At their quarterly meeting today, the Directors of Urstadt Biddle Properties Inc. (NYSE: UBA and UBP), declared quarterly dividends on the Company’s Class A Common Stock and Common Stock. The dividends were declared in the amounts of $0.275 for each share of Class A Common Stock and $0.245 for each share of Common Stock. The dividends are payable April 18, 2019 to stockholders of record on April 4, 2019. The dividends were unchanged from the previous quarterly rates and represent the 197th consecutive quarterly dividend on common shares declared since the Company began operating in 1969.... more
During the years I have warned investors about blindly investing in a "sexy" ETF idea without first understanding the underlying index and how the fund works.
One thing that investors need to understand is that ETFs were primarily trading vehicles. They are not, or at least were not designed to be long-term investments hoping to generate alpha. To a sponsor, the primary goal is to gather assets while following the index. It's not to generate alpha, to provide above market returns or to preserve capital.
Another concept that goes hand in hand with this is chasing a distribution. While closed-end fund investors will certainly understand that a high distribution comes with a price, ETF investors are less receptive of this and will in many times explain higher distributions by lower... more
Lowe's (LOW) has many of the characteristics of a high-quality investment.
To begin, the company operates in a true duopoly. Lowe's only competitor of similar size is fellow large home improvement retailer Home Depot (HD). This lack of meaningful competition has provided the company with a tremendous historical growth record.
Importantly, Lowe's has done an excellent job sharing this financial success with its shareholders. With 56 years of consecutive dividend increases, Lowe's is both a Dividend Aristocrat (stocks with 25+ years of dividend increases) and a Dividend King (stocks with 50+ years of dividend increases).
While Lowe's dividend history is certainly impressive, the company's investors should not rely on its dividend history alone to measure its dividend safety. In... more
A reopening auction today of a 10-year Treasury Inflation-Protected Security generated a real yield to maturity of 0.578%, the lowest for this term since January 2018.
The reopening of CUSIP 9128285W6 created a 9-year, 10-month TIPS. It carries a coupon rate of 0.875%, which was set by the originating auction on January 17, 2019. At that January auction, the real yield (meaning yield above inflation) was 0.919%, about 34 basis points higher.
Because today's real yield came in below the coupon rate, investors had to pay a premium - an adjusted price of about $102.48 for about $99.69 of value. This TIPS will have an inflation index of 0.9969 on the settlement date of March 29, reflecting slightly-below-zero inflation in recent months.
Real yields have been falling dramatically... more
Financial advisors pitched the so-called "UBS Yield Enhancement Strategy" - or YES strategy - to their mostly ultra-high net worth customers. They sold it as a supposedly safe and efficient mechanism to enhance yield from generally conservative portfolios.
Wealthy investors were told that the YES strategy was a neutral or low-risk "Iron Condor" options trading strategy.
Here is what we have found from reviewing dozens of investor portfolios and consulting with several options experts.
The YES strategy at the end of last year faced a double whammy of problems that threw the strategy off course.
According to a recent interview in FINalternatives with Rick Selvala, the CEO of Harvest Volatility Management LLC, which manages over $9 billion in volatility-based strategies, Iron... more
It was only few days ago that we warned you about the partially inverted yield curve. Following the FOMC decision on Wednesday, and the remarks made by Jerome Powell during the press conference that followed it, we now feel that the "partially" is likely to be on its way to "fully".
Investors have grown skittish over the possibility of an inverted yield curve, which happens when short-dated bond yields are higher than their long(er)-duration counterparts.
As a reminder, an inverted yield curve - usually measured by the 10-2 Year Spread - has been a very reliable predictor of an upcoming recession. So much so that an inverted yield curve has actually predicted the past seven recessions.
You certainly don't want to bet against such a hitting record!
By Callum Turcan
Devon Energy Corporation (DVN) has a cash flow problem and that makes growing its dividend hard to do. Yes, the company recently increased its quarterly payout by 13% to nine cents per share, but that is nowhere near the $0.24 per share payout Devon Energy was rocking back in 2015. As of this writing, Devon Energy yields just 1.2% and its future dividend growth is in doubt. The company is once again undergoing a major restructuring in a bid to unlock shareholder value, keeping in mind that its share price has not held up well during the prolonged downturn in global pricing for raw energy resources. This time management is divesting Devon Energy's remaining gas-rich Barnett shale assets, as those are wildly uneconomical in a low Henry Hub world, and the firm's Canadian... more
Costco (COST) has enjoyed a 25% rally since it bottomed in late-December. As the stock is trading just 3% off its all-time high and has a rich valuation, its short-term upside potential seems limited. However, Oppenheimer recently stated that the stock has a near-term catalyst, as it may offer a special dividend of up to $10 per share. Therefore, the big question is whether Costco will distribute a special dividend this year.
Business overview When Amazon (AMZN) acquired Whole Foods, almost two years ago, it caused shockwaves to the stock of Costco. The latter plunged more than 20% in less than two months after the announcement of the acquisition, as the market was afraid that the already razor-thin margins of Costco would shrink even further. However, Costco has proved the market's... more
Actionable Conclusions (1-10): Brokers Estimated 15.1% To 131.3% Net Gains For 10 Tech WallStars To March 2020
Three of ten top dividend-yielding Techno WallStars were among the top ten gainers for the coming year based on analyst one-year target prices. (They're tinted gray in the chart below). So, this yield-based forecast for Technology, as graded by Wall St. wizards, was 30% accurate.
Projections based on estimated dividend returns from $1,000 invested in the highest-yielding stocks and their aggregate one-year analyst median target prices, as reported by YCharts, created the 2018-19 data points. Note: One-year target prices by a lone analyst were not applied. Ten probable profit-generating trades projected to pre-March 2020 were:
TiVo Corp... more
It looks like the days of Uniti Group (UNIT) serving as a high-yield prospect for investors are over, at least for now. On March 20th, the management team at the telecommunications REIT announced that it had slashed the distribution, letting it plummet from $0.60 per quarter, or $2.40 per year, down to $0.05 per quarter, or $0.20 per year. This 92% cut to the distribution is sure to smash morale among many shareholders, and it should be expected to last for the foreseeable future, but at the same time, long-term investors in the business should be cheering this move. If matters go over alright in the bankruptcy process of Windstream (OTCPK: WINMQ), whose future Uniti is inexorably tied to, the decline in price at Uniti, combined with management's ability to focus on deleveraging and... more