Valuentum Exclusive Analysis for the Discerning Investor

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Oct 13, 2021

High-Yield Idea CyrusOne Considers Selling Itself
Image Shown: Shares of CyrusOne, an idea included in our High Yield Dividend Newsletter portfolio, are on a modest upward climb of late. The data center real estate investment trust (‘REIT’) is reportedly considering putting itself up for sale, though we like the REIT’s income generation upside regardless of whether a sale does materialize as its outlook continues to improve after posting stellar performance during the first half of 2021. Reportedly, CyrusOne is actively exploring a potential sale according to Reuters. We include shares of CONE as an idea in the High Yield Dividend Newsletter portfolio. The data center real estate investment trust (‘REIT’) has experienced significant turnover in its top ranks over the past couple of years which we will cover briefly, as that likely set the stage for the potential sale. Should CyrusOne decide not to sell itself, we would still be fans of its business model, growth runway, improving outlook, and income generation potential. Let's dig into latest developments in this article.

Sep 9, 2021

Digital Realty Is a Stellar Income Growth Idea
Image Source: Digital Realty Trust Inc – September 2021 IR Presentation. Digital Realty Trust is a carrier-neutral data center real estate investment trust (‘REIT’) that provides co-location and interconnection services. The REIT has grown its annual dividend over the past 15+ consecutive years, and we view Digital Realty as a stellar income-generation idea. As of this writing, shares of DLR yield ~2.8%. We include shares of DLR as an idea in both the Dividend Growth Newsletter and High Yield Dividend Newsletter portfolios. Investors have been steadily warming up to Digital Realty this year, with shares of DLR up ~23% year-to-date, and we see room for additional upside as the top end of our fair value estimate range sits at $186 per share of Digital Realty.

Aug 27, 2021

Dividend Increases/Decreases for the Week August 27
Let's take a look at companies that raised/lowered their dividend this week.

Aug 15, 2021

Dividend Growth Idea Realty Income Is on the Rebound
Image Source: Realty Income Corporation – August 2021 IR Presentation. Realty Income, “The Monthly Dividend Company,” has paid out a dividend over the past 610+ consecutive months and shares of O yield a nice ~4.0% as of this writing. We are big fans of its pending merger with VEREIT and its international expansion plans as these endeavors will significantly improve both Realty Income’s growth runway and the resilience of its business model going forward. We continue to like Realty Income as an idea in the Dividend Growth Newsletter portfolio and appreciate the REIT’s latest guidance boost. On a final note, we are keeping an eye on its pending merger with VEREIT.

Aug 9, 2021

High Yielding Idea CyrusOne Beats Estimates and Raises Guidance
Image Source: CyrusOne Inc – Second Quarter of 2021 IR Earnings Presentation. The data center and colocation service provider CyrusOne is a real estate investment trust (‘REIT’) that is included as an idea in the High Yield Dividend Newsletter portfolio. CyrusOne reported second quarter 2021 earnings July 28 that beat both consensus top- and bottom-line estimates, and CyrusOne also increased its full-year guidance in conjunction with its latest earnings update. We liked what we saw in CyrusOne’s latest earnings report.

Aug 7, 2021

Two High-Quality Self-Storage REITs Beat Estimates and Raise Guidance
Image Shown: Shares of CubeSmart (depicted by the blue line) and Public Storage (depicted by the orange line), two self-storage REITs that are included as ideas in the High Yield Dividend Newsletter portfolio, have surged higher year-to-date. We are big fans of the self-storage real estate investment trust (‘REIT’) industry, particularly in the US. These REITs offer their customers an economical way to maximize their living space at a time when domestic housing prices are surging from a baseline that is already quite high. Additionally, self-storage REITs are well-positioned to push through continuous rent increases given that the monthly rental expense for a self-storage unit for an ordinary US household likely represents just a sliver of their monthly budget, as compared to a monthly rental expense for a primary home or the monthly food budget, etc. Our favorite two names in the space are CubeSmart (CUBE) and Public Storage (PSA).

Jun 11, 2021

CubeSmart Outperforms and Boosts Its Full-Year Guidance
Image Source: CubeSmart – June 2021 IR Presentation. We continue to be huge fans of CubeSmart and like the self-storage REIT as an idea in the High Yield Dividend Newsletter portfolio. A greater percentage of US households have been turning to self-storage offerings over the past several decades in order to maximize their living space in an economical manner according to data cited by Public Storage (another idea included in the High Yield Dividend Newsletter portfolio) and Extra Space Storage. Secular tailwinds support CubeSmart’s promising growth outlook. Shares of CUBE are up 38% year-to-date as of the end of normal trading hours on June 10, easily outpacing the 12% gain seen in the S&P 500 during this period before taking dividend considerations into account. As of this writing, shares of CUBE yield ~2.9%.

Apr 8, 2021

The Best Years Are Ahead
The wind is at our backs. The Federal Reserve, Treasury, and regulatory bodies of the U.S. may have no choice but to keep U.S. markets moving higher. The likelihood of the S&P 500 reaching 2,000 ever again seems remote, and I would not be surprised to see 5,000 on the S&P 500 before we see 2,500-3,000, if the latter may be in the cards. The S&P 500 is trading at ~4,100 at the time of this writing. The high end of our fair value range on the S&P 500 remains just shy of 4,000, but I foresee a massive shift in long-term capital out of traditional bonds into equities this decade (and markets to remain overpriced for some time). Bond yields are paltry and will likely stay that way for some time, requiring advisors to rethink their asset mixes. The stock market looks to be the place to be long term, as it has always been. With all the tools at the disposal of government officials, economic collapse (as in the Great Depression) may no longer be even a minor probability in the decades to come--unlike in the past with the capitalistic mindset that governed the Federal Reserve before the “Lehman collapse."

Feb 25, 2021

Public Storage’s Traditional Free Cash Flow Coverage of the Dividend Is Unique for a REIT
Image Source: Mike Mozart. In light of Public Storage’s core FFO coverage of the payout and its traditional free cash flow coverage of the payout, we think its dividend is about as healthy as any REIT’s gets. Public Storage is also one of the highest-rated REITs by the credit rating agencies, with Standard & Poor’s and Moody’s assigning an A credit rating and A2 credit rating on its senior debt, respectively. Shares yield ~3.3%, and we continue to like exposure to this rock-solid dividend-paying REIT in the High Yield Dividend Newsletter portfolio.

Feb 19, 2021

Dividend Increases/Decreases for the Week February 19
Let's take a look at companies that raised/lowered their dividend this week.