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Recent Articles
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Life Storage Operates Within An Attractive Slice of the REIT Sector
Nov 4, 2022
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Image Source: Life Storage.
Life Storage operates in one of the most attractive areas of the REIT sector, the self-storage arena. The company has raised its dividend considerably during the past five years, and its 35-year history in the self-storage business coupled with its investment-grade credit ratings speak to sustainability. We like its diversified, coast-to-coast presence in the U.S. with roughly 60% of its owned stores positioned in the fast-growing Sun Belt states. Since 2010, Life Storage has raised its dividend at a 10.4% compound annual growth rate, and we expect further hikes to come. Shares yield ~4.2% at this time.
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Dividend Increases/Decreases for the Week of November 4
Nov 4, 2022
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Let's take a look at firms raising/lowering their dividends this week.
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Realty Income: An Outperformer in 2022
Nov 3, 2022
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Image Source: Realty Income.
We continue to be impressed with Realty Income’s ability to keep raising its dividend payout, and while REIT economics have deteriorated in 2022, the company is doing much better than peers. We’re not fans of the capital-market dependence risk of REITs, in general, and Realty Income holds a rather elevated net debt to annualized pro forma adjusted EBITAre ratio of 5.2x, but we’re sticking with the company as an idea in the simulated Dividend Growth Newsletter portfolio at this time. The company has raised its dividend 117 times since it was listed on the New York Stock Exchange in 1994.
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ALERT: Replacing Qualcomm with McDonald’s in Dividend Growth Newsletter Portfolio
Nov 3, 2022
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Image: The semiconductor space is experiencing a number of headwinds, and while we still like Qualcomm’s long-term prospects, we’re replacing it with McDonald’s in the simulated Dividend Growth Newsletter portfolio. Image Source: Qualcomm.
We’re huge fans of Qualcomm’s business model over the long haul, but risks continue to add up. First, the adjustment in the pace of Qualcomm’s expectations for handset volumes for calendar 2022 is rather concerning, given the delta from its commentary in July and over a period of what is only a couple months remaining this year. In light of U.S.-China geopolitical tensions, new export restrictions on chip technology to China (announced October 7) that are further complicating industry matters, and Qualcomm customers retrenching by drawing down on their inventory, we’re going to remove the small “position” in Qualcomm in the simulated Dividend Growth Newsletter portfolio. McDonald’s will be taking its place in the portfolio. This change will be reflected in the next edition of the Dividend Growth Newsletter.
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