Backdoor AI Beneficiary Yields 8.8%, Trades at 13% Discount

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Backdoor AI Beneficiary Yields 8.8%, Trades at 13% Discount

Drug development will never be the same! AI is compressing time-to-market and extending the sales calendar for pharma. More profits from new medications. More new medications, too.

Many pharma and biotech stocks will boom as we enter the “sci-fi” stage of research and development. And this elite 8.8% dividend will directly benefit.

It typically takes 10 to 15 years to develop a new drug. Every month matters because patents last only 20 years. The faster a company gets a drug to market, the more months and years it enjoys with monopoly pricing power.

When patents expire, the generic versions hit the market.… Read more

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Dividend Reset = Opportunity to Grab This 9.2% Yield at a Discount

Most Wall Street “suits” are allergic to dividend cuts. These spreadsheet jockeys sooooo lack imagination. They prefer linear trends—up and to the right.

Dividend growers model nicely. Payout “resets” (cuts!) do not. So, there is often a knee-jerk reaction from analysts to sell every divvie slash they see.

Same goes for most individual income investors. These vanilla beans sold BlackRock Health Sciences Term Trust (BMEZ) late last week when BlackRock sliced the dividends for three of its popular funds.

The weaker hands sold. Big payouts remain. As contrarians, we’re intrigued.

Dividend cuts, ironically, often mark the start of opportunity. Here’s what the knee-jerk sellers miss:

  • Even after the trim, BMEZ still yields 9.2%.

… Read more

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Dividend Reset = Opportunity to Grab This 9.2% Yield at a Discount

Most Wall Street “suits” are allergic to dividend cuts. These spreadsheet jockeys sooooo lack imagination. They prefer linear trends—up and to the right.

Dividend growers model nicely. Payout “resets” (cuts!) do not. So, there is often a knee-jerk reaction from analysts to sell every divvie slash they see.

Same goes for most individual income investors. These vanilla beans sold BlackRock Health Sciences Term Trust (BMEZ) late last week when BlackRock sliced the dividends for three of its popular funds.

The weaker hands sold. Big payouts remain. As contrarians, we’re intrigued.

Dividend cuts, ironically, often mark the start of opportunity. Here’s what the knee-jerk sellers miss:

  • Even after the trim, BMEZ still yields 9.2%.

… Read more

Read More

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