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Our High Yield REIT Portfolio: Q2 2019 Update

Published Tue, 09 Jul 2019 10:10:16 -0400 on Seeking Alpha

Most of you are familiar with dividend growth investing. 2CHYP (our high yield portfolio) has similar goals of generating an ever growing stream of cashflows, but uses a more active relative value approach. Over time we intend to both grow the portfolio’s income and outperform the index.
Dividend growth investing has worked well for many people as a low stress and somewhat reliable way to grow cashflows over time. It usually involves parking capital in a company that grows its dividends over time and is passive in the buy-and-hold sense of the word. There are clear strengths to this style of investment, but it may be running into some trouble going forward. The dividend champion stocks that have been the driver of this strategy’s success have become significantly overvalued; now trading at rather low yields and high multiples relative to growth. Thus, there is now risk of significant capital losses from today’s price in addition to lower current dividend returns.
I would like to suggest a more active alternative to dividend growth investing:
Dividend Engine Investing
Rather than parking one’s money in a stock and waiting for that company to slowly raise its dividends over time, we actively trade between securities to increase the cashflow of our portfolio. Market prices are constantly in flux and by opportunistically selling appreciated securities for discounted peers, we can continuously increase our net yield.
2CHYP commenced trading on 7/1/16 with $100K... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
CBL & ASSOCIATES PROPERTIES 1.38   0.0 -0.95 0.35 27.34
WP GLIMCHER 4.18   24.6 0.17 1.00 24.10
CORECIVIC 18.06   12.0 1.51 1.76 9.83
MACERICH 33.33   43.9 0.76 3.00 8.91
RLJ LODGING TRUST 17.42   22.0 0.79 1.32 7.69
IRON MOUNTAIN 34.14   28.4 1.20 2.44 7.29
CITY OFFICE REIT 13.89   0.0 -0.39 0.94 6.92
PHYSICIANS REALTY TRUST 17.27   61.7 0.28 0.92 5.36
UMH PROPERTIES 13.64   0.0 -1.18 0.72 5.26
WEYERHAEUSER 27.87   0.0 0.00 1.36 4.97
HEALTHCARE TRUST OF AMERICA 28.29   27.5 1.03 1.26 4.45


Older articles featuring Cbl & Associates Properties (CBL):
Dividend Cuts And Overdue Rent: REIT Earnings Recap
Dividend Cuts And Overdue Rent: Previewing REIT Earnings Season
Retail REITs: Double-Digit Yields, Secular Shifts And Mean-Reversion
We Need To Talk About Dividend Cuts - They Are A Necessary Evil
REIT Preferreds: Higher-Yield Without Excess Risk
Dividend Cuts And Overdue Rent: REIT Earnings Recap
Our High Yield REIT Portfolio - Optimizing Rebound Potential
Now Is Not The Time To Be A High-Yield REIT Investor
Macerich: Debunking Three Bear Theses, Including Why I Want A Dividend Cut
Introducing This Growing Dividend Portfolio