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.

Nov 10, 2019

Member Question: Reaves Utility Income Fund
Image Source: Reaves Utility Income Fund, April 30. Question: Have you ever looked at Reaves Utility Income Fund (UTG)? The fund is a utility fund that uses a little bit (20%) of leverage. I have owned them for a long time and have made a good return, but I wonder going forward if I should keep them in my portfolio? Utilities are popular right now, but popularity worries me.

Jun 21, 2019

Dividend Increases/Decreases for the Week Ending June 21
Let's take a look at companies that raised/lowered their dividend this week.

Mar 16, 2018

Dividend Increases/Decreases for the Week Ending March 16
Let's take a look at companies that raised/lowered their dividend this week.

Oct 10, 2016

Dividend Increases/Decreases for the Week Ending October 7
Let's take a look at companies raising/lowering their dividends this week.

Dec 22, 2014

Dividend Increases for the Week Ending December 19
Let's take a look at dividend increases for the week ending December 19.

Dec 20, 2013

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