide to maintain a conservative approach and keep retaining cash. There are some obvious risks. An eventual bankruptcy from AMC Entertainment (AMC) at this point should surprise nobody. Unlike Regal, EPR already renegotiated its leases with AMC in 2020. When it renegotiated the leases, EPR was well aware that bankruptcy was a very real possibility and structured the leases with an AMC bankruptcy filing in mind. Here is an exchange from the Q2 2020 earnings call:  Brian Hawthorne Hi. Good morning. My first question in a bankruptcy scenario, how comfortable are you that the AMC Master Lease will stand up in court? Greg Silvers You know, I don't think anybody can give you great assurances. But I can tell you that when we structured it, we used bankruptcy council, the latest court decisions that were out there to structure a transaction that we believe is the most formidable available.  There can be no guarantees, but EPR was able to get an overall favorable result from the Cineworld/Regal bankruptcy. It is more prepared for an AMC bankruptcy and the amount of rent involved is similar. If AMC does file bankruptcy, we expect the impact to be very similar to the impact that Cineworld/Regal's filing had, which means a far greater impact on sentiment than on actual earnings. EPR managed to grow earnings throughout 2023 despite Regal's bankruptcy filing at the end of 2022. In the meantime, EPR continues to reduce the number of theaters they have exposure to - choosing to focus on growing its non-theater side of the business. EPR Q3 2023 Supplement EPR has 11 theater properties that it intends to sell, and we can expect to see them sell this year. Meanwhile, EPR has ample liquidity to fund growth if it finds opportunities with nothing drawn on its $1 billion revolving line of credit. EPR also has the luxury of a favorable maturity schedule for its bonds. The next maturity is in August 2024 for only $136.6 million, less than 5% of EPR's overall debt. EPR Q3 2023 Supplement That is an amount small enough that EPR could entertain repaying it with cash, and if it refinances it at current rates, the principal is low enough that it will not have a material impact on earnings. The outlook for EPR in 2024 is bright. We can expect modest FFO growth, a possible dividend raise, and management is in the driver's seat in deciding how quickly to expand. On the risk side, there is a possibility that AMC will file for bankruptcy, although that risk is likely much greater in 2025/2026 as AMC has very little debt maturing in 2024. AMC Q3 2023 10-Q As noted above, we believe that if AMC were to file bankruptcy, it might have a psychological impact on share price, but would not have a significant impact on EPR's earnings. EPR should have no trouble maintaining and even growing its dividend, regardless of what AMC does. With this in mind, we are happy to continue adding to EPR at current prices. Pick #2: XFLT - Yield 13.7% We frequently talk about the massive income potential from leveraged loans through CLO equity funds. Like many types of debt investments, leveraged loans have seen their prices fall and are trading at historically high yields. The S&P LSTA Leveraged Loan Index is trading at a yield-to-maturity of 9.49%: Source S&P Global Unlike 2020, where the yield rose and quickly fell back down, the index has been trading at an elevated yield for over a year. CLO equity positions are a leveraged investment in these loans and have enjoyed huge cash flows. However, that high cash flow comes with significant volatility. One of our picks in the sector, Oxford Lane Capital (OXLC) provides exposure to CLO equity with very high yields but has also experienced high volatility in price and distributions. A rollercoaster that some investors might not care to ride. For investors who want to benefit from the high yields in leveraged loans, but want less volatility, Invesco Senior Loan ETF (BKLN) is an ETF in the sector that has no leverage. Of course, no leverage means lower yield and lower total returns as loan prices recover. It also means that the distribution is variable and will decline as interest rates decline. XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT) is a great middle option. It offers leveraged exposure to loans with a combination of CLO debt, CLO equity, and owning loans directly. Source XFLT Website By owning this mixture, XFLT has less volatility than a pure CLO equity CEF, and it was also the quickest fund in the sector to restore its distribution during COVID. It paid a reduced distribution for only 6 months, and today is paying a higher distribution than it paid pre-COVID. When we look at the rolling returns, we can see that XFLT isn't quite as volatile as OXLC, while still providing much higher average returns than BKLN. Source Portfolio Visualizer It has also provided a more stable income. XFLT took advantage of the COVID collapse, significantly expanding its portfolio in late 2020 and throughout 2021. That growth effort resumed in 2023. Source XFLT Q1 2023 Webinar While loan prices have been low, XFLT has been a buyer - positioning itself to benefit when yields decline and prices rise. For those who want exposure to the substantial cash flow being produced by leveraged loans, but don't want the volatility and violent NAV swings inherent in funds that focus on CLO equity, XFLT is a great middle-ground. A bit lower yield, but 13.7% with the potential for more distribution growth is hardly something to sneeze at! Conclusion With EPR and XFLT, we can enjoy strong income while benefitting from everyday life for most Americans. XFLT owns debt covering a wide array of the U.S. economy, and EPR owns experiential properties enjoyed by many. This allows both of today's opportunities to pay you monthly, 12 months a year. When it comes to retirement, it's nice to still receive a monthly paycheck. Many of us enjoyed either weekly or bi-weekly paychecks. It's less common only to be paid once a month, but some of us still receive monthly pay. Having the ability to receive income every month reduces some of the headaches of having to budget and spread your money over a longer period when you get it in a lump sum, especially if that is unusual or uncommon for you. Retirement should be a period of lower stress and fewer worries than you had before. Getting income monthly can help reduce the stress of your need to budget effectively and give you fewer worries month to month. This way, you can spend that valuable time doing something you enjoy, like a hobby or spending time with loved ones, instead of having to stare at your checkbook.  That's the beauty of my Income Method. That's the beauty of income investing.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":false,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"laohu8","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2409405161"}