OHI

October Dividend Growth Newsletter Introduction

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Dear Member, The month of September represented some tough sledding for the markets, and we think things will get worse before they get better. If you missed our write up on the seven reasons why we think we’re due for a fall, please be sure to catch up on the piece here. We made a number of changes to the Dividend Growth portfolio since the release of the previous edition of the newsletter. Let’s make sure you didn’t miss anything. For one, yesterday, we added S&P 500 SPDR put option contracts to the portfolio to protect the large gains. Specifically, we added protection in the form of 5 put option contracts on the S&P 500 (SPY), with November 22 expiration … Read more

What Is Fat Pitch Investing?

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“I call investing the greatest business in the world … because you never have to swing. You stand at the plate, the pitcher throws you General Motors at 47! U.S. Steel at 39! and nobody calls a strike on you. There’s no penalty except opportunity lost. All day you wait for the pitch you like; then when the fielders are asleep, you step up and hit it.” —Warren Buffett, Interview in Forbes magazine (1 November 1974) “The stock market is a no-called-strike game. You don’t have to swing at everything — you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling, ‘Swing, you bum!’” –Warren Buffett, 1999 Berkshire Hathaway Annual Meeting, … Read more

Dividend Increases for the Week Ending July 18

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Below we provide a list of firms that raised their dividends during the week ending July 18. 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 Bassett Furniture (BSET): now $0.08 per share quarterly dividend, was $0.06. CIT Group (CIT): now $0.15 per share quarterly dividend, was $0.10. Education Realty Trust (EDR): now $0.12 per share quarterly dividend, was $0.11. Fidelity Southern (LION): now $0.09 per share quarterly dividend, was $0.08. Goodyear (GT): now $0.06 per share quarterly dividend, was $0.05. Greene County Bancorp (GCBC): now $0.18 per share quarterly dividend, was … Read more

Valuentum Economic Castleâ„¢ Rating Update

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Read: Keeping the Horse Before the Cart: Valuentum’s Economic Castle™ Rating The Economic Castle Focuses on the Magnitude of Economic Value Creation The Valuentum Economic Castle™ rating is an enhancement of the competitive advantage framework (commonly known as economic moat analysis) that has become widespread and ubiquitous within the investing world. Whereas an economic moat framework evaluates a firm on the basis of the sustainability and durability of its competitive advantages, Valuentum’s Economic Castle™ rating evaluates a firm on the basis of the firm’s future economic profit spread (return on invested capital less its weighted average cost of capital). The companies with the strongest Valuentum Economic Castle™ ratings are poised to generate the most economic value for shareholders in the … Read more

Realty Income: Portfolio Risks Are Exaggerated

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Realty Income (O), the ‘Monthly Dividend Company’ is our top choice for income exposure to the real estate investment trust (REIT) industry. Though the REIT may not have the allure of healthcare REITs such as Health Care REIT (HCN) or Omega Healthcare (OHI), which are benefiting from aging-demographic tailwinds, or Digital Realty Trust (DLR), which is tied to data-center proliferation and boasts Facebook (FB) as a top-10 customer, we think many investors are growing more and more cautious on Realty Income’s retail exposure, and it is partly because of this reason that we think an opportunity in shares exists. Said differently, investors aren’t giving Realty Income a fair shake, and we think its retail portfolio risks are exaggerated. First, however, … Read more

Realty Income Still One of Our Favorite Dividend-Focused REITs

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On February 13, the real estate investment trust (REIT) that has a 45-year track record of providing dependable monthly income from real estate reported solid operating results for the fourth quarter of 2013. The ‘Monthly Dividend Company’ has paid an impressive 522 dividends and registered an enviable 74 total dividend increases since 1994. Though we note that the past is only as important as it informs the future, we think the future remains bright for Realty Income. Image Source: Realty Income  The Dividend Growth portfolio holding’s revenue and adjusted funds from operations (AFFO) were both impacted by acquisitive activity (its purchase of American Realty Capital Trust in January 2013), advancing significantly from the same period a year ago. We were … Read more

Three Reasons Why Dividend Growth Investors Are Quite Savvy

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A version of this article appeared on our website on October 1, 2013. There are many different approaches to investing, but we think dividend growth investors are quite savvy, especially when they combine a rigorous dividend growth process in the form of the Valuentum Dividend Cushion ratio with the valuation rigors behind the Valuentum Buying Index. Let’s examine the three reasons why we think dividend growth investors are a smart group in the age of ultra-low interest rates. #1. Fool Me Once, Shame on You…Fool Me Twice, Shame on Me Today’s dividend growth crowd has seen enough. First, they witnessed the dot-com bubble (1997-2000), a period in stock market history where firms’ stock prices soared in some cases as a result … Read more

Surveying 3Q Performance at the Healthcare REITs

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HCP Will Remain on the Dividend Aristocrat List for Some Time to Come HCP (HCP)—4.9% annual yield—a fully-integrated REIT serving the healthcare industry, reported third-quarter results October 29. Funds from operations (FFO) advanced 9% to $0.73, while FFO as adjusted per share increased 14%, to $0.79. Funds available for distribution (FAD) jumped an impressive 22% in the period, to $0.67. The company achieved cash same-property-portfolio net operating income growth of 3.7% for the period, an acceleration from the nine-month pace of 2.8%. HCP raised its full-year guidance for FFO as adjusted to the range of $2.97-$3.03 per share, representing a growth rate of 8% based on the midpoint over 2012 FFO as adjusted per share. The REIT also raised its … Read more

Firms Raising Their Dividend In the Week Ending July 19 Included Kinder Morgan and Omega Healthcare

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Below we provide a list of firms that increased/decreased their dividends for the week ending July 19. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports, please click here. Increases Amphenol (APH): now $0.20 per share quarterly dividend, was $0.105. Bassett Furniture (BSET): now $0.06 per share quarterly dividend, was $0.05. CARBO Ceramics (CRR): now $0.30 per share quarterly dividend, was $0.27. Education Realty (EDR): now $0.11 per share quarterly dividend, was $0.10. El Paso Pipeline Partners (EPB): now 0.63 per share quarterly distribution, was $0.62. First Community Corporation (FCCO): now $0.06 per share quarterly dividend, was $0.05. Home Loan Servicing Solutions (HLSS) declares quarterly dividend of $0.15 per … Read more