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Why Are the Dividends of REITs So Risky?

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By Brian Nelson, CFA Not all REIT dividends are safe. Many REITs remain capital-market dependent, and some office REITs, retail REITs, and healthcare REITs may be difficult places to generate dependable long-term income in the coming decades, in our view. Office REIT SL Green (SLG) recently cut its payout 13% on December 5, 2022, while another office REIT Vornado Realty Trust (VNO) cut its dividend 29% on January 18, 2023. These are just two of the latest high-profile REIT dividend cuts, and there may be more to come. Contrary to popular opinion, the REIT sector has not been a great source of dependable, reliable income, particularly during the COVID-19 crisis. Five REITs cut their dividends in 2019: Medalist Diversified REIT … Read more

REITs May Continue to Face Pressure

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Image: The Dividend Cushion ratio is one of the most powerful financial tools an income or dividend growth investor can use in conjunction with qualitative dividend analysis. The ratio is one-of-a-kind in that it is both free-cash-flow based and forward looking. Since its creation in 2012, the Dividend Cushion ratio has forewarned readers of approximately 50 dividend cuts. We estimate its efficacy at ~90%. By Brian Nelson, CFA Times are tough for equity REITs (VNQ) and mortgage REITs (REM), with the VNQ and REM down 25% and 30%, respectively, so far in 2022. This is against a backdrop of Valuentum’s simulated Dividend Growth Newsletter portfolio and High Yield Dividend Newsletter portfolio that are doing far better. The lesson in 2022, … Read more

Dividend Increases/Decreases for the Week of October 14

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Below we provide a list of firms that raised their dividends during the week ending October 14. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                A.O. Smith (AOS): now $0.30 per share quarterly dividend, was $0.28. Agree Realty (ADC): now $0.24 per share monthly dividend, was $0.23. Albertsons Companies (ACI): now $6.85 per share special dividend, was $0.12. Avient (AVNT): now $0.2475 per share quarterly dividend, was $0.2375. BioSyent (RX:CA): now CAD 0.04 per share quarterly dividend. Cardinal Energy Ltd. (CJ:CA): now CAD 0.06 per share monthly dividend, was CAD … Read more

High-Yielding Digital Realty Is Committed to Rewarding Income Seeking Investors

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Image Shown: Digital Realty Trust Inc continues to secure new leases which supports its growth outlook. Image Source: Digital Realty Trust Inc – Second Quarter of 2022 Earnings Press Release By Callum Turcan Data center real estate investment trusts (‘REITs’) are a great source of income with ample growth opportunities given the secular tailwinds underpinning data demand growth. The proliferation of cloud computing, the Internet of Things (‘IoT’) trend, the rise of autonomous automobiles, households that previously did not have access to the Internet gaining access (particularly in sub-Saharan Africa and South Asian), the rollout of 5G wireless services, and other factors are all driving up data demand around the world. In turn, that makes it easier for data center … Read more

Dividend Increases/Decreases for the Week April 15

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Below we provide a list of firms that raised their dividends during the week ending April 15. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week      Agree Realty (ADC): now $0.234 per share monthly dividend, was $0.227. Aon (AON): now $0.56 per share quarterly dividend, was $0.51. Artesian Resources (ARTNA): now $0.2729 per share quarterly dividend, was $0.2675. BrasilAgro – Brazilian Agricultural Real Estate (LND): now $0.404 per share dividend, was $0.2030. Costco (COST): now $0.90 per share quarterly dividend, was $0.79. Crestwood Equity (CEQP): now $0.655 per share quarterly dividend, was … Read more

Dividend Increases/Decreases for the Week October 15

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Below we provide a list of firms that raised their dividends during the week ending October 15. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week A.O. Smith (AOS): now $0.28 per share quarterly dividend, was $0.26. Agree Realty (ADC): now $0.227 per share monthly dividend, was $0.217. Alcoa (AA): now $0.10 per share quarterly dividend, was $0.09. Avient (AVNT): now $0.2375 per share quarterly dividend, was $0.2125. Cadence Bancorporation (CADE): now $1.25 per share special dividend, was $0.158. Codorus Valley (CVLY): now $0.15 per share quarterly dividend, was $0.13. Commercial Metals … Read more

Dividend Increases/Decreases for the Week July 16

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Below we provide a list of firms that raised their dividends during the week ending July 16. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Agree Realty (ADC): now $0.217 per share monthly dividend, was $0.200. Ally Financial (ALLY): now $0.25 per share quarterly dividend, was $0.19. American Financial (AFG): now $2.00 per share special dividend, was $0.50. Bank of America Corporation Deposit Shs Perp Pfd Shs Series E (BAC.PE): now $0.2556 per share quarterly dividend, was $0.2472. Bank of New York Mellon (BK): now $0.34 per share quarterly dividend, was … Read more

Dividend Increases/Decreases for the Week April 16

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Below we provide a list of firms that raised their dividends during the week ending April 16. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Agree Realty (ADC): now $0.217 per share monthly dividend, was $0.207. Aon (AON): now $0.51 per share quarterly dividend, was $0.46. AptarGroup (ATR): now $0.38 per share quarterly dividend, was $0.36. Artesian Resources (ARTNA): now $0.261 per share quarterly dividend, was $0.257. Banco Santander-Chile (BSAC): now $0.9285 per share annual dividend, was $0.4651. Cadence Bancorporation (CADE): now $1.25 per share special dividend, was $0.15. Costco (COST): … Read more

ICYMI: Valuentum’s Brian Nelson on the Latest Howard Marks’ Memo: “Something of Value”

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Valuentum’s President of Investment Research Brian Michael Nelson, CFA, explains why there are not really value and growth stocks, why most of the research in quantitative finance is spurious and needs to be redefined on a forward-looking basis, and why enterprise valuation (not the efficient markets hypothesis) should be the organizing principle of finance. Nelson explains his views about valuation, what it means to be a value investor, and investing in the context of Oaktree Capital Howard Marks’ latest memo, “Something of Value,” January 11, 2021. Please don’t forget to give the second edition of the book “Value Trap” a 5-star rating on Amazon here. Thank you for your membership! —– Tickerized for holdings in the IWM. Valuentum members have … Read more

Dividend Increases/Decreases for the Week January 15

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Below we provide a list of firms that raised their dividends during the week ending January 15. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Agree Realty Corporation (ADC): now $0.207 per share monthly dividend, was $0.195. Algoma Central (AGMJF): now CAD 0.17 per share quarterly dividend, was CAD 0.13. Allied Properties Real Estate Investment Trust (APYRF): now CAD 0.1417 per share monthly dividend, was CAD 0.1375. Alpine Banks of Colorado (ALPIB): now $24.00 per share quarterly dividend, was $18.00. Apogee (APOG): now $0.20 per share quarterly dividend, was $0.1875. Atco … Read more