VTR
High-Yielding Income Growth Idea Digital Realty Expects Business Will Continue Recovering
Image Shown: We are big fans of Digital Realty Trust Inc’s global footprint. Image Source: Digital Realty Trust Inc – Fourth Quarter of 2021 IR Earnings Presentation By Callum Turcan On February 17, Digital Realty Trust Inc (DLR) reported fourth quarter 2021 earnings that beat both consensus top- and bottom-line estimates, though its near term guidance came in a tad softer than expected. The data center real estate investment trust (‘REIT’) is facing headwinds from vintage leases rolling off and concerns about surging power costs around the world. On the plus side, Digital Realty is experiencing decent growth at the part of its business where re-leasing terms have been more favorable, and its contracts generally include provisions that allow the … Read more
The Best Years Are Ahead
By Brian Nelson, CFA — The wind is at our backs. — The Federal Reserve, Treasury, and regulatory bodies of the U.S. may have no choice but to keep U.S. markets moving higher. The likelihood of the S&P 500 reaching 2,000 ever again seems remote, and I would not be surprised to see 5,000 on the S&P 500 before we see 2,500-3,000, if the latter may be in the cards. The S&P 500 is trading at ~4,100 at the time of this writing. — The high end of our fair value range on the S&P 500 remains just shy of 4,000, but I foresee a massive shift in long-term capital out of traditional bonds into equities this decade (and markets … Read more
VBI Ratings Not as Impressive As We Would Have Liked in 2022
Image: How the VBI rating system has ranked equities so far this year. By Brian Nelson, CFA At Valuentum, we use the Valuentum Buying Index (VBI) to source ideas into diversified simulated newsletter portfolios, and the VBI may be most applicable to the simulated Best Ideas Newsletter portfolio, where we generally like to include ideas when they register a high VBI rating and remove them when they register a low VBI rating. We always use the VBI in a portfolio setting and never by itself. But what about the Valuentum Buying Index ratings, themselves? How did they “perform” during 2022 in one of the worst years for stock market investors in history? Well, not as spectacular as we would have … Read more
Dividend Increases/Decreases for the Week Ending December 15
Below we provide a list of firms that raised/lowered their dividends during the week ending December 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 Abbot Laboratories (ABT): now $0.28 per share quarterly dividend, was $0.265. AES (AES): now $0.13 per share quarterly dividend, was $0.12. Air Lease (AL): now $0.10 per share quarterly dividend, was $0.075. Altius Minerals (ATUSF): now CAD 0.04 per share quarterly dividend, was CAD 0.03. Amgen (AMGN): now $1.32 per share quarterly dividend, was $1.15. AT&T (T): now $0.50 per share quarterly dividend, was $0.49. Balchem … Read more
Public Storage Is a High-Quality Income Generation Idea
Image Shown: Public Storage, a self-storage REIT that is included as an idea in our High Yield Dividend Newsletter portfolio, is a stellar cash flow generator with a bright growth outlook. We are huge fans of the self-storage REIT industry, particularly in the US, due to the ability of companies operating in this space to fully cover their total dividend obligations with their free cash flows. Image Source: Public Storage – March 2022 IR Presentation By Callum Turcan The self-storage industry is an attractive space for investors seeking income generating opportunities, particularly real estate investment trusts (‘REITs’) with a sizable presence in the U.S. market. The self-storage REIT owns economic interests in 2,800+ self-storage properties across the US. Public Storage … Read more
Dividend Increases/Decreases for the Week of February 14
Below we provide a list of firms that raised their dividends during the week ending February 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 Acadia Realty Trust (AKR): now $0.20 per share quarterly dividend, was $0.19. American Business Bank (AMBZ): now $0.25 per share quarterly dividend. American Homes 4 Rent (AMH): now $0.30 per share quarterly dividend, was $0.26. AstraZeneca (AZN): now $1.03 per share semi-annual dividend, was $0.50. Avista (AVA): now $0.49 per share quarterly dividend, was $0.47. Brookfield (BN): now $0.09 per share quarterly dividend, was … Read more
2,350-2,750 on the S&P? Could the Coronavirus Catalyze a Financial Crisis?
Image: We think a rather modest sell-off in the market to the target range of 2,350-2,750 on the S&P 500 is rather reasonable in the wake of one of the biggest economic shocks since the Global Financial Crisis. The chart above shows how far markets have advanced since 2011, and an adjustment lower to the target range of 2,350-2,750 is rather modest in such a context and would only bring markets to late 2018 levels (note red box as the target range). The range reflects ~16x S&P 500 12-month forward earnings estimates, as of February 14, adjusted down 10% due to COVID-19. When companies like Visa talk about a couple percentage points taken off of growth rates, one knows that … Read more
Digital Realty Is a Stellar Income Growth Idea
Image Source: Digital Realty Trust Inc – September 2021 IR Presentation By Callum Turcan Digital Realty Trust Inc (DLR) is a carrier-neutral data center real estate investment trust (‘REIT’) that provides co-location and interconnection services. The REIT has grown its annual dividend over the past 15+ consecutive years, and we view Digital Realty as a stellar income-generation idea. As of this writing, shares of DLR yield ~2.8%. We include shares of DLR as an idea in both the Dividend Growth Newsletter and High Yield Dividend Newsletter portfolios. Investors have been steadily warming up to Digital Realty this year, with shares of DLR up ~23% year-to-date as of the end of normal trading hours on September 8 (before announcing its latest … Read more
Great Year for (Our) High Yield Dividend Ideas! Inquire about the High Yield Dividend Newsletter!
“When I highlighted my concerns about MLPs years ago, we were doubted, but we ended up being right. When we warned about the value factor, we were told the quants had solved the market, but we ended up being right, with the quant factor having its worst year in 2020 in history. We called the COVID-19 crash and highlighted opportunities for dollar cost averaging near the March 2020 bottom. We were bullish on the huge upswing in 2021, and we avoided the worst areas of 2022 to the point where our publishing suite is doing fantastic this year, if not “outperforming.” When I highlighted the second edition of the book Value Trap, our team released a press release warning about the 60/40 … Read more