GGP

Dividend Growth Still A Resilient Theme

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Rising interest rates may pose headwinds to yield-sensitive dividend payers, but we think dividend growth investing remains a resilient theme. We’re big fans of the concept of yield-on-cost, but close attention to valuations, free cash flow generation and balance-sheet health will remain critical. By Brian Nelson CFA We’re big fans of dividend growth investing. Identifying strong businesses that generate considerable free cash flow and have healthy balance sheets to cushion against their growing dividends is one of the key themes of the Dividend Growth Newsletter and its simulated portfolio. The concept of yield-on-cost is a very important one, too, and something that any dividend growth investor should be aware of. Scooping up a dividend-paying company that has a juicy dividend … Read more

Study: Valuentum’s Best Ideas Newsletter Portfolio

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To read the study, please click on the image to download the pdf document (pdf).

Realty Income Occupancy Highest in More Than a Decade

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Image source: Realty Income Simulated Dividend Growth Newsletter portfolio idea Realty Income delivered a solid first quarter 2018 report that included impressive occupancy rates, steady adjusted funds from operations growth, and ongoing dividend expansion. By Kris Rosemann As concerns over what the long-term outlook for retail truly is weigh on many retail REITs, Realty Income (O) is not slowing down. Instead, the company is focused on finding the right tenants in the highest quality spaces, and it may just pay off for the REIT as it ended the first quarter of 2018 with its highest quarter-end occupancy rate in more than ten years at 98.6%. To put some context behind that figure, a mere 75 of its 5,326 properties were … Read more

ICYMI: Valuentum’s Improved Stock and ETF Web Pages

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Valuentum has rolled out improved stock and ETF web pages on its website valuentum.com/. Now, subscribers can access key proprietary information on the stock and ETF web pages in addition to the customary stock and ETF reports. Dear reader, We have some exciting news that we can’t wait to share with you! At valuentum.com/, we have rolled out new stock and ETF pages that conveniently include a variety of our proprietary metrics from the Dividend Cushion ratio to the Economic Castle rating and beyond! There’s even mouseover functionality so you can learn about how we define the key metrics across our stock-selection and dividend growth methodologies. You’ll still have access to the stock and dividend reports on the landing pages, … Read more

The “Luck” and “Randomness” of Index Funds

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Please select the image below to download the document. Image shown, page 1 of 14. Tickerized for Valuentum’s coverage universe.

Video: Quants! You’re NOT Measuring VALUE and Nelson’s Theory of Universal Value

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President of Investment Research Brian Nelson defines the concept of universal value and shows how quantitative statistical methods are inextricably linked to those of fundamental, financial, business-model related analysis. Value does not exist in respective process vacuums! Value is universal. Find out why. Running time: ~10 minutes.  Tickerized for Valuentum’s stock and ETF coverage universe. Transcript Hi this is Brian Nelson from Valuentum Securities, and this is the tenth edition of a series that I call “Off the Cuff,” where I get in front of the camera and I talk for ten minutes. This is what we have to talk about today. We have to talk about this concept: The Theory of Universal Value. Value does not exist in vacuums … Read more

Omega Healthcare and Holly Energy Partners: Case Studies in REIT and MLP Income Evaluation

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An assessment of a REIT’s or MLP’s dividend/distribution strength not only should reflect firm-specific fundamentals, but also external market conditions, which are paramount to the sustainability of most any REIT’s or MLP’s payout. Let’s remind readers of this important dynamic, which is captured via the two different Dividend Cushion ratios, and walk through what goes into the analysis we pursue when making a change with respect to our assessment of a company’s dividend health or safety. By Kris Rosemann and Brian Nelson, CFA Real estate investment trusts (REITs) and master limited partnerships (MLPs) are not your typical operating companies. These business structures have certain provisions that incentivize lofty and growing dividends/distributions, which sounds good, but because these business models tend … Read more

Realty Income Has Avoided Much of the Trouble in Retail

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Image Source: Realty Income Realty Income’s dividend track record largely speaks for itself, and the REIT may be one of the most attractive in its peer universe. With a focus on some of the strongest retail tenants, it has largely avoided most of the trouble in retail, too. The REIT recently declared its 566th consecutive common stock monthly dividend. By Brian Nelson, CFA Those that don’t know Realty Income (O) should get to know it. The real estate investment trust (REIT) isn’t called the ‘Monthly Dividend Company’ for no reason. Its dividend growth track record is simply a sight to see (1), and the company’s dividend yield is still relatively attractive at ~4.6%, better than the that of the average … Read more

Valuentum’s 3 Breakthroughs in the Field of Finance and More

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Valuentum’s President Brian Nelson pauses for a picture before speaking at the CFA Society of Houston in March 2017. By Valuentum Editorial Staff Let’s cover Valuentum’s 3 major breakthroughs in the field of finance. The first one is big and may challenge you to rethink everything you think you know about investing. 1. On a logical framework, Valuentum has debunked John C. Bogle’s landmark syllogism that has paved the way for the concept of index investing. Index investing has been built on a logical shortcoming, whether supported by evidence or not. We think it is important that the investment community know of this. Read (pdf): The “Luck” and “Randomness” of Index Funds (2018), Brian Nelson, CFA See video documentation: /FALLACY_of_Index_Funds To … Read more

Podcast: REITs, Interest Rates and Beyond!

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The Valuentum analyst team talks REITs and the reasons why REIT investors should pay close attention to changes in Treasury rates. Various secular themes across the data center, healthcare, office, and mall REITs are discussed, and an explanation for the sector’s systematically poor raw, unadjusted Dividend Cushion ratios is covered. ~8 mins. Tickerized for various ETFs and the holdings in the VNQ. Brian Nelson, CFA: In September, REITs were officially broken out from the financial sector to their own sector of the S&P 500 — some 30 or so stocks with $600 billion in market capitalization, or about 3% of the S&P 500. Could this change have marked a peak in performance for equity and mortgage REIT stocks? Are investors … Read more