3 Fintech Stocks That Could Win Big Over the Next 5 Years

Source: Shutterstock

Fintech is one of the hottest buzz words in the market. Say “fintech stocks”, and suddenly, investors get excited.

But what exactly is fintech? It is a broad term, and essentially, fintech is just the morphing of technology and financial services. In other words, fintech stocks are the class of companies which are using technology to innovate in the traditional financial services space.

Seems pretty straight forward, right?

Right. And because the fintech space is relatively nascent, everyone is winning. Over the past year, GLB X FUNDS/FINTECH THEMATIC ETF (NASDAQ:FINX) is up 40%, versus a mere 12% gain for the S&P 500.

So far, then, betting on the whole fintech sector has been a winning strategy. But over the next several years, this strategy might not work as well. As the nascent fintech field matures, competition will intensify and there will be a clear separation of winners and losers.

Who will the winners be? Nobody knows for sure. But here is a list of my 3 favorite fintech stocks to own for the next several years:

Fintech Stocks for the Next 5 Years: Square Inc (SQ)

square stock

Source: Via Square

My favorite fintech stock is Square Inc (NYSE:SQ), owing to the company’s robust exposure to and dominant positioning in secular growth markets.

At its core, Square is a pure-play on the secular growth in mobile, card and digital payments. The company has emerged as a go-to enabler of non-cash payments for merchants of all sizes.

Why? The company’s commerce solutions are strikingly simple, convenient, and easy to use.

It used to be that accepting digital payments at some locations was a hit or miss due to the complexity of it. But today, as opposed to requiring several moving parts to support digital payments, all retailers need to complete essentially any transaction is a phone and Square technology.

Because of this enhanced convenience and the massive shift away from cash, Square has benefited from explosive growth. Revenues rose by more than 50% last quarter.

This big growth isn’t going anywhere anytime soon. Payments processing is a $26-billion-and-growing market. With the addition of ancillary markets like small-business loans and food delivery (Square’s subscription and services businesses), Square believes its total addressable market is around $60 billion.

Revenues this year are expected to be just over $1.4 billion. Clearly, the growth runway is quite big and long for SQ stock.

The only thing to worry about here is valuation. SQ stock does trade at a rather rich 130-times forward earnings multiple, and the stock’s latest move up to $60 does imply some cryptocurrency hype baked into the valuation. But while near-term valuation friction remains a concern, longer-term, SQ stock will grind higher as cash becomes a thing of the past.

Fintech Stocks for the Next 5 Years: Paypal Holdings (PYPL)

Source: Shutterstock

Much like Square, Paypal Holdings Inc (NASDAQ:PYPL) is another fintech stock that is a pure-play on the transition away from cash. But whereas Square enables non-cash payments for retailers in the brick-and-mortar format, Paypal is more of an e-commerce play on non-cash transactions.

Not surprisingly, as cash payment volume has decreased, e-commerce sales have surged. After all, you can’t pay with cash online. Thus, digital payment methods are the only options in the red-hot e-commerce space.

Paypal is behind one of the most robust and widely used digital payment methods in the world. Thus, considering how digital payments and e-commerce are inextricably linked, Paypal will remain a strong growth stock so long as e-commerce sales volume grows. E-commerce sales growth in the U.S. has only accelerated over the past year (from 15% to 16%), meaning that the e-commerce growth narrative isn’t showing any signs of being knocked off course any time soon.

As a result, the Paypal growth narrative looks quite promising in a multi-year window.

As far as the stock is concerned, the valuation is actually quite reasonable for the fintech space (35-times forward earnings) and against the backdrop of 24% revenue growth and 29% earnings growth last quarter.

Overall, then, PYPL stock looks like a good buy here and now.

Fintech Stocks for the Next 5 Years: Amazon.com (AMZN)

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This one is a bit trickier than the previous two fintech stocks.

Square and Paypal are traditional fintech stocks that are pure plays on the transition away from cash-less payments and towards digital payments. Indeed, their whole business models are based on that transition.

But Amazon.com, Inc. (NASDAQ:AMZN) operates as an e-commerce and cloud giant. While both of those components are big-growth components in their own nature, they don’t inherently fall under the fintech umbrella.

But make no mistake. Amazon will lever its massive e-commerce business to make a big jump into the fintech space.

There has been a lot talk about this recently. The idea is that Amazon has a whole bunch of consumer purchasing data, the sum of which can be used to offer optimized and highly-personalized banking services. Moreover, the company has over 100 million Prime members, presumably implying that more than 100 million consumers frequently shop on Amazon, so an in-house payment method work make sense for uniformity and convenience sake.

Even further, among tech companies, Amazon ranks highly as a company that consumers would trust with their money.

In the big picture, it seems like Amazon launching a fintech service is a matter of when, not if. This fintech component will be yet another huge growth driver alongside the company’s already red-hot e-commerce and cloud growth drivers. Put all three of those together, and it is easy to see not only why AMZN has a big valuation, but also why that valuation could be even bigger.

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If you do business with organized crime – Be Careful!

When we last checked, since 2009 the top banks had been fined a total of $204 billion. Bloomberg now reports,“Wells Fargo’s $1 Billion Pact Gives US Power to Fire Managers”:

“The settlement covers issues in Wells Fargo’s auto-lending and mortgage units. The bank revealed last year that it had forced unwanted insurance on customers who took out car loans….”

Fines are just part of the cost of doing business:

“Still, investors appeared relieved…as shares advanced 1.8 percent to $52.44…the best performer in the 24-company KBW Bank Index. The settlement should remove one overhang from the shares, especially since the penalty isn’t as bad as some analysts had anticipated….” (Emphasis mine)

Firing executives, levying fines and no jail time will not solve the problem. Does the justice department think “Next man up” doesn’t apply to organized crime?

A week later, American Banker reports, “Yet another Wells scandal; House moves closer to passing dereg bill.” Quoting from the Wall Street Journal:

“…. Just when you thought all of the various Wells Fargo scandals had been settled, or at least known about, comes word that the Labor Department is investigating the bank for allegedly pushing holders of lower-cost 401(k) plans it manages…pressuring them into buying the bank’s in-house funds.”

Meanwhile, Congress is “moving closer to passing joint legislation that would roll back parts of the Dodd-Frank law and ease regulations on small and medium banks.”

In 2016 I asked, “Should Trump get elected and try to rein them in, are the banks that confident they have bought enough members of Congress to protect their gravy train?” Maybe we have the answer.

In February, MarketWatch updated the scorecard:

“Banks have been fined a staggering $243 billion since the financial crisis.”

Add another $1 billion to Wells Fargo – they are still pale in comparison to the top three.

Where the power is

Forbes reports, “The Five Largest US Banks Hold More Than 40% Of All Deposits.” (The top five are JPMorgan Chase, Bank of America, Wells Fargo, Citigroup and US Bankcorp. Approximately 6,500 banks make up the remainder)

“Total deposits for the five largest U.S. banks have grown by 4.3% over the last twelve months – above the industry-wide growth figure of under 4%. This is a commendable feat by these banking giants…. This represents a share of more than 40% of the…. U.S. deposit market and this figure is likely to trend even higher as the largest banks continue to outperform the overall industry.

…. With the Fed hiking benchmark interest rates…the interest rate environment has finally begun showing signs of improvement. This, in turn, has tempered the deposit growth rate over recent quarters. (Emphasis mine)

…. JPMorgan’s particularly strong growth figure of 7% over the last few quarters helped it become the largest bank in the country…surpassing Bank of America, which has held that position for more than two decades….”

Two banks paid almost 50% of the fines for illegal and unethical activities – yet they remain the two largest banks in the country. Who says crime doesn’t pay?

American Banker reports, “2017 reputation survey: Banks avoid the Wells Fargo drag”:

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“While Wells Fargo’s image is in tatters – and will likely remain so for some time…. The 2017 survey revealed that the banking industry overall extended its multiyear reputation recovery among U.S. consumers, achieving a reputation score that qualified as “strong” for the first time since the Survey of Bank Reputations began in 2011.

Simply put, banks are acting more responsibly with customers – no longer processing transactions in a way that will more quickly trigger overdrafts, for example. …. And these efforts are paying off in higher reputation scores.

Of the 39 banks evaluated in this year’s survey, more than half of them received “excellent” marks from their existing customers, up from just under a third of the banks in the 2016 survey.

…. This year (Wells Fargo’s) score went into free fall, plunging to 48.6, by far the lowest of any bank. (A score under 50 is considered “weak.” Scores between 60 and 69 are “average;” between 70 and 79, “strong;” and above 80, “excellent.”)”

Overall Reputational Ratings
Bank Rating
JPMorgan 69.2
US Bancorp 67.6
Citibank 65.4
Bank of America 57.2
Wells Fargo 48.6

When I went to school 70-80 earned a C, 60-70 got a D, and anything below received an F.

The top five banks rank “average” or below.

Looks more like D’s and F’s to me!

JPMorgan, Citibank, Bank of America and Wells Fargo were fined over $150 billion for illegal activities while paying their executives billions in bonuses along the way. As they have no fear of being jailed; expect their behavior to continue.

Reuters recently reported, “Largest US banks still ‘too big to fail’: Minneapolis Fed study”. If they falter they can count on the taxpayers to bail them out once again!

Why would anyone do business with any company that has no regard for the law or their retail customers? I don’t get it!

There is a better way!

Deposit growth has slowed, now they must compete for deposits. Might they consider treating retail customers fairly? Don’t bank on it! (pun intended)

When handling retirement money, bank professionals are (theoretically) held to the fiduciary level of responsibility – meaning they must put their clients’ interests ahead of their own. Expecting the big banks to behave ethically is asking them to perform an unnatural act. Don’t be fooled! They have shown us their true colors!

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Be a good shopper

Shortly after Jo and I were married, I began looking after her mother’s (affectionately called grandma) financial affairs. Grandma held Certificates of Deposit (CD) in several local banks. Over time, Bank of America gobbled up most of these banks.

I received a letter about a maturing CD – they would automatically roll it over at a rate that seemed low to me at the time (4%). I called the bank. The local manager said, “Since you asked, I’m authorized to raise the rate by ½%.” I told her to close out the CD and send us a check.

She was shocked! I asked, “How many other elderly seniors, who need the money, are you ripping off?” She said she would mail the check and promptly hung up. While ½% more may not sound like much, it was 12 ½% increase above the first amount. How many years had grandma been getting lower than market rates? That’s not looking after your good, loyal customers.

When I deposited the check in grandma’s brokerage account I told her broker what happened.

Get with the times!

At the time, most seniors shopped CD rates in the paper and bought them locally.

Today you can go online and buy CDs through your broker. You can quickly compare rates all over the country. I found dozens of CDs paying more than the local banks. While price fixing is illegal (wink-wink!), banks in Florida were ripping seniors off!

Wolf Richter wrote a sad, but hilarious article, “I Asked my Wells Fargo Branch about CDs with Higher Interest Rates. This is What Happened Next”:

“Competition for cash is returning for the first time in 9 years, and banks hate it.”

The article seemed so extreme I decided to check it out myself.

I found current CD rates on the Wells Fargo website. I was required to enter my zip code. Are they lower in FL or AZ? Why should that make a difference? If I want to lend them money, I want the best rate.

Here are the “Standard CD rates”:

If I bought a $10,000 Wells Fargo CD at my local branch, I would receive 0.15% interest for the year. Oh boy! I’d get $15 in interest, before taxes.

I then checked my online broker and was quickly shocked:

With the click of a mouse, I could buy a 13-month Wells Fargo CD paying 2 1/4% interest, payable MONTHLY! That is 15 times more than the rates on the Wells Fargo website. No wonder they get bad grades, they are ripping off their local customers.

As interest rates rise, CDs will offer better rates to those who take their time and shop. There are over 6,000 banks to choose from. Internet shopping has never been easier, and that includes borrowing and/or lending money.

Get rid of your savings account

Most accounts are paying a fraction of 1%, not even close to keeping up with inflation. My broker offers one-month CDs paying about 10x the interest of a cash account. Ladder them properly and you can have one mature each week!

I don’t do business with any of the criminal banks. If you do business with them, put them in a competitive environment and demand the best deal. They don’t know how to compete on a level playing field.

They make famous bank robber, Willie Sutton look like a piker. The banks have turned into the robbers! At least Willie got thrown in jail. Take your time and protect yourself from being ripped off!

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Crypto Regulation (Finally)

This week we learned that Fidelity has been quietly building a cryptocurrency exchange.

According to Business Insider, Fidelity is seeking developers “to help engineer, create and deploy a Digital Asset exchange to both a public and private cloud.”

Fidelity is a giant in the financial world. It currently manages $2.4 trillion in assets.

And its job posting is just the latest sign that big financial institutions are making plans for a future that clearly involves crypto.

In the last few months, we’ve also learned that…

  • The New York Stock Exchange’s parent company is planning an exchange and custody service for institutional buyers.
  • The Nasdaq is also planning its own exchange and storage solution.
  • Coinbase is going after institutional investors. It’s already launched an offering for them. The minimum investment is $10 million, with a $100,000 flat setup fee. Coinbase charges these clients an ongoing 0.01% fee per month. That’s only 0.12% per year in exchange for security and custody. Not bad.

Speaking of Coinbase, it just took another big step forward. Here’s the meat of its announcement.

Today, we’re announcing that Coinbase is on track to operate a regulated broker-dealer, pending approval by federal authorities. If approved, Coinbase will soon be capable of offering blockchain-based securities, under the oversight of the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). This step forward is being made possible by our acquisition of a broker-dealer license (B-D), an alternative trading system license (ATS) and a registered investment advisor (RIA) license.

Coinbase has some of the world’s best securities lawyers and is backed by top (really top) venture capitalists who invested $100 million in its last round of funding.

I don’t think it would say this unless it was going to happen. That means some coins WILL become official securities soon – regulated by the CFTC, FINRA and the SEC. More new ones will follow.

Other coins will simply be classified as commodities, like gold. That’s how bitcoin and similar models will almost certainly be treated. Just this week, SEC Chief Jay Clayton said bitcoin and similar cryptos are not securities (big news for bitcoin bulls). And it sounds like the SEC will be providing more clarity soon, having just hired a new digital assets chief.

Regulation is coming (finally). That means the crypto exchanges will have to deal with a lot more paperwork and auditing. Which is probably a good thing overall. Those guys are printing money, and I bet they can’t wait to be regulated and compliant. Regulation and compliance creates a huge competitive moat – making it hard for new competitors to break in.

Some coins may be penalized for noncompliant initial coin offerings (ICOs), but I suspect most will be grandfathered in somehow. Because most coins are decentralized and controlled only partially by nonprofit organizations, it’s going to be tricky for the SEC to deal with it. The SEC’s new head of digital assets has her work cut out for her.

The presence of clear regulations will allow institutions to invest in cryptocurrencies without violating their charter (which prohibits investing in assets not approved by the government).

Why Haven’t Markets Reacted Positively?

Despite all this positive news, markets have been tepid. They’re still up significantly from last year at this time, but lately they’ve been trending down. That’s because there’s some remaining regulatory uncertainty. We don’t know exactly how all the recently ICO’d coins will be treated, for example. It’s looking like many of those will be classified as securities.

But we always knew this was going to happen. Regulation was inevitable in this political system. So the fact that it’s finally begun is a huge step in the right direction. We’re finally going to get clarity, and I believe the big buyers will love that.

Some altcoins are already being delisted from exchanges in anticipation of regulation. That’s because the regulators are coming, and nobody wants to be involved with anything the least bit dodgy.

This hurts the coins, because the fewer exchanges that list them, the fewer potential buyers there are. But it helps the exchanges stay clean.

Essentially, careful selection of coins has never been more important than it is right now. When looking at a coin these days, you need to ask yourself, “Is this something the SEC might regulate?” If it is, it’s not necessarily a bad thing. Some coins/tokens will thrive during the transformation to an SEC-registered asset. Some won’t. It will require a good community of developers and supporters to stay listed on SEC-registered exchanges.

The big takeaway is that soon, big financial firms of all sorts will be able to invest in crypto and start to use it in innovative ways. They’ll use it as a programmable form of money. They’ll use it as a hedge against inflation. They’ll hold it for their clients. And eventually, they’ll use it to buy things and transact.

The next few months (and years) are going to be very interesting. And I think crypto will end the year much higher than where we are today. I can’t say that for certain, of course. But I certainly like the odds.

The market is still treading carefully after the last pullback, but once everyone sees what’s happening… I think we’re going higher.

Good investing,

Adam Sharp
Co-Founder, Early Investing

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7 Stocks Warren Buffett Would Approve Of

Geico’s former chief investment officer, Lou Simpson, was at one point seriously considered by Warren Buffett as a possible successor to the long-time Berkshire Hathaway Inc. (NYSE:BRK.A, NYSE:BRK.B) CEO. Simpson retired in 2010, but he grew bored of life away from the office and set up SQ Advisors, a Naples-based investment advisory firm with his wife Kimberly Querrey.

As of the end of March, it had $2.9 billion in assets under management invested in just 15 companies; one of them being Berkshire Hathaway.

Although Simpson likes a concentrated portfolio of fewer than 20 stocks, it’s the way he evaluates a company that’s made him so successful.

“As Warren used to tell me, ‘You’re better off being approximately right than exactly wrong,” Simpson told a Northwestern University business school audience in 2017. “For example, one thing you need to determine is: Are the company’s leaders honest? Do they have integrity? Do they have huge turnover? Do they treat their people poorly? Does the CEO believe in running the business for the long term, or is he or she focused on the next quarter’s consensus earnings?”

Equally important, Simpson believes, is to hold your winners indefinitely, while selling your losers as fast as you can.

In February, I highlighted seven stocks to buy from Simpson’s portfolio. Now, I’ll recommend seven more.

Warren Buffett’s Former Money Guy Loves: CarMax (KMX)

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If you’ve bought a new car recently, you know how expensive they can be, which is a big reason why used-car sales remain strong.

CarMax, Inc (NASDAQ:KMX) is the largest retailer of used cars in the U.S. In fiscal 2018 it sold 721,512 vehicles at retail and another 408,509 vehicles through wholesale auctions at 73 of its 188 stores across the country.

While the number of used vehicles it sold in the fourth quarter was down 3.1% year over year, it still managed to sell 7.5% more vehicles at retail in fiscal 2018 along with a 4.3% annual increase from its wholesale auctions.

In 2018, it made $2,173 per used vehicle at retail, 10.9% higher than a year earlier while its wholesale auctions brought in $961 per vehicle, a 3.9% increase over 2017. Car Max makes more money per car than all of its competitors.

Why?

“What makes CarMax such a draw for used car buyers is excellent marketing that espouses a low-stress, hassle-free car buying experience,” wrote Jalopnik’s Tom McParland May 30. “The crux of the CarMax strategy is the “no-haggle” pricing. The price you see is what you pay.”

By providing the biggest inventory and knowing how to price its vehicles, CarMax makes more than anyone else. As wide-moat businesses go, this is a good one.

Warren Buffett’s Former Money Guy Loves: Apple (AAPL)

In February 2017, Apple Inc. (NASDAQ:AAPL) was trading around $129. Apple had just delivered strong first-quarter earnings that included an 18% increase in its services revenues to $7.2 billion.

At the time, I reasoned that the recurring revenue it generates from its services segment deliver really sweet gross margins, suggesting that AAPL stock would hit $200 sometime in the future.

Fifteen months later, Apple is trading within $7 of $200 and Warren Buffett is now its third-largest shareholder.

Recently, Apple CEO Tim Cook has been very upfront about the responsibility it has protecting its customers’ data. While I’m not sure the company’s stance is an altruistic one, but rather a smart reading of which way the privacy winds are blowing, I do think it helps ingratiate itself to its loyal group of customers and that more than anything should help the company continue to grow for years to come.

The fact that Buffett’s bought into Apple in such a big way says everything about Apple stock and why you should own it.

Warren Buffett’s Former Money Guy Loves: Sensata Technologies (ST)

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This is one company I honestly didn’t know about and that’s rare in my line of work writing about stocks.

Sensata Technologies Holding PLC (NYSE:ST) is a manufacturer of high-margin sensor products for the automotive and aerospace industries. In Q1 2018, all three of its operating segments had healthy organic revenue growth of 4.5% in its auto segment — the largest generating 60% overall — to 14.5% growth in its heavy vehicle off-road segment.

In the first quarter, it had adjusted net income of $147.0 million on $886.3 million in revenue for a 16.6% net margin, 160 basis points higher than a year earlier.

Importantly, the company converts almost all of its net income into free cash flow. This, along with record margins, suggests a price-to-cash-flow multiple of 16.7 isn’t unreasonable.

Doing well in China and playing in some of the hottest areas in technology today, I can see why Simpson likes Sensata’s stock.

Warren Buffett’s Former Money Guy Loves: Charter Communications (CHTR)

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The big question investors consider when it comes to investing in cable companies is the extent to which cord-cutting is hurting sales.

Charter Communications Inc (NASDAQ:CHTR) is no exception. Its stock is down 31% from its one-year high of $408.83 in August 2017 as a result of these concerns.

However, and it’s something I’ve often wondered when are the cable companies going to start raising broadband costs for customers who drop cable?

Apparently, it’s already happening. Accoring to Ars Technica, Comcast Corporation (NASDAQ:CMCSA) is increasing broadband speeds significantly for customers in Houston and Oregon at no extra cost — but only for those customers who also subscribe to TV.

“Cord cutters are not invited to the [speed increase] party,” wrote the Houston Chronicle in April. “Only those who bundle Internet with cable television and other services… will see their speeds go up at no extra charge.”

Charter’s ability to raise prices along with lower capital costs in the future after spending a considerable amount upgrading its network should help its stock move higher in the year ahead.

Warren Buffett’s Former Money Guy Loves: Liberty Broadband (LBRDK)

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It’s only natural for Simpson to own Liberty Broadband Corp (NASDAQ:LBRDK) given it owns 23% of Charter Communications stock as well as 100% of Skyhook Holding, which provides a positioning service to find mobile devices as well as a geospatial intelligence service for the real estate and other geography-related industries.

Liberty Broadband was spun-off from Liberty Media in November 2014. It acquired its original $2.6 billion position in Charter in May 2013 at $105.62 a share. Since then it’s added an additional 29.8 million shares at prices slightly less than $200 a share.

Liberty Broadband’s invested around $8 billion in Charter, an investment that’s now worth over $18 billion and growing.

Clearly, Simpson feels it’s worth a lot more, or he wouldn’t be holding either stock.

Warren Buffett’s Former Money Guy Loves: Axalta Coating Systems (AXTA)

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It’s not been a good year for Axalta Coating Systems Ltd (NYSE:AXTA).

In November, Axalta and Akzo Nobel N.V. (ADR) (OTCMKTS:AKZOY) called off merger talks between the two companies that would have seen Akzo Nobel’s paints and coatings business merge with Axalta.

Unfortunately, the two parties got stuck on price and decided to move on. Before the talks were canceled, Axalta shares were trading higher than $38. Since then they’ve lost almost 20% of their value.

However, the coatings business remains strong providing a good entry point for investors.

In April, I included Axalta in a group of ten stocks I put together for an all-cap portfolio. One of three mid-cap stocks, here’s my rationale for owning Axalta.

“Berkshire Hathaway owns a little more than 23 million shares of Axalta, which the company has owned since it bought most of them in a private deal in 2015 for $28 a share,” I wrote April 10. “Now finally making money on his investment, it’s possible that Buffett, as the largest shareholder, could buy the entire company to combine with its Benjamin Moore paint business.”

Despite having different investment philosophies, Simpson and Buffett sure own a lot of the same stocks.

Warren Buffett’s Former Money Guy Loves: SBA Communications (SBAC)

sbacmsn

Source: Shutterstock

SBA Communications Corporation (NASDAQ:SBAC) acquires long-term ground leases around the world so that it can erect cell towers that wireless carriers lease space on to transmit their signals to mobile customers.

The company makes money in several ways, the two primary ones being the construction of the towers and the leasing of the space on those towers. It also makes money helping wireless companies find new leasing opportunities when needed as well as from the sale of ground leases, etc.

It might seem like a simple business but it’s very capital intensive and requires a great deal of manpower to maintain all of the towers, etc. It’s not an easy business to enter without major financial backing.

It’s hard to know exactly why Simpson exited from most of his position in the second quarter. Now the second-smallest holding at just $876,000 as of the end of March; Simpson’s SBA stock was worth almost $200 million at the end of 2017. Buying a year ago for around $139 million, Simpson’s made about 44% on his one-year investment.

My guess is he wanted to reap the quick rewards and redeploy the funds into another stock he liked better.

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Our Favorite Defense Stock to Buy Has Transitioned into a Tech Juggernaut

If you’ve been following our recommendations over the years, you should beam over The Boeing Co. (NYSE: BA) stock. Since the election in November 2016, shares of this defense stock are up 158%, absolutely crushing the market.

Here’s an eye-opener for you – Amazon.com Inc. (Nasdaq: AMZN) is up “only” 126% over that same span. Over the past five years, Boeing stock is up a whopping 248%.

Of course, Boeing’s reputation took a big hit in April when a passenger was tragically killed in one of its airplanes. An engine failed on a Southwest Airlines Co. (NYSE: LUV) flight, leading to the horrific accident.

Predictably, investors reacted in a negative way. But Money Morning Defense and Tech Specialist Michael A. Robinson said that turning away from Boeing would be a big mistake.

In his recent report, he made it clear the accident was a wake-up call for airlines and the manufacturers. Indeed, passengers who typically dismiss the safety warnings given before takeoff started to pay closer attention. A photo taken by a passenger on that doomed flight showed other passengers using their safety masks incorrectly. (Money Morning Executive Editor Bill Patalon also addressed this tragedy here.)

However, everyone should take note that flying in the United States is still one of the safest ways to travel. The U.S. Department of Transportation’s Bureau of Transportation Statistics reported that domestic passenger traffic reached 741.6 million in 2017. As tragic as it is to lose one life – the first one since 2009 – the safety record here is still excellent.

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Boeing itself felt the pressure from the accident, as well as news of a possible trade war with China. But within days, the company reported record earnings from aviation and growth in defense spending.

In the last month alone, this defense stock is up another 5.8%.

And demand remains incredibly strong. The company said it needs to build over 41,000 planes over the next two decades to keep up with that demand. That’s a bonanza of over $6.1 trillion.

A lot of that will be fueled by growth in Asia, thanks to a booming middle class.

But that’s not the only catalyst for Boeing stock. You see, this aerospace and defense company has transitioned itself into a full-fledged tech juggernaut…

This Defense Stock Has Become the Best Kept Secret in Tech

While everyone knows Boeing is one of the top producers of airplanes in the world, they may not fully understand that it’s also one of the top suppliers to the Pentagon. That puts it in the sweet spot as Washington looks to beef up the military.

The Boeing DefenseSpace & Security division is a leading provider of jet fighters, helicopters, and, more recently, airborne drones. This division has brought in $70 billion in sales over the past five years.

Boeing’s AH-64 Apache, for example, is the world’s most advanced multirole combat helicopter.

You’ve also probably heard of the B-52 bomber and F/A 18 Super Hornet fighter. Yep, both Boeing’s.

And not to be left out, the company bolstered its drone effort with the October 2107 purchase of Aurora Flights Sciences Corp.

But the more mundane is not forgotten, either. The company is pushing into cargo air vehicles and even aircraft servicing.

If you thought tech stocks only came from Silicon Valley, think again. With its efforts in aviation, military, drones, passenger travel, cargo delivery, and even troop travel, you can bet Boeing will be on top for decades to come.

And if that were not cool enough, Boeing was NASA’s primary contractor to develop and build the International Space Station (ISS). Even today, its space division continues to provide engineering and management under extended contracts. Why is this important? Because Washington is also thinking about privatizing the operations of the ISS.

Boeing’s financials aren’t bad, either. After leading the Dow Jones Industrial Average higher last year, Wall Street thinks there is plenty left to go. For example, Cowen and Co. has a $430 price target on the stock (it closed at $360.10 Tuesday), calling it undervalued.

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You Won’t Believe Which Tech Giants Amazon’s Set to Destroy

Amazon (Nasdaq: AMZN) and Apple (Nasdaq: AAPL) are perhaps the world’s two best-known companies. The two firms have been dominant, sweeping aside much of their competition.

But what happens when these companies decide to enter the space that is thought to be dominated by the likes of Alphabet (Nasdaq: GOOG)Facebook (Nasdaq: FB) and Tesla (Nasdaq: TSLA)? As the late, great sports broadcaster Keith Jackson would say, “Whoa, Nellie!”

Things are about to get real interesting…

Amazon Goes Big Into Advertising

Amazon has entered just about every sector there is, so why not advertising too? It is taking its most aggressive step yet into self-serve programmatic digital ads by testing a new display ad offering that takes aim squarely at the multi-billion dollar ad revenue stream of Google and Facebook. Google brought in $95 billion from all ads last year, and UBS estimates its display ad network alone will reach $38 billion in revenue this year. Facebook took in $40 billion from ads in 2017.

Amazon’s tool permits merchants that sell on its marketplace to purchase ad spots that will follow customers around the web (the ads will appear on other websites and apps) to try and lure them back to Amazon to make purchases. Amazon is inviting a few select merchants to try the new ad system, beginning in May.

It plans to spend the next year aggressively expanding the infrastructure that it hopes will get more brands buying ad space on its websites and through its ad platform. To do so, Amazon will work with ad-tech companies, agencies and media firms to create platforms that will make buying Amazon ads as easy as using an online shopping cart.

The company has already been using its ads business to boost revenue, helping it get a bigger slice of transactions on its site. Its ad business generated $1.7 billion in revenues last year, according to the research firm EMarketer.

Related: Sell These Healthcare Stocks Before Amazon’s Doctor Starts Making House Calls

However, the ability to programmatically buy ads on Amazon should be a game changer. EMarketer had forecast that, in 2018, Amazon would generate $3.7 billion in ad revenue worldwide. But in the first quarter of 2018, Amazon already reported more than $2 billion in its ad business: that more than doubled year on year. Its CFO, Brian Olsavsky, said in the first quarter conference call “Advertising continues to be a bright spot from a product standpoint and also a financial one.” Olsavsky added that advertising was a “strong contributor to profitability”.

This aggressive move into the ad space is a smart one for Amazon. First, it is more profitable than just selling things online. Especially since many people actually come to Amazon with the intention of shopping, which is unlike Google and Facebook, where people just do browsing usually.

Second, the digital ad business is big and getting bigger. By 2021, advertising on websites and mobile devices will account for half of all ad spending in the United States, capturing a greater market share than television, radio, newspapers and billboards combined, according to an estimate from EMarketer.

And while most on Wall Street do not see Amazon as a threat to Google and Facebook, I do. First, never underestimate Jeff Bezos. I believe Amazon’s ad business will pull in $10 billion in revenues this year. That is almost half the size of its cloud business, Amazon Web Services.

Second, Amazon comes from a position of strength, with more than 40% of the e-commerce business in the U.S. Both Google and Facebook are bit players there, which gives Amazon a distinct advantage because it has more data on what consumers buy than any other platform. That should drive more business toward Amazon and away from Google and Facebook.

Related: Sell These 3 Stocks as Amazon Takes Over Banking

Now, let me fill you in on some interesting happenings at Apple, which is also taking aim at fellow technology giants.

Apple and Autonomous Driving

Some on Wall Street are disappointed that Apple has toned down its ambitions with regard to self-driving vehicles, called ‘Project Titan’.

I am not… it’s not easy building cars… just ask Elon Musk and Tesla.

Instead, Apple is focusing on providing software to vehicle makers to give riders an ‘Apple experience’. It is working currently with a subsidiary of the German automaker Volkswagen (Italdesign, a unit of Lamborghini)to transform about two dozen T6 Transporter vans into electric self-driving shuttles.

That’s not all Apple is doing. It was revealed last month that Apple now has the second-biggest fleet (55) of autonomous vehicles that is being tested on California roads. Apple’s testing fleet has expanded rapidly in recent months. After first receiving a permit to test just three autonomous vehicles in April 2017, the number of vehicles jumped to 27 in January. It has more than doubled since then to 55 vehicles. That leaves Apple second only to General Motors Cruise, which has 110 cars testing on California’s roads.

The Wall Street critics say so what… it is still far below the overall fleet of Google’s Waymo and Uber. But as usual, they are missing the big picture. Apple’s autonomous driving program is another addition to its rapidly growing services business, which is moving Apple away from its reliance on sales of iPhones.

Apple’s software and services segment which includes the App Store, Apple Care, Apple Pay, iTunes and cloud services has been a particular growth point for Apple in recent years. CEO Tim Cook knows his firm is too dependent on hardware. In January 2017, he said that he hoped to double revenue from the services segment ($7.17 billion at the time) by 2020. In its latest quarter, Apple reported a 31% year-over-year increase in the segment’s revenue to $9.2 billion.

I’m in agreement with a recent note from Morgan Stanley that said Wall Street is undervaluing Apple’s services business that includes healthcare, augmented reality and original content too. It predicted the company’s services business will represent 67% of Apple’s sale growth over the next five years.

Apple had been leaving money on the table in recent years by failing to capitalize on the rapidly-growing subscription economy. So what better way to play catch-up than a self-driving software play that it can sell to any number of automakers?

And while it is far too early to declare the winners in the race for autonomous driving technologies, I would not count out Apple. It, like Amazon, has an uncanny knack for coming out on top.

 

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What is it?
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How to Know If You Should Sell or Buy More When a High-Yield Stock’s Share Price Drops

Last week a popular high yield stock was hammered after the release of the company’s first quarter earnings report. The background facts for this stock are very similar to another widely held high yield stock that crashed in July 2017. The lessons of a year ago provide good insight on whether the price decline is a sign to buy or sell this currently troubled stock.

On May 31, Golar LNG Partners LP (Nasdaq: GMLP) reported the company’s 2018 first quarter results. Cash flow for the quarter was just 32% of the dividend rate. Management noted that the Board of Directors would review future dividend payments. The GMLP share price dropped by 29% over the next two trading days. Many investors who contacted me were convinced that a dividend cut was imminent. After reviewing the earnings report, management comments and any other facts I could find, my analysis is that the current GMLP situation is similar to what occurred with Uniti Group (Nasdaq: UNIT) in July and August 2017.

Last year the UNIT share price crashed from over $26 to a low of $13.81. The near 50% decline was due to the belief that UNIT’s primary customer Windstream Holdings (Nasdaq: WIN), which provides 70% of revenue, was soon to declare bankruptcy. A review of the financial situation and prospects for both companies revealed that possibility a bankruptcy by Windstream was unlikely, and even if, the UNIT cash flow was very well protected. This did not stop the financial press from continuing to predict the worst case.

It took six months for the market to figure out that the fear mongering was unjustified, and the UNIT share price started to recover. It is now back up to $21.80 and climbing. Investors who understood the fundamentals and bought shares at $15, $16, $17 and $18 are now very pleased with their investment decisions. Through this rough patch UNIT has continued to pay its $0.60 per share quarterly dividend.

The GMLP situation is similar.

Read More: The 10 Highest Yield Dividend Stocks Going Ex-Div This Week

Golar LNG Partners owns a fleet of LNG carrier ships and Floating Storage Regasification Unit (FSRUs). The company has a contract with its sponsor Golar LNG Limited (Nasdaq: GLNG) to purchase 50% of the initial production of a Floating Liquefied Natural Gas (FLNG) vessel. For the first quarter, distributable cash flow came up short because several vessels in the fleet have come off lease and the company is working to get them re-contracted. Management has been forthright in telling investors that this would be the case for the first half of 2018. That did not stock the GMLP share price from cratering on last week’s news.

A look at the fundamentals show that there is no reason to panic. The company has started the drop down process for its interest in FLNG Hilli Episeyo. The company has signed a 15-year Atlantic FSRU contract that will put an idle vessel back to work in the second half of 2018. These two contracts will provide enough cash flow to more than cover the current dividend rate. When other uncontracted vessels get signed with customers, GMLP will again be generating excess cash flow, and likely to raise the dividend, not cut it.

I expect that GMLP will do what management has stated and continue to the current dividend while we wait for the new contracts to bring on cash flow to make that payout secure. Even if the company does reduce the dividend it would be just for a few quarters, and then the company would be able to reinstate the payout at the current, or even a higher level.

GMLP is a stock on sale like where UNIT was in the Fall of 2017.

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Is This What Will Save Apple?

Apple’s annual developers conference kicks off on June 4. Apple watchers always keep a close eye on the conference for a sense of the company’s priorities for the next year. In the past, Apple has used the conference to roll out new products for developers to build augmented reality applications, medical research apps and more.

So what can we expect this year?

I think there will be a lot of news surrounding the true growth area of Apple’s business – the company’s software and services segment. There may be a new version of the software that runs the iPhone and iPad (iOS 12?). And a new version of the operating system for MAC is also likely as well as new software for the Apple Watch and Apple TV. Hopefully, there will be an upgrade to Siri’s intelligence – it is so much ‘dumber’ than Alexa right now.

Apple’s Growth Driver – Services

While most on Wall Street are focused on iPhone sales, I’m much more interested in Apple’s “Services” business which has become the company’s second-largest source of revenues. Businesses such as the App Store, Apple Music and iCloud storage brought in more than $9 billion last quarter, a 31% year-on-year gain. CEO Tim Cook has set a target for the business of $50 billion in annual revenues by the end of 2020.

Unlike the volatility surrounding iPhone sales, Apple’s services business has been a model of consistency, averaging a year-on-year growth rate since 2006 of 23%. It is interesting to note that according to Gene Munster – the former Apple analyst turned tech investor through Loup Ventures – that if Apple’s services businesses were valued like other SaaS (software as a service) companies, it would have a valuation of about $380 billion!

The reason why revenues at Apple’s services business has doubled in four years is straightforward – it has an installed base of more than 1.3 billion devices worldwide, up from one billion devices at the end of 2015. Tim Cook said, “With that kind of change in the installed base, with the services we have now and others that we are working on, I think this is just a huge opportunity for us.”

And it is, as Apple joins in on the fast-growing ‘subscription economy’. Subscriptions are a big part of the services business predictability. The number of paid subscriptions to Apple’s own services, including Music, as well as third-party apps that charge through the App Store (such as Netflix and Spotify), has grown to 270 million. That total has soared by 100 million in the last year alone!. Apple gets a cut of subscriptions sold through its App Store.

The Future for Apple’s Services Business

Some on Wall Street believe the current growth spurt in services will not last much longer, as growth in the installed base flattens out.

I disagree… I think Apple has more “tricks up its sleeve.” In other words, more levers to pull to grow in services. One of these is ‘Project Titan’…

Wall Street may be disappointed that Apple has toned down its ambitions with regard to self-driving vehicles (Project Titan). I am not… it’s not easy building cars from scratch… just ask Elon Musk and Tesla about that.

Instead, Apple is focusing on providing software to vehicle makers – it is currently working with Volkswagen – to give riders an ‘Apple experience’.  Apple also now has the second-biggest fleet (55) of autonomous vehicles that is being tested on California roads. Apple’s fleet has expanded quickly over recent months. After first receiving a permit to test just three autonomous vehicles in April 2017, the number of vehicles jumped to 27 in January. It has more than doubled since then to 55 vehicles. That leaves Apple second only to General Motors Cruise, which has 110 cars testing on California’s roads.

I find myself in agreement with a recent note to clients from Morgan Stanley that said Wall Street is undervaluing Apple’s services business that includes healthcare, augmented reality and original content too. It called services Apple’s “primary growth engine”, predicting the company’s services business will represent 67% of Apple’s sale growth over the next five years.

Morgan Stanley added that “We don’t see services growth slowing anytime soon.” And they’re right – it won’t be the iPhone that pushes the company through the $1 trillion valuation, it will Apple’s fast-growing services business.

Plan B Investing: Mark Zuckerberg’s Secret Plan to Make 2,524%

Famed Facebook founder and CEO Mark Zuckerberg has been in the hot seat over privacy issues. First the U.S. Congress and now European regulators.

He’s been telling them anything they want to hear because he’s already got Plan B in place and it’s promising to be even bigger than Facebook.

He’s already put $19 billion into and has been joined by some of America’s wealthiest people including Warren Buffett, Bill Gates, Michael Dell, and Mark Cuban.

Just what is Plan B?

It’s not gold, crypto or any mainstream investment but it’s set to be the most valuable asset on Earth. And if you act fast, you could earn as much as 2,524% before the year is up.

 

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Buffett could see this new asset run 2,524% in 2018. And he's not the only one... Mark Cuban says "it's the most exciting thing I've ever seen." Mark Zuckerberg threw down $19 billion to get a piece... Bill Gates wagered $26 billion trying to control it...
What is it?
It's not gold, crypto or any mainstream investment. But these mega-billionaires have bet the farm it's about to be the most valuable asset on Earth. Wall Street and the financial media have no clue what's about to happen...And if you act fast, you could earn as much as 2,524% before the year is up.
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Why We Hold Crypto

Bitcoin’s adoption cycles have been fascinating to watch over the years.

Every time there’s a sustained rise in price, more people jump on board.

Some of these new buyers drop out after the first correction, or take a small profit and don’t come back.

But some grow to appreciate the deeper side of crypto – the monetary revolution aspect. This is the “hodl” (hold) crowd.

With each adoption cycle, the base of holders increases (after they’ve survived a few major corrections, the volatility gets easier to handle).

So… what are the holders waiting for?

Those of us in it for the long haul are making a long-term bet on mainstream adoption. We envision a future where the majority of people store a chunk of their savings in various cryptocurrencies.

Here’s a classic bitcoin meme that explains the thinking.

Why do we think that this is likely to happen?

The primary reason is that many of us have lost faith in the current financial system. We view it as unsustainable and increasingly fragile.

Here’s a cynical (and somewhat oversimplified) view of the current system.

We trust banks with our money. They gamble with it. Their gambling blows up in their faces. We bail them out (or the Federal Reserve does). And then the cycle repeats.

The more bailouts – and associated monetary tinkering – that go on, the more that currency tends to lose value (purchasing power).

Our economy starts to become dependent on artificially low interest rates, and we have to push them down lower, for a longer time, to get the same result. Savers are punished and (some) speculators with access to capital are rewarded.

The root of all these problems is that there is no real limit on the creation of additional fiat money. It’s far easier to run large deficits – and borrow – when money can be conjured out of thin air. The temptation to print, borrow and bail out creates a vicious cycle.

The whole system is built on top of a bad foundation. For all those reasons, it seems inevitable that it won’t last forever.

But with bitcoin, we don’t have to store our money this way anymore. Bitcoin created a new framework for digital money that cannot be counterfeited. It’s a breakthrough technology, and it’s “open source” (free to copy and use elsewhere). Now there are thousands of cryptocurrencies all competing for market share.

What about yield? Banks don’t pay much interest these days, but at least it’s something. How will crypto compete?

You can already lend speculators your cryptocurrency in exchange for a guaranteed return. (They get the monetary upside, you get a guaranteed rate.)

Today you can collect around 4% per year for loaning your bitcoin on Poloniex. That’s a yield similar to what a “normal” savings rate used to be.

Ethereum fetches a higher premium, at more than 13%.

It’s the start of an alternative financial system. And the systems are getting better, easier and more secure each day.

And get this: There are already companies that offer their employees a choice to get paid a portion of their salaries in bitcoin. One of them is Japanese tech company GMO Internet Group, which has more than 4,000 employees.

The Baskets Theory

There are two primary theories about how mainstream adoption will play out. The first is that a single dominant cryptocurrency will emerge. This view tends to be held by the bitcoin “maximalists” and other coins’ equivalents. The argument goes something like this: Bitcoin is the oldest, largest and most secure network, which makes it likely to emerge as the sole winner.

I fall into a different camp. I believe we will use “baskets” of cryptocurrencies in the future.

Wouldn’t it be better to store your savings in a basket of private, independent forms of money? If our goal is to get away from a single point of failure (local fiat money), why wouldn’t we spread out our risk across dozens or hundreds of cryptos (once the market is more mature and stable)?

I foresee at least a dozen large cryptocurrencies and tokens. Competition is great for this market, and it would be a shame to see a single dominant player.

What About Volatility?

Today, cryptocurrencies are notoriously volatile. This will change as the market matures and the majority of investors, savers and even corporations adopt them.

Stability will come in time, but don’t expect it soon. As long as there’s more new (net) long holders coming in over the long run, the (overall) positive price growth can continue for decades. Of course, it will be bumpy until stability settles in and crypto becomes true everyday currency.

There is another advantage to the “baskets of crypto” theory. If we hold a diverse group of coins, our risks are substantially reduced. If any one coin loses a significant amount of its value, it won’t hurt much and should largely be offset by gains in other coins.

So that’s why many of us continue to hold on to those cryptocurrencies we think can last, despite the occasionally nauseating ups and downs. And it’s why we’re constantly looking for the next big opportunities.

Today we’re in the largely speculative phase. It’s early, and the infrastructure is being built as we go. We don’t know for sure that crypto will succeed.

Then again, by the time we do know whether this experiment will succeed or not, prices will either be much lower than today or hundreds/thousands of times higher.

Crypto remains one of those rare, calculated risks with extreme upside and limited downside. I say “limited” because it’s limited to the size of your investment.

Act accordingly, and don’t bet money you can’t afford to lose. If you look at crypto this way, you’re less likely to get hurt and more likely to make money by adopting the long-term perspective.

Good investing,

Adam Sharp
Co-Founder, Early Investing

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5 Low Risk Income Stocks Profiting from Stock Market Volatility

After a long period of low volatility, the measurement of stock price movement has moved much higher in 2018. Higher volatility is usually accompanied by big down days in the stock market. Over the last five months, the U.S. market has turned from a place of easy profits to one that has been tough on investor portfolio values. To make lemonade from lemons, consider those investments products that can pay you more based on increased volatility.

Measured volatility increases when the stock market goes down. The reason the metric was so low in 2017 is because down days were few and of limited magnitude. A recent article from Bloomberg highlighted the fact that in 2018 the average down day move of the S&P 500 this year has been 24% greater than the average up day gain. This is the largest gap since 1948. As I noted, down days result in increased volatility, so it’s understandable that even though the current S&P 500 is close to where it started the year, volatility has made stock investing more nerve racking. This year-to-date chart of the SPDR S&P 500 ETF (NYSE: SPY) graphically illustrates the volatility.

The widely quoted volatility index or VIX is derived from the prices of options contracts trading against the S&P 500. Many investors do not know that VIX is just a measure of options prices. This means that when volatility or VIX is elevated, traders who sell options are making more money. While options trading can be complicated and risky, there are income focused investment products that use option selling to enhance cash flow and support dividend payments from a portfolio that without options would not carry as attractive a yield.

You can find these buy-write or covered call products in the form or ETFs or closed-end funds. When you invest in one of these funds, you should look for recent dividend increases due to higher volatility, or if you buy shares in funds that haven’t yet increased payouts, sell the shares if you don’t get a dividend boost in the next quarter or two.

Here are five funds to consider:

PowerShares S&P 500 BuyWrite ETF (NYSE: PBP) is the largest buy-write ETF by assets under management. As an ETF, the fund tracks a specific index, in this case the CBOE S&P 500 BuyWrite Index.

This strategy consists of holding a long position indexed to the S&P 500 Index and selling a succession of covered call options, each with an exercise price at or above the prevailing price level of the S&P 500 Index.

The fund’s one, three and five year annualized returns have been 6.59%, 6.36%, and 6.57%, respectively. These returns reflect the ETF’s 5.0% yield plus most share price gains. Dividends vary significantly from quarter to quarter.

Nuveen S&P 500 Buy-Write Income Fund (NYSE: BXMX) is a closed-end fund that seeks to substantially replicate the price movements of the S&P 500 Index and by selling index call options covering approximately 100% of the Fund’s equity portfolio value with a goal of enhancing the portfolio’s risk-adjusted returns.

This fund has picked up more return from share price gains, averaging 10.7% over the last three years, against a 7% dividend yield.

Pricing is reasonable, with BXMX shares trading at a 1.3% premium to NAV.

Horizons NASDAQ 100 Covered Call ETF (Nasdaq: QYLD) is an ETF that tracks the CBOE NASDAQ-100® BuyWrite Index. As a result, this ETF will be more focused on the large technology stocks that make up a large part of the Nasdaq 100 stock index.

QYLD pays monthly dividends that have been quite consistent.

One-year and three-year average returns have been 12.3% and 10.3%, respectively.

The ETF carries a 10% yield, so most of your return will be the dividend payments.

Nuveen Nasdaq 100 Dynamic Overwrite Fund (Nasdaq: QQQX) is a closed-end fund using the Nasdaq 100 Stock Index as its basis for covered call writing.

Nuveen puts the “Dynamic” in this fund by selling call options on 35% to 75% of the value of the Fund’s equity portfolio –with a 55% long-term target– in an effort to enhance the Fund’s risk-adjusted returns. QQQX has put up an impressive 18.66% average return for the last three years while paying an approximate 6% dividend.

This is a buy-write fund that will give you a greater portion of the changes in the underlying stock index – either up or down.

QQQX is trading at a very stiff 15.6% premium to NAV.

First Trust Enhanced Equity Income Fund (NYSE: FFA) is a closed-end fund where the managers actively manage the stock portfolio and enhance income by selling call options.

The fund has produced a 6.8% average return for the last three years, and 9.5% per year over the last five years. Currently call options are out on 55% of the portfolio.

The dividend yield is a handsome 7.4% and the dividend rate has been increasing since 2013.

The shares are trading at a 6.1% discount to NAV.

Get up to 14 dividend paychecks per month from safe, reliable stocks with The Monthly Dividend Paycheck Calendar, an easy-to-use system that shows you which dividend stocks to pick, when to buy them, when you get paid your dividends, and how much.  All you have to do is buy the stocks you like and tell them where to send your dividend payments. For more information Click Here.