PMT

Dividend Increases/Decreases for the Week Ending September 25

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Below we provide a list of firms that raised/lowered their dividends during the week ending September 25. 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 Accenture (ACN): now $1.10 per share semi-annual dividend, was $1.02. AltaGas (ATGFF): now C$0.165 per share monthly dividend, was C$0.16. FNB Bancorp (FNBG): now $0.15 per share quarterly dividend, was $0.13. Hingham Institution for Savings (HIFS): now $0.30 per share quarterly dividend, was $0.28. Lockheed Martin (LMT): now $1.65 per share quarterly dividend, was $1.50. Masco (MAS): now $0.095 per share quarterly dividend, was $0.09. New … Read more

American Capital Agency’s Book Value Declines…Again

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The success of mortgage REITs in the past has largely been the result of an unhedged (unprotected) portfolio completely exposed to the vicissitudes of interest rates. Mortgage market dynamics are inherently difficult to predict, and most mortgage REITs can only bolster economic returns as measured through gross ROEs via adding additional leverage. Spread income has always been a less-material driver to book value than other comprehensive losses, or when unrealized losses on a mortgage REIT’s investments are marked to market. Very few analysts have the ability to effectively analyze these complex instruments, and while we’ve been correct about the risks related to their investment opportunities, we continue to believe it is borderline irresponsible for financial advisors to be using mortgage … Read more

Dividend Increases/Decreases for the Week Ending September 19

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Below we provide a list of firms that raised/lowered their dividends during the week ending September 19. 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 Apollo Residential Mortgage (AMTG): now $0.44 per share quarterly dividend, was $0.42. Artesian Resources (ARTNA): now $0.2151 per share quarterly dividend, was $0.2119. Atlantic Tele-Network (ATNI): now $0.29 per share quarterly dividend, was $0.27. Blackstone Mortgage (BXMT): now $0.50 per share quarterly dividend, was $0.48. Covanta (CVA): now $0.25 per share quarterly dividend, was $0.18. Covidien (COV): now $0.36 per share quarterly dividend, was $0.32. Elmer … 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 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

Valuentum Members Are Reminded of the mREITs

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“I am the advisor you referenced in the July newsletter who sold AGNC. Your timely article made me re-look at all of the mReits we owned, and we sold off nearly all of them over the following month after your article. I just calculated where we sold (because of your article) compared to where the mReits are today. Your article, which influenced the selling saved our clients over $1.1 million in equity price drops. That translates into $11,000 per year of fee income to the firm. You can bet that we will be re-subscribing when the time comes. Thank you for your hard work, and bringing additional value that was not owed or expected.” — Tim A. (source: Valuentum testimonials), … Read more

American Capital Agency Disappoints Again; Armour Residential Follows

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We’re still getting praises from our call on the mREIT industry that shocked the investment world and literally put our research firm on the map (click here for that). We outlined how other research firms were so wrong in this piece (link), and interestingly, we’re adding BAML today to the list of investment shops that led their advisor communities astray. Frankly, we’re honored to serve you, and we’re proud to have delivered on the correct research perspective. We’re not here to point out the pitfalls of others, but by pointing out this well-documented example, our goal is to continue to build your trust in us as a firm. Let’s take a look at the ongoing troubles the mREIT industry continues … Read more

American Capital Agency Loses $2.37 Per Share in Second Quarter

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As we have encouraged readers since the peak in September 2012, the mortgage real estate investment trust (REIT) industry has myriad risks, and the marketing pitches indicating that their principal and interest payments are guaranteed by a US government sponsored entity (GSE) should not make investors feel safe. This dynamic has little bearing on the underlying trajectory of fundamentals and a mortgage REIT’s book value, the key valuation driver and the major impetus behind share price movements in the space. During the second quarter (results released Monday), American Capital Agency (AGNC) failed at its principal objective to preserve net asset value, as book value plunged to $25.51 per share from $28.93 per share in the previous sequential quarter (a $3.42 move). … Read more

The Mortgage REIT Business Doesn’t Work…

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Key Takeaways: ·         The good times are over for mortgage REITs. o       Mortgage market dynamics are inherently difficult to predict. o       A flatter yield curve has negatively impacted net interest rate spread income across the entire mortgage REIT universe. We’re already seeing deteriorating gross ROE’s from some of the largest industry constituents. o       The Fed has only caused a marginal tightening in mortgage spreads, and in our view, a marginal widening due to reduced Fed activity (if/when it happens) is perhaps the best-case scenario as it relates to spread income for the group. A continuation of spread tightening is likely the base-case scenario, which is negative for the group. o       Net interest rate spread income and gross ROE’s will only be materially enhanced … Read more

Stock Market Outlook for 2021

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By Valuentum Analysts February 8, 2021 2020 was one for the history books. We covered our thoughts and reflections on the past year in our “2020 Won’t Soon Be Forgotten” article (link here), and now we are looking towards the future. Global health authorities should be able to bring an end to the ongoing coronavirus (‘COVID-19’) pandemic sooner than many had expected as several vaccines have already been improved for emergency use and several others appear increasingly likely to get approved. Global vaccine distribution activities are currently underway, and this should allow the world to slowly return to pre-pandemic activities. Before then, immense stimulus measures launched primarily in developed nations should support global economic activities until the public health crisis … Read more