| I'm a fan of bonds too, though think yields will go a bit higher from here. A 12x AFFO multiple is not lower return than a 5% yielding (20x multiple) US treasury bond though. The treasury bond coupon is safer, but more exposed to inflation risks. I'm not sure what BOXX is, but a quick look showed they hold options against SPY, so sounds like an options selling strategy for income. These work alright too, though your income will grow/decline along with the price of the underlying. And you should check again revenue growth for COST or a stock like AAPL, which is projected to have -5% revenue growth over the year. A 50x earnings multiple implies 2% yield today. Even if Costco doubles their revenue, at the same margins their earnings yield would only be 4%. So say they grow it 3x, they now have an earnings yield of 6%. So in 15-20 years when they've 3x their revenue, you're entitled to a 6% yield on your original investment at 100% payout ratio. To be a remotely good investment on a fundamental basis, they must either carry a lower multiple, or expand their margins over time. Given that Costco's whole premise is being a discount retailer, expanding margins is unlikely. Please don't participate in an investing conversation if you don't have anything data driven to contribute. |