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GEO Group: 11%+ Yield-To-Maturity Bond, A Steal At This Price

Published Wed, 08 Jul 2020 08:35:00 -0400 on Seeking Alpha

Seeking AlphaDividend Ideas | ServicesĀ GEO Group: 11%+ Yield-To-Maturity Bond, A Steal At This PriceJul. 8, 2020 8:35 AM ET|| About: The GEO Group, Inc. (GEO), Includes: CXWby: Rida MorwaRida Morwa High Dividend OpportunitiesThe #1 Service for Income Investors and Retirees, 9-10% dividend yield.SummaryPoliticians, COVID-19 and a crazy peer, oh my!
A lot of factors have driven down GEO's equity price, and it has reached the pricing of their bonds as well.
Their finances are solid and the CEO collects more in dividends than salary.
It looks like stealing, but don't worry, you won't be locked up.
Co-produced with Beyond Saving
COVID-19 crisis. Are you sick of hearing of it yet? Everyone is eagerly awaiting a "return to normal," while exactly when that will happen remains a huge unknown.
In the financial world, we will be seeing the scars of the COVID-19 crisis for a long time. In some instances, it will permanently change the way things are. In some cases, companies have been forced to do things like cut dividends because cash flow was significantly disrupted, while in other cases, companies took advantage of the disruption to implement plans that might have been disruptive on their own.
Disruption In Prisons
Even prisons have not been exempt from the impact of COVID-19. There has been an increase in costs as cleaning costs have escalated, and the main impact to revenue has come from a decline in population at immigration detainment centers. With US-Mexican border travel diminished, there have been fewer detainees. The two publicly-traded prison REITs, CoreCivic (CXW) and GEO Group (GEO) both negotiate contracts that are based on population but have guaranteed minimums. Populations have declined to the point that those minimums are kicking in.
At their Q1 earnings, GEO provided guidance of AFFO for $2.25-$2.35, down approximately 11% from their prior guidance due to COVID-19. That's assuming that populations at immigration detention... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
CORECIVIC 18.06   12.0 1.51 1.76 9.83


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