In a recent article, I explained why the Real Estate sector is a top-three sector for dividend-growth investors to target this quarter. In this quarter, I will dig deeper into the sector and highlight opportunities for yield, yield growth, and capital gains within the equity market that are not REITs.
To start, the Real Estate sector is a tricky one from the equity perspective. You can't just go out and buy a share in a real estate development. There are ways to gain access, REITs are the most popular, but they have drawbacks. The primary is tax liabilities, REITs are a tax-sheltered investment vehicle which means additional tax burden for your portfolio. REITs are a fine investment, I'll highlight a few of them in another article, but not always appropriate within a portfolio.
Penns Woods Bancorp, Inc, (PWOD), a bank holding company, provides a high forward dividend yield of 4.29%. We are highly confident that PWOD will be able to maintain its dividends in 2019 because we expect the company’s earnings to increase in 2019, and also because the company has a good track record of consistently paying dividends. Our valuation analysis, however, shows that the bank is currently fairly valued in the market. Details of our earnings and valuation analysis follow.
PWOD Appears Attractive Due to High Dividend Yield and Stable Dividends
PWOD offers a high dividend yield of 4.29% with a very consistent quarterly dividend of USD 0.47. The company has been maintaining this level since the first quarter of 2012. The Directors of the company appear to be committed to... more
Harleysville Financial Corporation (OTCQX:HARL) reported today that the Company’s board of directors declared a regular quarterly cash dividend of $.25 per share on the Company’s common stock. The cash dividend will be payable on August 14, 2019 to stockholders of record on July 31st, 2019.... more
BlackRock, Inc. (NYSE: BLK) today announced that its Board of Directors has declared a quarterly cash dividend of $3.30 per share of common stock, payable September 24, 2019 to shareholders of record at the close of business on September 5, 2019.... more
Our strategy is to invest in dividend growth stocks. So much of our emphasis on this website is finding companies that have demonstrated their ability to grow their dividend over time. If you don't believe us, check out the three pillars of our infamous Dividend Stock Screener! But as I continue to monitor and review our portfolio, there is one stock that jumps off the page at me. That company is Schlumberger (NYSE: SLB). No, it isn't because the company hasn't increased their dividend in several years. It is because I am asking myself a much more tragic question after reviewing the numbers closely. Is Schlumberger's dividend safe?
Schlumberger has long been a thorn in my side. I purchased shares of the company at the end of 2014, after the company increased their quarterly... more
EPR Properties (NYSE: EPR) today announced that its Board of Trustees has declared its monthly cash dividend to common shareholders. The dividend of $0.375 per common share is payable August 15, 2019 to shareholders of record on July 31, 2019. This dividend represents an annualized dividend of $4.50 per common share, an increase of over 4% over prior year and the Company’s ninth consecutive year with an annual dividend increase.... more
Entegris, Inc. (NasdaqGS: ENTG), a leader in specialty chemicals and advanced materials solutions for the microelectronics industry, today announced that its Board of Directors has declared a quarterly cash dividend of $0.08 per share, a fourteen percent increase compared to the prior quarterly dividend. The dividend will be paid on August 21, 2019 to shareholders of record on the close of business on July 31, 2019.... more
In a market environment such as this one, high-yielding investments can be difficult to find. The market is near all-time highs, suppressing the available yields of many dividend-paying stocks. US treasuries aren't offering much either, as investors can get just 2.1% from 10-year notes. Under these circumstances, investors can sometimes gravitate towards lesser-known stocks if they offer investors the high yields they are looking for. Hanesbrands Inc. (HBI) is one such stock that currently offers a solid dividend yield of 3.61%. However, the dividend hasn't been increased by management since January of 2017. A frozen dividend is often a sign of trouble ahead. Despite this, we find quite the contrary to be true. The dividend is covered by cash flows, and Hanesbrands has been successful in... more
This article is an update of my article on the Virtus Total Return Fund (ZF) published last year.
(Data below is sourced from the Virtus website unless otherwise stated.)
Fund History The Virtus Total Return Fund was originally created in 2005 but it traded under the ticker DCA. In April 2017 it merged with the Zweig Fund and the ticker then changed from DCA to ZF. The fund strategy also changed at that time. Because of this, it can be misleading to look at longer-term performance numbers.
Fund Merger On July 3, 2019, Virtus announced a proposed merger of ZF into Virtus Global Dividend & Income Fund Inc. (ZTR):
At a joint special meeting to be held on November 1, 2019, ZF shareholders will be asked to approve the merger of ZF into ZTR. ZTR shareholders will be asked to... more
The closed-end funds from the high-yield sector significantly increased their prices over the past months. Currently, most of them are traded at positive Z-scores, which is an indication that they have lost most of their statistical edge. Still, they are traded at high discounts, but we are cautious when we select our positions due to the lack of statistical edge. For me personally, I am in a waiting mode to see a statistical opportunity to review some of the funds.
The main event from the last week was the testimony of the Fed Chairman Jerome Powell. It was important because the investors expected to understand what is the viewpoint of the central bank regarding the interest rates. For the high-yield bonds, a possible rate cut may give a positive... more