A new 10-year Treasury Inflation-Protected Security - CUSIP 9128287D6 - auctioned today with a real yield to maturity of 0.282%, the lowest yield for any auction of this term since September 2016.
This new TIPS got an auction-generated coupon rate of 0.250%, down a stunning 62 basis points since a similar auction on January 17. It is evidence of the market's quick adjustment to potential interest rate cuts by the Federal Reserve, which could begin later this month.
Investors at today's auction paid about $99.76 for about $100.11 of value, after accrued inflation is added in. This TIPS will have an inflation index of 1.0011 on the settlement date of July 31.
A TIPS is a Treasury investment that pays a coupon rate well below that of other Treasury investments of the same term.... more
The Western Union Company (NYSE: WU), a global leader in cross-border, cross-currency money movement, announced today that its board of directors declared a quarterly cash dividend of $0.20 per common share, payable September 30, 2019 to stockholders of record at the close of business on September 16, 2019.... more
Sanderson Farms, Inc. (Nasdaq: SAFM) today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.32 (thirty-two cents) per share payable August 13, 2019, to stockholders of record on July 30, 2019.... more
Dividends of Hanmi Financial Corp (HAFC), the parent of Hanmi Bank, have increased consistently since 2013. We expect the trend to be maintained for 2019 as well because we expect HAFC's earnings to continue to surge in 2019. We expect the bank's dividends to increase by 8.9% in 2019 providing a forward dividend yield of 4.84%. Our valuation analysis also shows that the bank is currently undervalued. We expect price appreciation of around 17.7% in the next six months.
Earnings to Rise in 2019 on the Back of Earning Assets Growth
We expect HAFC's earnings to increase by 9.3% in 2019 on the back of an increase in net interest income. Our expectation of increase in net interest income is attributable to an increase in earning assets, which in turn will be driven by a rise in... more
The board of directors of PPG (NYSE: PPG) today approved a 3-cents-per-share increase in the company’s dividend, declaring a regular quarterly dividend of 51 cents per share, payable Sept. 12 to shareholders of record Aug. 12.... more
The Board of Directors of Barnes Group Inc. (NYSE: B) has declared a quarterly cash dividend of sixteen cents ($0.16) per share. The dividend will be payable September 10, 2019 to shareholders of record at the close of business on August 26, 2019.... more
Georgia-based Synovus (SNV) continues to confound me. I realize that it’s not the best-run bank in the region, and I realize there are outsized risks in buying an aggressive, fast-growing Florida bank like FCB with large exposure to Florida real estate at or near the peak of the cycle, but the bank’s operating performance since the deal has been pretty steady and it seems to me that the Street continues to price in an ugly scenario of curve-based spread compression and elevated credit losses.
Credit quality is one of those “you don’t know until you know … you know?” risks with any bank, and I do think there is downside risk for Synovus here as the rate cycle reverses course and the Fed starts an easing cycle. It would seem to take a pretty grim set of assumptions to... more
Co-produced with Trapping Value and Beyond Saving for High Dividend Opportunities
We are pleased to provide an update on Iron Mountain (IRM), a "specialty REIT". IRM has pulled back recently due to a downgrade by Bank of America. We strongly disagree with this downgrade and we believe that the pullback is a great buying opportunity. In view of this opportunity, I added a position in IRM to my retirement portfolio and recommended to our investors, members of "High Dividend Opportunities" to do the same. Below is our full report.
In April, we wrote an article about investing in specialty REITs, where we identified REITs that operate in niche markets where they have little competition and the potential for those niche markets to remain strong... more
After focusing on Brookfield Asset Management (BAM) in Part I of this series, we move down the ladder to Brookfield Property Partners LP and its near twin Brookfield Property REIT.
The publicly traded components of the Brookfield empire consist of Brookfield Asset Management, Brookfield Property Partners (BPY), Brookfield Property REIT (BPR), Brookfield Infrastructure Partners L.P. (BIP), Brookfield Renewable Partners L.P. (BEP), and Brookfield Business Partners (BBU). The total capitalization as of the end of last quarter for the listed partnerships was $64 billion while private funds totaled $71 billion. BAM receives management and performance fees on the distributions of BPY, BIP and BEP and unit price of BBU when certain thresholds are met. For those... more
Tremont Mortgage Trust (Nasdaq: TRMT) today announced a regular quarterly cash distribution on its common shares of $0.22 per common share ($0.88 per share per year). The distribution declared today will be paid to TRMT’s common shareholders of record as of the close of business on July 29, 2019 and distributed on or about August 15, 2019.... more