Published Fri, 22 Feb 2019 07:00:00 -0500 on Seeking Alpha
This article was co-produced with Dividend Sensei.
Warren Buffett, the greatest investor in history (over 53 years of 20+% CAGR total returns) is famous for his love of contrarian value investing. What’s more some of the man’s biggest winners came in his early days when he proved adept at mastering Benjamin Graham’s (the father of value investing) “cigar butt” style of buying companies at large discounts to book value.
"...if we assume that a very considerable amount of Wall Street activity must inevitably have elements of chance in it, then the sound idea would be to measure these chances as accurately as you can, and play the game in the direction of having the odds on your side." Ben Graham
So, it’s not surprising that plenty of income investors try to “bend it like Buffett” and also try their hand at deep value investing, especially when it comes to REITs, which by law, are a high-yield sector.
But as with all things in finance, there is both art and science to deep value REIT investing, specifically a big difference between a good long-term contrarian value play, and a value/yield trap to be avoided like the plague.
So, let’s take a look at what I consider three yield trap REITs, CBL & Associates (CBL), Washington Prime Group (WPG), and Uniti Group (UNIT)
These are considered by many income lovers, to be either great long-term contrarian investments or value/yield traps to be avoided (depending on who you ask). I’ll show you a... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|CBL & ASSOCIATES PROPERTIES||1.20||0.0||-0.95||0.30||25.64|
Older articles featuring Cbl & Associates Properties (CBL):CBL Properties Declares Preferred Stock Dividends
Our High Yield REIT Portfolio Heading Into The 2nd Quarter
Washington Prime: Why I'm Short This 18% Yielder
Dividends By The Numbers For March 2019 And 2019-Q1
Deep Value And 18.5% Yield From Washington Prime
Tanger Factory Outlet Centers: What Does A Complete And Unbiased Analysis Yield?
Our 'Top Preferred Stock Pick', 9% Yield And Big Upside, From Pennsylvania REIT
CBL Properties Declares Common Stock Dividend and Preferred Stock Dividend
Taubman Centers: An Attractive Mall REIT That Offers A Solid Dividend Yield
Washington Prime Group: Top Preferred Stock Pick With 10% Yield, 40% Upside