highyield

Capital Group portfolio manager Shannon Ward shares her outlook on the U.S. high yield bond market and how she seeks to avoid the peaks and valleys of an asset class with inherently higher risks.


Related resources:
10 investment themes for 2023

For industry-leading insights, support tools and more, subscribe to Capital Ideas at getcapitalideas.com.

The Capital Ideas website is not intended for use outside the U.S. In Canada visit capitalgroup.com/ca for Capital Group insights.

Ein frischer Blick auf Anleiheinvestments aus unterschiedlichen Perspektiven. Eine aktuell inverse Zinskurve, bei der die langfristigen unter den kurzfristigen Zinsen liegen, könnten Opportunitäten bei Anleiheinvestments eröffnen. Dies gilt im momentanen Umfeld gestiegener Zinsen, nach eher dürren Jahren auch für konservativere Anlagen wie Investment-Grade Anleihen, also Anleihen mit guter Bonität. Und wie sieht es im Vergleich von Europa und den

USA oder auch den Emerging Markets, also Schwellenländern aus?

Mehr Informationen zu Fixed Income Investments finden Sie hier.  

Wesentliche Risiken

Der Wert von Anlagen und die Erträge hieraus unterliegen Schwankungen. Dies kann teilweise auf Wechselkursänderungen zurückzuführen sein. Es ist möglich, dass Anleger bei der Rückgabe ihrer Anteile nicht den vollen investierten Betrag zurückerhalten.

Wichtige Informationen

Diese Marketing-Anzeige dient lediglich zu Diskussionszwecken und richtet sich ausschließlich an Anleger in Österreich, Deutschland und der Schweiz.

Stand der Daten: 9. Mai 2023 sofern nicht anders angegeben.

Dies ist Marketingmaterial und kein Anlagerat. Es ist nicht als Empfehlung zum Kauf oder Verkauf einer bestimmten Anlageklasse, eines Wertpapiers oder einer Strategie gedacht. Regulatorische Anforderungen, die die Unparteilichkeit von Anlage- oder Anlagestrategieempfehlungen verlangen, sind daher nicht anwendbar, ebenso wenig wie das Handelsverbot vor deren Veröffentlichung.

Die Ansichten und Meinungen beruhen auf den aktuellen Marktbedingungen und können sich jederzeit ändern.

EMEA 2895405/2023

In this episode Hina & Sandeep are joined by Ruth Yang, Global Head of Thought Leadership as their guest. Listen to their discussion and hear about the current challenges to the credit markets.

Our aim is to provide market participants with further advanced analytical insight into Corporate Credits, CLOs and Leveraged Finance deals, with S&P Global Ratings regular podcast, based on key features we’re seeing in corporate credits and sectors that CLOs are exposed to.

For more Leveraged Finance and CLOs Insights visit Leveraged Finance & CLOs Essentials

What part do taxes play in deciding to claim Social Security early? If Social Security creates too much provisional income so that you have to pay tax on your Social Security benefits, does it make sense to claim early? If you apply for Social Security at age 70 but could’ve been taking spousal benefits, are you owed that money? How long was the recovery from the 1929 stock market crash, really? Do higher yield investments early in retirement offset sequence of returns risk? Plus, a listener takes issue with YMYW’s dollar-cost averaging discussion, and Joe's big news in the Derails. Transcript, free financial resources, Ask Joe & Al On Air: https://bit.ly/ymyw-369

In this episode of The Upgrade podcast, we discuss S&P Global Ratings' fourth annual analysis of EBITDA addbacks. It finds most U.S. speculative-grade corporate issuers continue to be unable to achieve the earnings, debt, and leverage projections. We also discuss if EBITDA adjustments are an accurate picture of future earnings.

Related Article: EBITDA Addbacks Continue To Stack

In this podcast, investment strategist Joseph Graham discusses why investors may wish to rethink their current allocations to core bonds.

Great Renewable Energy and EV Stocks. Stocks covered include Sumitomo Metal Mining, Wuxi Lead Intelligent Equipment, Aptiv plc., Infineon, Brookfield Renewable Partners, Atlantica Sustainable Infrastructure, and NextEra Energy. Excerpts from: “The investment opportunity offered by electric vehicles,” “3 Alternative Energy Stocks to Buy Amid Investment Concerns”, “3 High-Yield Renewable Energy Stocks to Buy Right Now”

PODCAST: Great Renewable Energy and EV Stocks

Transcript & Links, Episode 65, August 27, 2021

Hello, Ron Robins here. Welcome to podcast episode 65 published on August 27, titled “Great Renewable Energy and EV Stocks.”  Presented by Investing for the Soul, investingforthesoul.com is your site for vital global ethical and sustainable investing news, commentary, information, and resources.

Remember that you can find a full transcript, links to content – including stock symbols, quotes, and bonus material – at this episode’s podcast page. It's located at investingforthesoul.com/podcasts.

Now, just a reminder. I do not evaluate any of the stocks or funds mentioned in this podcast. Also, I receive no compensation from anyone or entity covered in these podcasts.

Incidentally, if any terms are unfamiliar to you, simply Google them.

-------------------------------------------------------------

1. Great Renewable Energy and EV Stocks

I’m beginning with something a little different. The article is titled The investment opportunity offered by electric vehicles by Juliet Schooling-Latter. It’s a UK perspective that appeared on whatinvestment.co.uk. Here are some quotes from the article and comments on the companies covered. Quote.

“Very much a global trend, a recent report indicated the number of EVs will grow from 11m on the road now to 145m in 2030.¹ This, in turn, will boost various segments of the market.

Here are four stocks… from Elite-rated fund managers looking to tap into this drive.

1) Sumitomo Metal Mining. Stock pick at Baillie Gifford Japan Trust

Sumitomo Metal Mining is a top-10 holding in the Baillie Gifford Japan Trust. Manager Andy Brown says the firm has exposure to nickel and copper extraction, both integral to the EV industry in terms of the cars themselves and the batteries used to power them.

He says: ‘They have a materials business, and this is where they make a component called lithium nickel oxide. This feeds into the cathodes of electric batteries and major customers for this business are Tesla and Toyota. We believe it has fantastic growth prospects.’

2) Wuxi Lead Intelligent Equipment. Stock pick at Ninety One Global Environment

Wuxi Lead Intelligent Equipment predominantly designs, manufactures and sells battery production equipment and services to leading EV battery manufacturers in China. The firm is a holding in the Ninety One Global Environmental Fund.

Manager Deirdre Cooper says: ‘Sustainable decarbonisation will require a rapid transition towards a greener, lower-carbon transport system. Wuxi is directly exposed to one of the largest EV markets in the world and, as such, is at the forefront of decarbonisation.

‘It is also expanding sales internationally, with new customers such as Northvolt.’

3) Aptiv plc. Stock pick at Rathbone Global Sustainability fund

Did you know there are more than 8,000 connection points inside a typical EV? If any go wrong it can range from a minor to major inconvenience.

Aptiv provides fuse connectors that ensure the battery will disconnect if a spike in current reaches a potentially dangerous level, thus eliminating a potentially catastrophic event.²

The firm is a holding in the Rathbone Global Sustainability Fund. Manager David Harrison says: ‘We’ve held Aptiv in the fund since we launched. It is kind of the nerve centre of an electric vehicle.

‘We think it’s well-placed for the long run and has a management team that is very forward-thinking.’

4) Infineon. Stock pick at Liontrust Sustainable Future Global Growth fund

This German manufacturer is playing a key role in providing the chips for auto safety systems as semiconductor content in cars and other forms of transport continues to grow.

Liontrust Sustainable Future Global Growth manager Peter Michaelis says: ‘Infineon is the market leader in the chips that power the semiconductors within electric vehicles.

‘The company completed its acquisition of Cypress Semiconductor Corporation in April 2020, which it said is a landmark step in its strategic development towards offering ‘the industry’s most comprehensive portfolio for linking the real with the digital world and shaping digitalisation’.’’ End quotes.

¹Source: Clean Technica – report from International Energy Agency
²Source: aptiv.com

-------------------------------------------------------------

2. Great Renewable Energy and EV Stocks

Now turning our attention back to alternative energy stocks is this article titled 3 Alternative Energy Stocks to Buy Amid Investment Concerns by Aparajita Dutta. Found on Yahoo! Finance. Quote.

“Wind energy, the largest source of renewable electricity generation in the United States, continues to make noticeable progress. The amount of new wind capacity installed in 2020 was more than three times the amount installed in 2010. This makes us optimistic on alternative energy stocks’ growth prospects.

Also, increasing scope of the electric vehicle market is expected to boost the prospects of U.S. renewable stocks. However, the United States is lagging its Asian and European counterparts in terms of investments in hydrogen market, despite this market’s ample growth opportunities.

The forerunners in the U.S. alternative energy industry are TotalEnergies SE (TTE), Equinor ASA (EQNR) and Chesapeake Energy (CHK).” End quote.

-------------------------------------------------------------

3. Great Renewable Energy and EV Stocks

In a similar vein is this article by three analysts who appear regularly in this podcast. The article is titled 3 High-Yield Renewable Energy Stocks to Buy Right Now and is by Travis Hoium, Howard Smith, and Daniel Foelber

Here are some quotes from the article. Each analyst comments on the company they’re recommending.

“The theme with all of these companies is that they're big, diverse renewable energy asset owners with long-term contracts to sell electricity to utilities or other end customers and that fuels their dividends. As long as the renewable energy industry continues to grow and there are assets to buy at attractive yields, these are great dividend stocks to buy and hold… they're our best high-yield renewable energy stocks today…

1) Travis Hoium recommends Brookfield Renewable Partners (NYSE: BEP)

The best long-term business in renewable energy has proven to be asset ownership. Renewable energy projects usually come with 10-25 year contracts to sell electricity to utilities, businesses, or homeowners. That allows owners to finance them with debt and equity, and in this case, in the form of dividend-paying stocks. 

Brookfield Renewable Partners is one of the industry's biggest renewable energy asset owners with 21,000 megawatts of projects around the world. The company aims to generate annualized returns of 12% to 15% through organic growth in distributions of 5% to 9% and some price appreciation in the stock…

In the last year and a half, dividends paid are down partly because of a split of Brookfield Renewable Partners and Brookfield Renewable Corporation (NASDAQ: BEPC) stock and a 3-for-2 stock split. Without those events, dividends per share would be steadily higher, continuing a decade-long trend. 

As steady as dividend growth has been from a company like Brookfield Renewable Partners, there are also risks for renewable energy projects that shouldn't go overlooked. Right now, hydro assets are underperforming expectations because of drought conditions around the world, especially in Brazil… On the flip side, less rain and more sun could mean solar projects outperform expectations long term, so there's value in being a diverse and large asset owner. 

I think the stability and know-how of Brookfield Renewable Partners makes it a great long-term dividend stock. 

2) Howard Smith picks Atlantica Sustainable Infrastructure (NASDAQ: AY)

More and more companies in a wide range of industries are signing power purchase agreements with renewable energy generators to power their facilities and ensure products can be made and sold sustainably. Companies like Atlantica Sustainable Infrastructure that own or invest in that power generation are benefiting and growing from this movement. And those benefits are being shared with investors in the form of a high-yielding dividend. 

Atlantica… aims to pay shareholders 80% of generated cash. And it has been consistent growing those dividend payments in the past. Its quarterly dividend has increased by 65% in the past four years. That growth should continue as cash available for distribution increased by 12.9% in the first half of 2021. 

Atlantica's business is spread among North America, South America, and the Europe, Middle East, and Africa region… Almost 75% of Atlantica's revenue came from its renewables sector in 2020.

And 2021 is starting out strong. The company's continued investments in renewable energy assets have driven its megawatts in operation to grow 30% in the first half of 2021 compared to 2020's first half. 

The stock looks inexpensive from a price-to-free cash flow perspective, compared to peers with similar strategies. 

With a dividend yielding over 4.3%, now looks to be a good time to buy Atlantica.

3) Daniel Foelber likes NextEra Energy (NYSE: NEE)

NextEra Energy just had an impressive quarter. Its portfolio consists of natural gas, solar, wind, and other assets, giving it diverse revenue streams that allow it to weather the ebbs and flows of the energy market.

Its established presence as Florida's leading utility -- through Florida Power & Light and Gulf Power -- provides the bulk of its revenue and net income. A strong foundation from this profitable business paired with access to inexpensive debt has allowed NextEra to grow its renewable energy investments, mainly through its NextEra Energy Resources division. Today, the company is the largest producer of wind and solar energy in the U.S.

NextEra's head start in the energy transition gives it a leg up over other utilities since it has had time to build relationships, fill out its supply chain, refine its logistics, and tackle a variety of projects in different markets…

NextEra's long-term game plan is to generate predictable revenue (mostly from renewables) via long-term contracts and distribute a portion of earnings to investors through a dividend… Earlier this year, the company raised its quarterly dividend to $0.385 per share, representing a 1.9% annual yield at the time of this writing.” End quotes.

-------------------------------------------------------------

4. Great Renewable Energy and EV Stocks

Honorable Mentions

Article 1. Bain to Start Long-Short Hedge Fund Focused on Green Investing by Nishant Kumar and Melissa Karsh, on Yahoo! Finance. Quote “Bain Capital is starting a hedge fund to bet on and against companies based on sustainable-investing criteria as part of the alternative asset manager’s roughly $3 billion public-equities business.” End quote. Now, the ability to go short in a green fund is a new idea.

Article 2. My Top Renewable-Energy Stock to Buy in August by Matthew DiLallo. Quote “Brookfield (Renewable) (NYSE: BEP) (NYSE: BEPC) is increasingly becoming the partner of choice for companies that want to reduce their carbon footprint.” End quote.

-------------------------------------------------------------

Ending Comment

Well, these are my top news stories with their stock and fund tips -- for this podcast: “Great Renewable Energy and EV Stocks.“

To get all the links, stock symbols, or to read the transcript of this podcast -- and more -- go to investingforthesoul.com/podcasts and scroll down to this episode.

Also, be sure to click the like and subscribe buttons in Apple Podcasts, Google Podcasts, or wherever you download or listen to this podcast.

And please click the share buttons to share this podcast with your friends and family. Let’s promote a better post COVID world through ethical and sustainable investing!

Contact me if you have any questions.

Stay well and healthy—and conscious about the ethical and sustainable values of your investments!

Thank you for listening.

Talk to you next on September 10. Bye for now.

© 2021 Ron Robins, Investing for the Soul.

We ignore the flashing red light on the microphone, just like markets have been ignoring any number of warning signs. We discuss the bond market (or lack thereof), explore the conflicting signals sent by treasury yields, and the explore the inexplicable appetite for the currently misnamed high-yield debt. The bifurcation of equity returns between megacap and the rest is discussed, as are the potential effects of the delta variant on supply chains. We also discover Will and Adam were, unsurprisingly, both in high school Latin clubs. Caveat emptor.

Learn more about Formidable Asset Management, Will Brown, and Adam Eagleston by visiting www.formidableam.com.

In this episode, Hina and Sandeep are joined by corporate ratings analyst Solene Van Eetvelde, to discuss the French childcare provider Babar Bidco, a popular new issue credit exposed to European CLO portfolios. Listen in as we discuss the ratings and recovery ratings assigned to the credit and its outlook.

In this episode, Hina and SaIn this episode, Hina and Sandeep are joined by Gaetan Michel, Associate Director in the team covering chemical industry, to discuss the petrochemical company Ineos Quattro, one of the most popular names in European CLOs. Listen in as we discuss our views the company’s recent refinancing proposal and it’s impact on recovery ratings. Hina and Sandeep are joined by Gaetan Michel, Associate Director in the team covering chemical industry, to discuss the petrochemical company Ineos Quattro, one of the most popular names in European CLOs. Listen in as we discuss our views the company’s recent refinancing proposal and it’s impact on recovery ratings.

Learn which high-yield dividend ETFs are performing the best.

The chart is here.

Are you investing well for financial freedom...or not?

Financial freedom is a combination of money, compounding and time (my McT Formula). How well you invest, makes a huge difference to your financial future and lifestyle.

If you only knew where to invest for the long-term, what a difference it would make, because the difference between investing $100k and earning 2% or 10% on your money over 30 years, is the difference between it growing to $181,136 or $1,744,940, an increase of over $1.5 million dollars.

Your compounding rate, and how well you invest, matters! 

INTERESTED IN THE BE WEALTHY & SMART VIP EXPERIENCE?

-Asset allocation model with ticker symbols and % to invest

-Monthly investing webinars with Linda

-Private Facebook group with daily insights

-Weekly stock market commentary email

-Lifetime access

-US and foreign investors, no minimum $ amount required

Extending the holiday offer, enjoy a 50% savings on the VIP Experience. More information is here or have a complimentary consultation with Linda to answer your questions. For an appointment to talk, click here.

PLEASE REVIEW THE SHOW ON ITUNES

If you enjoyed this episode, please subscribe and leave a review. I love hearing from you! I so appreciate it!

SUBSCRIBE TO BE WEALTHY & SMART

Click Here to Subscribe Via iTunes

Click Here to Subscribe Via Stitcher on an Android Device

Click Here to Subscribe Via RSS Feed

WEALTH HEIRESS TV

Please subscribe to Wealth Heiress TV YouTube channel (it’s not just for women, it’s for men too!), here.

PLEASE LEAVE A BOOK REVIEW

Leave a book review on Amazon here.

Get my book, “You’re Already a Wealth Heiress, Now Think and Act Like One: 6 Practical Steps to Make It a Reality Now!”

Men love it too! After all, you are Wealth Heirs. :)

Available for purchase on Amazon.

International buyers (if you live outside of the US) get my book here.

WANT MORE FROM LINDA?

Check out her programs.

Join her on Instagram.

WEALTH LIBRARY OF PODCASTS

Listen to the full wealth library of podcasts from the beginning. Use the search bar in the upper right corner of the page to search topics.

TODAY'S SPONSOR

I want to take a few seconds to tell you about how I “read” more books and stay ahead of the curve. It’s by not reading books, but instead listening to them – like you are right now! With Audible, there are over 150,000 titles to choose from for your iPhone, Android, Kindle or mp3 player and…your first audiobook is FREE!

I suggest you get the audio book of Think and Grow Rich, or you can check out my website Resources page where I list all of my favorite financial books and you see exactly what books I have read and recommend you read. Then get started with Audible by visiting https://lindapjones.com/FreeBook and order your first audio book free! Get Think and Grow Rich or another book from my recommend list, and be sure to get started checking off the books you want to read with your free book from Audible!

Be Wealthy & Smart,™ is a personal finance show with self-made millionaire Linda P. Jones, America’s Wealth Mentor.™ Learn simple steps that make a big difference to your financial freedom. 

(Some links are affiliate links. There is no additional cost to you.)

Guest: Vicki Jones

Gilbert Public Schools, Director of Professional Growth and Development 

Looking to score a touchdown in the classroom? In this episode, Vick and I discuss the importance of intentional instructional design in moving students beyond "drill and kill" by leveraging high-yield strategies that allow students to "scrimmage" and make adjustments before game time.  

Want more from Vicki? Twitter: @GPSLearns

Time flies when you’re having fun in podcasts. And in this episode, Hina and Sandeep are joined by Patrick Janssen, analyst in the corporate ratings group to discuss TUI, the Germany-based fully integrated tourism group. Listen in as we discuss how TUI has been affected during the downturn and how this has affected their ratings.