Kimco Realty Corp. (KIM) is an attractive commercial property real estate investment trust to consider in case the stock market drops again on the back of new tariff announcements and escalating trade rhetoric between the United States and China. Despite rising market uncertainty about the trade conflict, Kimco Realty Corp. makes a compelling value proposition based on portfolio strength, diversification, excess dividend coverage and dividend growth potential. An investment in Kimco Realty Corp. yields 6.2 percent.
Kimco Realty Corp. - Portfolio Overview
Kimco Realty is a diversified shopping center real estate investment trust with a large commercial property portfolio in the United States. At the end of the March quarter, the REIT’s real estate portfolio included 430 shopping... more
ABN has struggled this year
The share price has failed to participate in the broader bank sector rally we've seen recently, being -5% YTD and -20% on a 1-year view. This is a conspicuously worse performance than northern European commercial banking peers like BNP Paribas (OTCQX: OTCQX:BNPQF, OTCQX: OTCQX:BNPQY), which is +15% YTD or ING (NYSE: ING), +7%.
Source: FT markets data
The underperformance can be traced back to the full-year 2018 results in February and to the surprise announcement that the dividend was to being held flat at the 2017 level (€1.45), against consensus expectations for 6% growth to (€1.54). My fear is we could be in for a repeat in 2019 given expectations are currently for the dividend to grow by 10% this year to €1.60, an assumption that... more
CSG (Nasdaq: CSGS), the trusted partner to simplify the complexity of business transformation in the digital age, today announced that its Board of Directors approved the Company’s quarterly cash dividend payment of $0.2225 per share of common stock to be paid on June 19, 2019 for shareholders of record as of the close of business on June 4, 2019.... more
Little-Known Factor Could Affect Your Retirement Income
A few months ago, I heard from a reader who had bought shares of Vodafone Group Plc (Nasdaq: VOD).
He figured the U.K. business, which provides landline, wireless, and Internet services worldwide, would provide a great stream of retirement income. Undaunted by the company’s deteriorating financials, he purchased the stock in December “for the nine percent yield.”
The lofty payout didn’t scare him, but it should have. What happened next highlights an important lesson for dividend investors: stocks with big yields often come with big risk.
On May 14, citing the impact of declining free cash flow, Vodafone announced it would “rebase” its distribution. In plain English, that means... more
With the recovery of Canadian oil prices since the beginning of the year, Cardinal Energy (OTC:CRLFF) reported strong Q1 results. Despite the small production drop due to the production curtailment in Alberta, management maintained the goal of holding production flat for the full year. Also, the net debt decreased and management raised the dividend.
Yet, the market values the company at a free cash flow yield close to 20% with conservative assumptions. Considering the low valuation, I'd prefer management to repurchase shares instead of paying a dividend.
But the company is interesting for dividend-oriented investors. The 2019 dividend is safe, and there's a strong possibility for a dividend increase in 2020.
Before discussing the valuation and the capital allocation... more
From a fund flows perspective, the high-yield funds peer group got off to a rousing start in 2019. The group recorded net positive flows in 13 of the first 15 weeks; they recorded their largest quarterly net inflows (+$12.0 billion) since the third quarter of 2012; and the positive investor sentiment continued into the start of Q2 (net inflow of +$2.6 billion for the month). Since the tail-end of April, though, high yield funds have experienced a change in demand as they have suffered net outflows in three of the last four weeks. This downturn includes net negative flows of $2.6 billion for the most current fund-flows trading week (ended May 15)—the group’s worst weekly flows result since late December 2018.
The fund flow results for the high-yield funds peer group we’ve seen... more
This article was co-produced by Rubicon Associates.
You may recall that we wrote an article earlier this year titled, "Accessing The Power Of Stress-Free, REIT Preferred Stocks." We explained that "REIT preferred stocks can be very useful for the construction of an investment portfolio - diversifying both its general and cash flow characteristics."
We added that investors should "understand what preferred equity really is" and we added this "working definition" below:
Preferred equity is essentially the shareholders' equity on a company's balance sheet. Junior in seniority to debt, it's still senior to common equity in that preferred dividends must be paid out prior to any dividends on common equity. Yet due to the dividend rate typically stated in advance and a lack of... more
bebe stores, inc. (OTCQB:BEBE) (the “Company”) today announced that its Board of Directors declared a quarterly cash dividend of $0.125 per share of the Company’s common stock. Shareholders of record on May 30, 2019 will be paid a dividend of $0.125 on June 20, 2019. The dividend is primarily based on the trailing quarter of licensing income from BB Brand Holdings LLC, the joint venture 50% owned by the Company.... more
I recently read this post on The Retirement Café. It's a fine blog for sure penned by Dick Cotton. Here's The Mystery of The Dividend Preference and the 'Spend Only' Strategy.
First, let's set the stage, from that article.
A good many retirees seem to be enamored with the "Spend Interest and Dividends Only" strategy for spending down their retirement savings. The foundation of this strategy is a preference for the value of a dollar generated from dividends over the value of a dollar generated from the sale of stock, or capital gains.
Let's move on to the statement that for my money, is largely false and based on unproven or 'unprovable' assumptions.
Hartzmark thinks dividends fall under the category of mental accounting. He describes a "free dividend fallacy", in which... more
Headquartered in Birmingham, Alabama, Regions Financial Corp. (RF) provides a wide array of banking services to customers primarily in the southern and midwestern United States. Regions was founded in 1971 as the merger of three Alabama banks, and today it is the 32nd largest US bank, operating nearly 2,000 ATMs and nearly 1,500 branches. Below I’ll take a look at whether RF stock could be an attractive addition to your dividend stock portfolio.
To determine whether I would consider RF stock to be a good investment, I first want to look at a few metrics. Return on assets, price-to-earnings, and price-to-book are key metrics that I use to initially identify a stock that is potentially undervalued.
Return on assets (ROA) is a metric that I typically examine for companies within... more