2017 High Yield Dividend Portfolio

2017 Model High Yield Dividend Portfolio
We have our own set of standards for High Yield Dividend Stocks.  A lot of places will call a 3% yield a high yield stock.  I didnt realize hoping to keep up with inflation was considered high yield but I guess to them it is.  We set our Benchmark at 6.5% minimum for a stock to be considered a high yield dividend stock.
Below is our model portfolio for the 2017 year for high yield stocks.
Gladstone Financial (GOOD) 7.59% Yield (Weight 23%) $19.40
Gladstone Commercial Corporation is a real estate investment trust (REIT). The Company focuses on acquiring, owning and managing office and industrial properties, and making long-term industrial and commercial mortgage loans. The Company’s portfolio of real estate is leased to a section of tenants ranging from small businesses to large public companies.
The Company owns a total of approximately 100 properties across over 20 states. The Company conducts its activities, including the ownership of its properties, through Gladstone Commercial Limited Partnership (Operating Partnership). The Company controls its Operating Partnership through its ownership of GCLP Business Trust II, which is the general partner of its Operating Partnership, and of GCLP Business Trust I, which holds all of the limited partnership units of its Operating Partnership. The Company’s principal investment objective is to generate income from rental properties and mortgage loans.
They have been able to keep an extremly high rental rate on it’s properties exceeding 98% occupancy mostly on long term leases.  Insiders are also diving in head first buying up shares.
Insider Transaction History
Date Name-Position Transaction Shares Price Range ($) Shares Held Mkt Value
12/12/16 Cutlip Robert G
President   Purchase 200 19.26 – 19.26 31,900 $3.9 K
11/14/16 Cutlip Robert G
President   Purchase 500 17.84 – 17.84 31,700 $8.9 K
11/3/16 Sodo Michael
Chief Financial Officer   Purchase 1,800 16.57 – 16.57 1,800 $29.8 K
Cutlip Robert G
President   Purchase 1,000 16.53 – 16.53 31,200 $16.5 K
10/10/16 Cutlip Robert G
President   Purchase 500 17.88 – 17.88 30,200 $8.9 K
9/12/16 Cutlip Robert G
President   Purchase 200 17.80 – 17.80 29,700 $3.6 K
8/26/16 Merrick Caren D
Director   Purchase 2,816 17.76 – 17.76 2,816 $50.0 K
8/15/16 Cutlip Robert G
President   Purchase 500 18.00 – 18.00 29,500 $9.0 K
7/11/16 Cutlip Robert G
President   Purchase 500 17.25 – 17.25 29,000 $8.6 K
3/7/16 Cutlip Robert G
President   Purchase 400 15.61 – 15.61 28,500 $6.2 K
2/25/16 Wilkinson Walter Ho…
Director   Purchase 3,300 14.64 – 14.64 6,613 $48.3 K
Cutlip Robert G
President   Purchase 3,000 14.57 – 14.57 28,100 $43.7 K
2/1/16 Cutlip Robert G
President   Purchase 200 14.07 – 14.07 25,100 $2.8 K
1/5/16 Cutlip Robert G
President   Purchase 500 14.37 – 14.37 25,400 $7.2 K
Cutlip Robert G
President   Purchase 500 14.37 – 14.37 24,900 $7.2 K
If you go back a year the purchases are even more impressive.
First Trust New Opportunities MLP & Energy Fund (FPL) 9.75% Yield (Weight 20%) $12.84
First Trust New Opportunities MLP & Energy Fund is a non-diversified closed-end management investment company. The Fund’s investment objective is to seek a high level of total return with an emphasis on current distributions paid to common shareholders.
The Fund seeks to provide its common shareholders with a vehicle to invest in a portfolio of cash-generating securities, with a focus on investing in master limited partnerships (MLPs) and MLP-related entities in the energy sector and energy utilities industries. It may invest a portion of its assets in the equity securities of issuers domiciled in jurisdictions other than the United States Investments in the securities and instruments of non-United States issuers involve certain considerations and risks not associated with investments in securities.
The Fund invests in industries, such as pipelines, electric power, propane, natural gas utility, coal and marine transportation. First Trust Advisors L.P. is the advisor of the Fund.
With Oil prices on the rise our opinion is there is only room for the dividend to move up along with the share price.  This seems like a double winner to us.
Orchid Island Capital Announces  (ORC)  15.37% Yield (Weight 12%) $10.80
Orchid Island Capital, Inc. (Orchid) is a specialty finance company that invests in residential mortgage-backed securities (RMBS). The Company’s business objective is to provide risk-adjusted total returns to its investors over the long term through a combination of capital appreciation and the payment of regular monthly distributions.
Its portfolio consists of two categories of Agency RMBS: traditional pass-through Agency RMBS and structured Agency RMBS. Its pass-through securities are the securities secured by residential real property in which payments of both interest and principal on the securities are generally made monthly.
The mortgage loans underlying pass-through certificates include fixed-rate mortgages, adjustable-rate mortgages (ARMs) and Hybrid ARMs. Its structured Agency RMBS consists of collateralized mortgage obligations, interest only securities, inverse interest only securities and principal only securities, among other types of structured Agency RMBS.
Interest rate hikes have mostly been factored into the price of the stock so any further hikes should have minimal impact though it should be watched.
Oxford Lane Capital Corporation (OXLC) 22.68% (weight 8%) $10.45
Oxford Lane Capital Corp. is a non-diversified closed-end management investment company. The Fund’s investment objective is to maximize its portfolio’s risk adjusted total return and seeks to achieve its investment objective by investing in structured finance investments, specifically collateralized loan obligation (CLO) vehicles, which primarily own senior corporate debt securities.
The Fund holds debt investments in over three different CLO structures and equity investments in approximately 30 different CLO structures. Its investment strategy also includes investing in warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle.
The Fund may also invest, on an opportunistic basis, in corporate debt securities on a direct basis and a range of other corporate credits. Oxford Lane Management, LLC (OXLC Management) is the investment advisor of the Fund.
Prospect Capital Corporation (PSEC) 12.03% Yield (Weight 15%) $8.28
Prospect Capital Corporation is a financial services company. The Company primarily lends to and invests in middle market privately held companies. The Company is a closed-end investment company. Its investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
The Company invests primarily in senior and subordinated debt and equity of private companies in need of capital for acquisitions, divestitures, growth, development, recapitalizations and other purposes.
The Company makes investments, including lending in private equity sponsored transactions, lending directly to companies not owned by private equity firms, control investments in corporate operating companies, control investments in financial companies, investments in structured credit, real estate investments, investments in syndicated debt, aircraft leasing and online lending. The Company is managed by its investment advisor, Prospect Capital Management L.P.
CYS Investments (CYS) 12.90% Yield (weight 15%) $7.71
CYS Investments, Inc. is a specialty finance company. The Company invests in agency residential mortgage-backed security (Agency RMBS) collateralized by fixed rate single-family residential mortgage loans; adjustable-rate mortgages (ARMs), which have coupon rates that reset monthly, or hybrid ARMs, which have a coupon rate that is fixed for an initial period (approximately three, five, seven or 10 years).
In addition, the Company permits investments in collateralized mortgage obligations (CMOs) issued by a Government agency or Government-sponsored entity that are collateralized by Agency RMBS, although it has not invested in any CMOs. In addition to Agency RMBS, the Company invests in the United States Treasuries.
The Company also invests in debt securities issued by the United States Department of the Treasury or a Government-sponsored entity that is not backed by collateral.
Sandridge Permian Trust (PER) 17.57% Yield (Weight 7%) $2.95
This one is the black sheep of our picks and is underweighted for a reason.  It is an oil trust with a dwindling supply of oil.  That being said the stock is beat down from it’s highs of $12 a share a couple years ago with the falling oil prices.  That being said Oil is on an uptick and should climb through 2017 which in our opinion makes this stock a value.  By my estimates there are roughly at $45 oil about $6.50 in dividends left in the stock.   Oil is not at $40 a barrel it is now at $54 a barrel.  The dividend before it started ticking up was .05 and last dividend in November was .134 in 6 months time.  That was before the latest oil cuts by OPEC.  I see the dividend in February being around .17 a share and climbing.  A lot of this will depend on OPEC and if they keep the production numbers agreed upon
I weight this as a 7% stock with good dividend upside as well as some price increase upside especially if oil breaks the $60 a barrel
Sandridge Permian Trust (the Trust) is a statutory trust. The Trust holds Royalty Interests in specified oil and natural gas properties in the Permian Basin located in Andrews County, Texas. The Trust’s business activities are generally limited to owning the Royalty Interests, and entering into hedging arrangements at the inception of the Trust and activities related thereto, including activities required or permitted by the terms of the conveyances related to the Royalty Interests. The Trust’s properties consist of Royalty Interests in the initial wells and over 860 additional wells that are drilled and perforated for completion. The Royalty Interests are in properties located in the greater Fuhrman-Mascho field, a field in Andrews County, Texas that produces oil primarily from the Grayburg/San Andres formation in the Permian Basin. The Permian Basin extends throughout southwestern Texas and southeastern New Mexico over an area approximately 250 miles wide and over 300 miles long.