Daily Archives: June 12, 2018

Dividends

3 Stocks Raising Dividends in July

There is a general misconception that rising interest rates are always bad for real estate investment trust (REIT) values. However, history shows that REITs have outperformed 75% of the time during the last 16 periods of rising interest rates. One reason is that quality REITs will grow their dividends, and if the dividend increases keep up or exceed the interest rate increases, you are better off owning the REIT shares.

Buying shares in the month before a dividend announcement is one strategy that can produce a quick start to a new for you REIT investment. Most REITs increase their dividend rate once a year, and then pay that new rate for the next four quarters. From the way share prices change, it is apparent the investing world is not aware of the timing of dividend boosts in the REIT world. I maintain a database of about 130 REITs and include which month each usually announces its dividend hikes.

Summer is one season with the fewest number of increase announcements. However, it can also be an opportunity because the market is not looking for higher dividend rate announcements. There are three REITs that should announce higher payouts in July. You can pick up shares now, and when a new higher dividend is announced you get the double bonus of a possible share price increase on the news and the guaranteed benefit of a higher yield than the current quoted rate. Here are three stocks to consider buying in June for a July dividend increase.

Select Income REIT (Nasdaq: SIR) owns 100 buildings, containing 17 million square feet that are 88.7% leased. In January the company spun off its 266 industrial properties into a new REIT, Industrial Logistics Properties Trust (NYSE: ILPT). SIR retained 69% ownership in the new REIT and consolidates the industrial company results to its income statement. Revenue growth is generated by built in rent escalators and the development of raw land industrial properties at ILPT.

Select Income has steadily increased its dividend since the company’s IPO in early 2012. However, last year, there was not an increase. FFO per share has continued to grow and it is probable that SIR will get back on the dividend growth track this year. The next dividend announcement will be in mid-July, with a record date a week later and payment in mid-August. SIR currently yields 9.5%.

National Retail Properties, Inc. (NYSE: NNN) is a traditional triple-net lease REIT. The company owns over 2,800 (up by 300 in the last year) free-standing, single tenant retail properties. most of the REIT’s tenants are in business that cannot be hurt or replaced by online sellers. The top types of businesses are convenience stores, casual and fast food restaurants, auto service shops, fitness outlets, movie theaters and auto parts stores. When acquiring new properties NNN focuses on buying stores with great locations over high quality tenants. The good locations mean that the tenants will be successful and be able to pay the rents. Also, if a tenant does leave, it will be easier to re-lease a property in a great location.

NNN is a Dividend Aristocrat and has increased its dividend for 28 consecutive years. The current dividend is 71% of FFO. NNN will announce its next dividend boost in mid-July with record date at the end of the month and payment in mid-August.

Dividend growth has been about 4% per year and the current yield is 4.5%.

EdR, Inc. (NYSE: EDR) develops, acquires, owns and manages collegiate housing communities located near university campuses. Currently the company owns 79 (up 13 in the last year) communities in 50 different university communities. These communities are located 1/10th to 1/3rd of a mile from the campuses. The college housing business model has produced stable revenue growth, averaging 3.7% per year same store gains. Development and acquisitions boost that core growth rate.

Last year, EDR increased its dividend by 2.6%. Recently, the company sold a handful of older properties and will invest the proceeds into new development. FFO for 2018 will be flat compared to last year. I expect a dividend increase in the 2.0% to 2.5% range. EDR will announce its next dividend boost in mid-July with record date at the end of the month and payment in mid-August. The stock currently yields 4.1%.

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10 Big-Cap Turnaround Stocks for Value-Hunting Investors

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Large-cap stocks are inching higher on Monday, continuing the push they’ve enjoyed over the past couple of weeks led largely by the mega-cap technology stocks in the Nasdaq Composite — which has enjoyed a rally to new record highs.

The rest of the market, however, has lagged behind. The pressure keeping performance in check comes amid a drag in the markets’ weakest areas, including consumer staples and yield-sensitive equities, such as utilities and telecoms.

That’s good news for value-hunting investors, though, who are piling into these stocks in droves, setting the stage for impressive turnarounds.

The picks that follow are not recommendations to buy, as volatility continues to play out in the markets with investors remaining on edge. That said, here are 10 blue-chip stocks experiencing turnarounds worth watching:

Turnaround Stocks: Procter & Gamble (PG)

Procter & Gamble (NYSE:PG) shares are rising off of a three-month consolidation range to arc back above its 50-day moving average returning to levels not seen since April. Consumer products stocks like PG have been under pressure for months amid margin pressure from higher costs and limited ability to pass through the increases to consumers amid intense competition from store brands and online retailers.

The company will next report results on July 26 before the bell. Analysts are looking for earnings of 91 cents per share on revenues of $16.7 billion. When the company last reported on April 19, earnings of $1.00 per share beat estimates by a penny on a 4.3% rise in revenues.

Turnaround Stocks: Travelers (TRV)

Travelers (NYSE:TRV) shares are consolidating below their 200-day moving average and look ready to break to the upside, setting the stage for a return to highs last seen in March as financial stocks, in general, receive a lift here.

The company will next report results on July 19 before the bell. Analysts are looking for earnings of $2.44 per share on revenues of $6.7 billion.

When the company last reported on April 24, earnings of $2.46 per share missed estimates by 23 cents.

Turnaround Stocks: United Technologies (UTX)

United Technologies (NYSE:UTX) has bounced twice off of its 200-day moving average and looks set for a rally back to its March highs, which would be worth a gain of more than 5% from current levels.

The company is set to rise on exposure from defensive spending (jet engines) but also from any possible clarity on trade tensions between the U.S. and China/NAFTA.

The company will next report results on July 24 before the bell. Analysts are looking for earnings of $1.84 per share on revenues of $16.2 billion. When the company last reported on April 24, earnings of $1.77 beat estimates by 26 cents on a 10.3% rise in revenues.

Turnaround Stocks: Verizon (VZ)

Verizon (NYSE:VZ) shares are emerging from an upward-tilting consolidation range going back to February. This continues a sideways range that has been in play since 2016.

Analysts at JPMorgan upgraded shares back in May ahead of what is expected to be a big iPhone upgrade cycle this year (new phones, lower price points) and the fact that industry consolidation is likely to relieve some of the competitive pressures being seen on price.

The company will next report results on July 24 before the bell. Analysts are looking for earnings of $1.15 per share on revenues of $31.7 billion. When the company last reported on April 24, earrings of $1.11 per share matched estimates on a 6.6% rise in revenues.

Turnaround Stocks: Caterpillar (CAT)

Caterpillar (NYSE:CAT) shares look ready for a rise above double-top resistance near $160 ahead of a possible run to prior highs near $170 — which would be worth a gain of roughly 10% from current levels.

The company’s fortunes have risen and fallen based on the outlook for trade deals between the United States and its trading partners. Hopes are rising that an agreement with North Korea this week (on denuclearization) could spur a broad deal with China.

The company will next report results on July 30 before the bell. Analysts are looking for earnings of $2.72 per share on revenues of nearly $14 billion. When the company last reported on April 24, earnings of $2.82 per share beat estimates by 72 cents on a 30.9% rise in revenues.

Turnaround Stocks: Walt Disney (DIS)

Walt Disney Co (NYSE:DIS) shares are rising off of support near the $100-a-share level, moving above the 200-day moving average ahead of what’s likely to be a run at the January high near $113 — which would be worth nearly a 8% move from here — as hype builds for the Incredibles 2 due out this week.

The company will next report results on Aug. 7 after the close. Analysts are looking for earnings of $1.96 per share on revenues of $15.4 billion. When the company last reported on May 8, earnings of $1.84 per share beat estimates by 14 cents on a 9.1% rise in revenues.

Turnaround Stocks: DowDuPont (DWDP)

DowDuPont (NYSE:DWDP) shares are rising over their 200-day moving average, exiting a multi-month consolidation range, as traders look for margin relief thanks to the recent cooling of crude oil prices.

As a reminder, chemical companies have petroleum as a key expensive item. So the decision by OPEC to consider easing their production cap at their policy meeting later this month is set to provide badly needed relief.

The company will next report results on Aug. 2 before the bell. Analysts are looking for earnings of $1.27 per share on revenues of $23.6 billion. When the company last reported on May 3, earnings of $1.12 per share beat estimates by three cents on a 62.6% rise in revenues.

Turnaround Stocks: Goldman Sachs (GS)

Goldman Sachs (NYSE:GS) shares have been in a persistent downtrend since March after the initial excitement over higher long-term Treasury yields gave way to a more measured response including healthy concern over the health of the bond market.

Particularly, high-yield bonds, which are poised to suffer losses in response. But with the economy continuing to grow strongly, these concerns are fading now.

The company will next report results on July 17 before the bell. Analysts are looking for earnings of $4.57 per share on revenues of $8.6 billion. When the company last reported on April 17, earnings of $6.95 beat estimates by $1.38 on a 25% rise in revenues.

Turnaround Stocks: Johnson & Johnson (JNJ)

Johnson & Johnson (NYSE:JNJ) shares are set for a lift as the broader healthcare sector lifts up and out of a multi-month consolidation range. Watch for a run at the 200-day moving average, which would be worth a gain of more than 7% from current levels.

The company will next report results on July 17 before the bell. Analysts are looking for earnings of $2.06 per share on revenues of $20.4 billion. When the company last reported on April 17, earnings of $2.06 beat estimates by six cents on a 12.6% rise in revenues.

Turnaround Stocks: Coca-Cola (KO)

Coca-Cola (NYSE:KO) shares have rallied nearly 10% off of their mid-May lows to make a run at the 200-day moving average, moving to the upper end of a multi-month consolidation range rising the tailwind of an upgrade from Barclays analyst at the end of May.

The company will next resort results on July 26 before the bell. Analysts are looking for earnings of 61 cents per share on revenues of $8.6 billion. When the company last reported on April 24, it reported earnings of 47 cents per share beating estimates by a penny.

Get up to 14 dividend paychecks per month from safe, reliable stocks with The Monthly Dividend Paycheck Calendar, an easy-to-use system that shows you which dividend stocks to pick, when to buy them, when you get paid your dividends, and how much.  All you have to do is buy the stocks you like and tell them where to send your dividend payments. For more information Click Here.


Source: Investor Place