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Are you ready to discover the #1 strategy used to collect the largest dividend payments?
July 28 is the deadline to receive the next large dividend payment. You won’t want to miss it. Click here for immediate access.
The darknet web refers to internet portals accessible only to the select few: those possessing hidden knowledge and cryptic connective software. These portals are unknown and inaccessible to most web surfers.
A similar darknet of dividend-paying stocks pervades the investing world.
These dividends are known only to the select few: investors with hidden knowledge and cryptic connective sources. Darknet dividends go undetected and unclaimed by most investors.
HFF Inc. (NYSE: HF), a commercial real estate and capital market services company, offers a ready example.
HFF declared a $1.57-per-share dividend in January 2017. The year before, it declared a $1.80-per-share dividend. Both dividends passed most income investors undetected because they passed most major financial portals undetected.
HFF’s dividend passed most investors, but not all. I continually trawl the internet for darknet dividend payers. I captured HFF’s darknet dividend in my dragnet.
HFF’s dividend produced a 5.3% yield based on its $29.60 share price when it was declared in January. I liked HFF’s dividend. It offered not only a high yield, it offered a profitable trade opportunity.
HFF’s previous darknet dividends were always high yield. More important, they always foreshadowed a higher share price.
I was sure the latest dividend was no different.
Shareholder Value and the Special Dividend
Gauging management’s objectives to create shareholder value, I was confident that latest HFF dividend would produce another profitable trade. HFF’s management reiterated three objectives relative to managing the company’s cash position when it declared its latest dividend:
- Maintain sufficient cash reserves to grow the business.
- Maintain sufficient working capital to operate the platform commensurate with “best in class” investment returns.
- Maintain sufficient cash reserves to not only survive a downturn, such as during 2008 and 2009, but to thrive afterward.
The objectives weren’t new, but HFF’s management had repeatedly followed through on all three objectives.
Annual revenue had grown to $530 million from $285 million in 2012. EPS over the same period had grown to $2.16 from $1.18.
EPS growth outpacing revenue growth is frequently the result of intelligent growth. HFF management had grown the company intelligently by maintaining high returns on invested capital.
HFF was producing 35% returns on equity and 8% returns on assets in 2012. By the start of 2017, return on equity had been pushed to 44% returns. Return on assets had risen 11%.
Continually returning excess cash to shareholders is a powerful factor in maintaining an upward trend in returns on equity and assets. Excess cash drags on investment returns. HFF management has proven its vigilance to continually remove that drag.
Each previous special dividend had coincided with a rise in annual revenue, earnings, and returns on invested capital. Each special dividend had also coincided with a general rise in HFF’s share price. If past is prologue, and I believed it was with HFF, the same dynamic would repeat.
I saw the ability to collect a one-time high-yield dividend payment. I also saw an opportunity to trade HFF for a quick profit.
Both events came to pass.
Dividend Plus Holding-Period Return
Investors who followed my instructions for trading HFF shares were able to collect a high-yield dividend and generate a 16.7% holding-period return on their investment. The holding period was less than three weeks. These same investors generated a 116.5% equivalent-annualized return.
HFF is one of many of these darknet dividend stocks I’ve advised investors to exploit over the past year. Now it’s your turn.
Discover how to collect huge darknet dividends and trade the stocks that pay these huge special dividends. July 28 is the deadline for the next payment, and it’s fast approaching. Click here now so you don’t miss this unique opportunity to exploit an opportunity so few investors know exist.