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.

Apr 14, 2015

Dividend Increases/Decreases for the Week Ending April 10
Please find a list of companies raising or lowering dividends during the week.

Jun 22, 2014

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

May 4, 2014

Dividend Increases for the Week Ending May 2
Let's take a look at dividend increases for the week ending May 2.

Oct 18, 2013

PPG Posts Record Third Quarter Results; Our Favorite Idea in the Chemicals Industry
Let’s examine PPG’s third-quarter performance. This chemicals firm is one for the radar.

Aug 14, 2013

Chemical Firms Continue to Worry About Economy; PPG Industries, Ecolab, and Eastman Chemical Stand Out in Second Quarter
Second-quarter performance from firms in the chemicals (broad) industry wasn’t great, and many expressed concerns about the economy going forward. Still, PPG Industries, Ecolab, and Eastman Chemical stood out as the top fundamental performers.