Insights
Lower Prices, Higher Yields
The markets for income oriented stocks have been unsettled lately, and some of the income stocks we follow have seen price declines. This can look discouraging at first glance, but in reality it can mean that there are quality companies with proven dividend records that are suddenly trading at better prices. When you can buy…
Read MoreWhy Net Investment Income Is the Gold Standard for Evaluating BDC Dividends
When evaluating Business Development Companies (BDCs) for dividend sustainability, savvy investors know that traditional earnings metrics can be misleading. Unlike regular corporations where net income provides a clear picture of profitability, BDCs require a more specialized approach to financial analysis. At Fly High Investing, we’ve seen firsthand how focusing on the wrong metrics can lead…
Read MoreThink Like a Business Owner – Market Volatility Shouldn’t Shake Dividend Investors
The last two weeks the stock market has been throwing investors a curveball. Headlines scream volatility, red numbers flash across screens, and fear spreads. But as dividend investors, we must remind ourselves: We’re not just buying tickers on a screen. We’re investing in businesses. If you owned a franchise, say a McDonald’s or a Dunkin’,…
Read MoreThe Importance of Portfolio Rotation for Income-Focused Investors
At Fly High Investing, our primary focus is on building and maintaining portfolios that generate consistent and reliable income. For investors prioritizing income over capital appreciation, portfolio rotation is a crucial strategy that ensures earnings remain robust and dividends sustainable over time. Portfolio rotation involves reassessing and reallocating holdings within a portfolio to better…
Read MoreThe Dividend Dilemma – Qualified vs Unqualified Dividends and Their Role in Different Accounts
While we touched upon Regulated Investment Companies and Qualified vs Unqualified dividends in a previous article, we thought it would be beneficial to dive deeper… When it comes to maximizing the income from your investments, understanding the nuances of dividends, especially how they’re taxed can make a huge difference. Dividends, whether qualified or unqualified, serve…
Read MoreStock dips from a public share offering
When a company announces a public offering of common stock such as RITHM Capital has this week, it typically results in a temporary dip in its stock price for several reasons. First, the increase in the number of available shares leads to dilution, where each shareholder’s percentage ownership in the company decreases, thus reducing the…
Read MoreBeyond P/E ratios: How to uncover dividend opportunities
At Fly High Investing, we focus on a comprehensive view of earnings ratios to evaluate the sustainability and potential of dividend-paying stocks. You might be interested to find that we also use the price-to-earnings (P/E) ratio as a metric to determine whether a stock might be over or undersold, however it is not the core…
Read MoreAvoid the Dividend capture strategy…
It isn’t as easy as it sounds. If you are not familiar how it works, you buy a stock right before the ex-dividend date to capture the dividend, then sell it right after. Sounds like a quick win, right? But here’s the kicker: stock prices tend to drop by the dividend amount on the ex-dividend…
Read MoreDividend Growth vs. High Yield: Which Strategy Wins?
When it comes to dividend investing, the debate today is usually between Dividend Growth and High Yield strategies which often sparks discussion among seasoned investors. Dividend Growth focuses on companies that gradually increase their payouts over time, but these increases usually start from a relatively low base. In contrast, High Yield strategies target companies offering…
Read MoreEffects of Leverage on Dividend Stability in Income-Paying Companies
Leverage has a significant impact on the dividend stability of Regulated Investment Companies (RICs), such as Real Estate Investment Trusts (REITs) and Business Development Companies (BDCs), which are required by law to distribute at least 90% of their taxable income as dividends to shareholders. This obligation creates both opportunities and challenges in maintaining dividend stability,…
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