Valuentum Exclusive Analysis for the Discerning Investor

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Nov 17, 2023

REITs Will Likely Continue To Underperform
Image: REITs have not performed as well as some may have thought. This article clearly explains that REIT dividends are risky and showcases that REIT investors have missed out on a lot of total return during the past decade or so. One has to go back a long time to see any real return from REITs, and changing working and shopping habits will likely continue to punish the broader REIT sector. We view REITs as a game of financial leverage tied to the vicissitudes of the commercial real estate cycle, all for a dividend yield that approximates that of risk-free assets these days. REITs seem to have a large following these days and many will come to the defense of REITs in their own way, but from a bird's eye view of this market, we remain puzzled by the love affair some have for them. We can only posit that some have a myopic focus on REIT-specific metrics, are not getting the best information when it comes to capital-market dependence risk, and perhaps don't truly understand the structural dynamics of the dividend payment with respect to the free dividends fallacy (i.e. that a REIT's share price is adjusted downward by the amount of the dividend on the ex-dividend date). In our view, the structural dynamics that have hurt REITs for the past decade won't be going away anytime soon, and for investors looking to maximize their returns and the longevity of their retirement savings, there are much better options than REITs.

Jun 2, 2015

Medtronic On Track with Covidien Integration
We liked Medtronic before its acquisition of Covidien, and we continue to like the company now.

Nov 18, 2014

Medtronic Surpasses $70 Per Share
The Dividend Growth portfolio holding continues to defy gravity.

Sep 22, 2014

Dividend Increases/Decreases for the Week Ending September 19
Let's take a look at dividend increases/decreases for the week ending September 19.

Aug 26, 2014

Price Is Almost Always Different Than Value
This key tenet behind stock market investing success is worth remembering.

Jun 22, 2014

Valuentum Economic Castle™ Rating Update
Members should expect the initial Economic Castle™ ratings.

Jun 17, 2014

Firms Leaving United States for More Reasonable Tax Rates Elsewhere
Medtronic is the latest firm to pursue tax inversion via its tie-up with Covidien. Importantly, however, the firm renewed its commitment to dividend growth shareholders, hiking the payout 9%.

Jan 27, 2014

Surveying Fourth Quarter Earnings at Health Care Firms
Though it may be difficult to focus on underlying equity fundamentals in the face of a volatile overall market environment, we think doing so is even more important under such circumstances. Let’s examine our thoughts on fourth-quarter earnings season in the health care space .

Sep 20, 2013

Dividend Increases/Decreases for the Week Ending September 20
Let's take a look at dividend increases/decreases for the week ending September 20.

Sep 14, 2012

Covidien Will Continue to Drive Solid Shareholder Returns
Covidien provided strong fiscal year 2013 guidance, and the firm continues to return cash to shareholders at a healthy clip.