Study: Valuentum’s Best Ideas Newsletter Portfolio
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Omega’s First-Quarter Results Not Terrible; Dividend Still Intact
Image Source: Omega Healthcare, March 2018 Investor Presentation Omega Healthcare is a healthcare real estate investment trust (REIT) that has been battling concerns within its customer base regarding rent payments. Just how healthy its customer line-up truly is will likely play out in coming years, but for now, management is leaving the dividend intact. Shares yield 9%+ at the time of this writing. By Brian Nelson, CFA We’ve been concerned about the healthcare REIT arena ever since healthcare REIT HCP (HCP) slashed its payout in late 2016, “Dividend Aristocrat No More: HCP Cuts Its Payout,” leaving behind its long-term track record of consecutive annual dividend increases and the coveted Dividend Aristocrat nameplate. Omega Healthcare (OHI) has been one that we … 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
8 Announcements and Top Research You May Have Missed
8 Announcements. This article was sent to members via email March 27. By Brian Nelson, CFA Hi everyone, Brian here. Trust you are doing great! Here are eight announcements I want you to be aware of: Everything we do is for our members. We’re very proud of the outperformance of the Best Ideas Newsletter portfolio, that we’ve never had a dividend cut in the Dividend Growth Newsletter portfolio, that our high-yield ideas are holding up very well, and the success rates of the Exclusive capital-appreciation ideas and short-idea considerations are running at approximately 80%. We’re proud to be your research partner. The odds of a Fed rate cut are going up as yield-curve inversion continues to threaten. The risks are more behavioral in … Read more
US Congress Is Getting Ready to Pass a Massive ~$2.2 Trillion Fiscal Stimulus Bill
Image Shown: US equities have started to recover some of their lost ground as the likelihood that the US Congress will pass a massive ~$2.2 trillion fiscal stimulus and emergency spending package, dubbed the CARES Act, has increased significantly over the past week as seen through the bounce in the SPDR S&P 500 ETF Trust (SPY). President Trump has clearly indicated that he intends to sign such a bill into law as soon as possible, with the US House of Representatives expected to take up the legislation this upcoming Friday morning on March 27. By Callum Turcan On March 25, the US Senate worked late into the night to secure a bipartisan compromise on a massive ~$2.2 trillion fiscal stimulus … Read more
There Is Milk At The Store
This article first appeared in the September edition of the High Yield Dividend Newsletter. For more information about this publication, please see here. “Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.” — Winston Churchill By Brian Nelson, CFA Very few of us could have imagined that we’d witness the bull market that began on that fateful day in March 2009 that might very well mark a generational low. In 2009, major investment banks around the globe were struggling to survive, and the fallout in the mortgage markets left the banks holding paper that nobody wanted to own, let alone buy. The global financial system … Read more
Top Research and Ideas You May Have Missed
Is Quant Value Giving Intrinsic Value Investors a Bad Name? Surely, you don’t believe Warren Buffett’s “style” is out of favor? By Brian Nelson, CFA I need to make sure that you’re aware of something very important. The media and perhaps many investment professionals define the concept of “value” as companies with low price-to-book (P/B) ratios, and the concept of “growth” as companies with high price-to-book ratios. This definition of “value” and “growth” and their corresponding returns have been magnified in writings throughout the media and across quantitative research, even in prestigious journals. Warren Buffett has been rallying against most quantitative applications and how “growth” and “value” are defined in popular media and quantitative research for decades. Here’s one of the Oracle’s most … Read more
High-Yielding Crown Castle Is One of Our Favorite REITs
Image Shown: We include Crown Castle International Corp as an idea in our High Yield Dividend Newsletter portfolio. Image Source: Crown Castle International Corp – October 2021 IR Presentation By Callum Turcan Crown Castle International Corp (CCI) is a real estate investment trust (‘REIT’) that owns and operates cell towers, fiber networks, and small cell nodes in the US. These assets form the backbone of wireless infrastructure and are key to enabling the domestic rollout of 5G networks and supporting existing 4G networks. We include shares of CCI in our High Yield Dividend Newsletter portfolio as we are big fans of its strong dividend coverage (when taking its ability to tap capital markets into account), impressive growth outlook, and high-quality … Read more
Valuentum: Now Bearish, We’ve Been Here Every Step of the Way
Valuentum Has Been Here Every Step of the Way From the COVID-19 top in February 2020 to the COVID-19 bottom to the massive bull run through the end of 2021, we’ve been here for you. 2022 started out to be a rough year, catching many by surprise. But Valuentum stayed positive. When the markets headed south in June, Valuentum stood its ground. On June 14, Valuentum said that “we still believe stocks could make a “huge rebound” in the near term. We reiterated our views a few days later and on June 19, we said that “investors shouldn’t panic during this bear market” and that “stocks remain an attractive proposition at the moment and a very attractive consideration … Read more