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3 Dividend Stocks, 2 REITs And A Dividend Champion

Published Thu, 27 Sep 2018 08:00:00 -0400 on Seeking Alpha

This research report was produced by The REIT Forum with assistance from Big Dog Investments.
Today, we bring you two REITs and a dividend champion.
Apartment Investment & Management Company Apartment Investment & Management Company (AIV) is gradually improving the average quality of their portfolio by selling off some of their older assets and acquiring new assets.

Source: AIV
AIV is providing clear guidelines for the expected level of capital activity. That gives investors a little more insight into the expected changes in the portfolio.
Their geography within the portfolio looks pretty good.
Source: AIV
The portfolio is clearly overweight California, but many apartment REITs are overweighting California. Essex Property Trust (ESS) is dramatically overweight in California and often trades at the highest multiples. I like the geography, but some of the assets are older or less appealing.
Sector risk
The apartment REIT sector is not inherently strong against recessions. Their ability to perform through a recession is primarily driven by strong balance sheets. If the apartment REITs were taking on aggressive levels of leverage, they could get hammered much worse during a recession.
However, AIV’s portfolio does provide a couple of ironic benefits.

Source: AIV
AIV has a weaker average asset quality than several of their peers. While some companies would try to hide that factor, AIV presents it as a strength.... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ANNALY CAPITAL MANAGEMENT 8.80   0.0 -3.32 1.20 13.45
ALTRIA GROUP 46.41   13.8 3.36 3.20 6.92
PHILIP MORRIS INTERNATIONAL 82.95   16.5 5.03 4.56 5.49
ESSEX PROPERTY TRUST 315.19   50.8 6.21 7.80 2.45


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