PSB

High Yield Dividend Income Investing Is Not as Easy as Chasing the Highest Yield

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Dear members: — The skills to successfully invest for long-term capital gains or long-term dividend growth are much different than those required for generating high yield dividend income. Income investing is a much different proposition. However, the skills do center on a similar equity evaluation process, but one that requires an acknowledgement and heightened awareness of considerably greater downside risks. Income investing, or high yield dividend income investing, should at times be considered among the riskiest forms of investing, as many high dividend-yielding securities tend to trade closer to the characteristics of junk-rated bonds than they do most net cash rich and free cash flow generating powerhouses that we like so much in the Best Ideas Newsletter portfolio (1) and Dividend Growth … Read more

High-Yielding Life Storage Is One of Our Favorite Self-Storage REITs

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Image Source: Life Storage Inc – First Quarter of 2022 Earnings Press Release By Callum Turcan We are big fans of the self-storage industry as real estate investment trusts (‘REITs’) operating in this space have historically generated “excess” free cash flows after covering their total dividend obligations. Life Storage Inc (LSI), a self-storage REIT, is one of our favorite income generation ideas. As of this writing, shares of LSI yield ~3.9% after Life Storage pushed through a nice 8% sequential increase in its dividend in July 2022, bringing its quarterly payout up to $1.08 per share ($4.32 on an annualized basis). During the past decade, Life Storage’s dividend growth track record has impressed (its quarterly payout has more than tripled … Read more

Dividend Increases/Decreases for the Week of July 8

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Below we provide a list of firms that raised their dividends during the week ending July 8. 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                BP Prudhoe Bay Royalty Trust (BPT): now $1.405 per share quarterly dividend, was $1.087. CBL Properties (CBL): now $0.25 per share quarterly dividend, was $0.075. CF Bankshares (CFBK): now $0.05 per share quarterly dividend, was $0.04.      Crescent Point Energy (CPG): now CAD 0.08 per share quarterly dividend, was CAD 0.07. Dr. Reddy’s (RDY): now INR 30.00 per share annual dividend, was INR 25.00. Enterprise Products … Read more

High-Yielding CubeSmart Is A Compelling Income Generation Idea

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Image Source: CubeSmart – June 2022 IR Presentation By Callum Turcan The self-storage industry is home to several of our favorite income generation ideas due to the ability for companies operating in this space to generate substantial free cash flows after covering their total dividend obligations. Due to the favorable tax regime, most of these firms tend to be structured as real estate investment trusts (‘REITs’). CubeSmart (CUBE) is a self-storage REIT that is entirely focused on the U.S. market, and we include shares of CUBE as an idea in the High Yield Dividend Newsletter portfolio. As of this writing, shares of CUBE yield ~4.0%, and our fair value estimate for the firm stands at $56 per share, well above where shares of CUBE … Read more

Public Storage Getting Ready To Report First Quarter 2022 Earnings

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Image Shown: Public Storage, a longtime idea in our High Yield Dividend Newsletter portfolio, has seen its share price skyrocket over the past year with room for additional upside, in our view. By Callum Turcan After the market close on May 3, the self-storage real estate investment trust (‘REIT’) Public Storage (PSA) intends to report its first-quarter earnings for 2022, which will be followed up by an earnings conference call a day later. Shares of PSA have been a long-time idea in the High Yield Dividend Newsletter portfolio, and we continue to be enormous fans of the name. The high end of our fair value estimate range sits at $445 per share of Public Storage, indicating that shares of PSA have … Read more

Two High-Quality Self-Storage REITs Beat Estimates and Raise Guidance

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Image Shown: Shares of CubeSmart (depicted by the blue line) and Public Storage (depicted by the orange line), two self-storage REITs that are included as ideas in the High Yield Dividend Newsletter portfolio, have surged higher year-to-date. By Callum Turcan We are big fans of the self-storage real estate investment trust (‘REIT’) industry, particularly in the US. These REITs offer their customers an economical way to maximize their living space at a time when domestic housing prices are surging from a baseline that is already quite high. Additionally, self-storage REITs are well-positioned to push through continuous rent increases given that the monthly rental expense for a self-storage unit for an ordinary US household likely represents just a sliver of their … Read more

Public Storage Breaks Out!

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Image Shown: Public Storage’s chart looks mighty attractive, with shares having experienced a powerful breakout recently. Its dividend is equally attractive, in our view. Brian Nelson, CFA On Wednesday, April 28, Public Storage (PSA) reported excellent first-quarter 2021 results. The self-storage giant grew core funds from operations (FFO) 9.3% in the period, to $2.82 per diluted share. Same store direct net operating income advanced 6.5% as same store sales increased while same store direct cost of operations fell. Everything seems to be going right for Public Storage at the moment. Here’s what Public Storage’s CEO Joe Russell had to say about the quarter and outlook in the press release: Public Storage’s focus on the customer experience, operating model innovation, and … 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

Value Is Not Static and the Qualitative Overlay Is Vital to Our Process

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With prudence and care, the Valuentum Buying Index process and its components are carried out. Our analyst team spends most of its time thinking about the intrinsic value of companies within the context of a discounted cash-flow model and evaluating the risk profile of a company’s revenue model. We have checks and balances, too. First, we use a fair value range in our valuation approach as we embrace the very important concept that value is a range and not a point estimate. A relative value overlay as the second pillar helps to add conviction in the discounted cash-flow process, while a technical and momentum overlay seeks to provide confirmation in all of the valuation work. There’s a lot happening behind the scenes even before a VBI rating is published, but it will always be just one factor to consider. Within any process, of course, we value the human, qualitative overlay, which captures a wealth of experience and common sense. We strive to surface our best ideas for members.

Dividend Increases/Decreases for the Week Ending September 14

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Below we provide a list of firms that raised their dividends during the week ending September 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 Apollo Senior Floating Rate Fund (AFT): now $0.098 per share monthly dividend, was $0.096. Brady (BRC): now $0.21 per share quarterly dividend, was $0.2075. Clough Global Allocation Fund (GLV): now $0.1141 per share monthly dividend, was $0.1127. Clough Global Equity Fund (GLQ): now $0.1291 per share monthly dividend, was $0.1278. Clough Global Opportunities Fund (GLO): now $0.1012 per share monthly dividend, was $0.1007. DDR (DDR): now … Read more