Daily Archives: December 6, 2017

REITS

Buy These 3 High Yield REITs Increasing Dividends in January

To build momentum from your income stocks going into the new year, consider buying into those REITs that should announce higher dividend rates in the first month of 2018. Each month I like to list those real estate investment trusts (REITs) that should announce higher dividend rates in the upcoming months. This knowledge can give you a jump on the rest of investing public, which will be surprised when the positive news is announced.

I maintain a database of about 130 REITs. With it I track current yields, dividend growth rates and when these companies usually announce new dividend rates. Most REITs announce a new dividend rate once a year, and then pay that rate for the next four quarters. Currently about 90 REITs in my database have recent and ongoing histories of dividend growth. Out of that group, higher dividend announcements will come from different REIT companies during almost every month of the year. With the potential of a Fed interest rate hike, the prospects of higher dividend payments coming in January will help to offset any share price disruptions resulting from announcements out of the Federal Reserve Board.

Related: Add This Unique REIT to Your Portfolio for Dividend Safety

My list shows three companies that historically announce higher dividends in January and should do so again this year. Investors will start earning the higher payouts in the new year. But remember, you want to buy shares before the dividend announcement to get the benefit of a share price bump caused by the positive news event. Here is the list of REITs to consider:

Apartment Investment and Management (NYSE: AIV) is a mid-cap sized REIT that owns and operates about 140 apartment communities. About 40% of the company’s properties are in coastal California, with the balance spread across major U.S. metropolitan areas. Last year, AIV increased its dividend by 9.0%. Cash flow growth has been comparable in 2017, and I forecast an 8% to 10% dividend increase in January. The new dividend rate announcement will come out in late January with a mid-February ex-dividend date and payment at the end of February. AIV yields 3.3%.

EPR Properties (NYSE: EPR) focuses its real estate investments in three different business sectors. Primary is the ownership and triple-net leasing of entertainment complexes and multiplex theaters. The second sector is the ownership of golf and ski recreation centers, also triple-net leased. The third sector is the construction, ownership and leasing of private and charter schools. EPR pays monthly dividends, and has grown the dividend rate by an average of 7% per year for the last six years. In 2017 the company was active in both acquisitions and new developments. The new dividend rate is announced in mid-January, with an end of January record date and mid-February payment. EPR currently yields 6.0%.

Welltower Inc (NYSE: HCN) is a large cap healthcare sector REIT. The company owns interests in properties concentrated in markets in the United States, Canada and the United Kingdom. The portfolio is divided into three segments consisting of: Seniors housing and post-acute communities, and outpatient medical properties. Triple-net properties include independent living facilities, independent supportive living facilities, continuing care retirement communities, assisted living facilities, care homes with and without nursing, Alzheimer’s/dementia care facilities, long-term/post-acute care facilities and hospitals. Outpatient medical properties include outpatient medical buildings. Welltower has increased its dividend every year since 2009, with a modest 1.2% increase to start 2017. I expect a 2.0% to 2.5% increase to be announced in January. The announcement will come out at the end of the month, with an early February record date and payment around February 20. The stock yields 5.1%.

Any one of these three stocks would be a great addition to your dividend growth portfolio. You see, it’s not just important to include high-yield stocks that give you income now, but to hold stocks with a strong history of growing their dividend year after year. It’s like getting a raise every… that you didn’t have to ask the boss for.

These are the same kinds of stocks that I recommend as a core part of my high-yield income system called the Monthly Dividend Paycheck Calendar. It’s a system used by over 6,000 income investors right now to produce average monthly paydays upwards of $4,000 in extra income. And it’s helped to solve a lot of income problems and retirement worries.

Quality REITs need to be a core component to your income portfolio. Not only do you get the high yields but you also enjoy rising dividends and as we’ve seen from historical examples, share price gains as an added bonus. There are several best in class REITs in the portfolio of my Dividend Hunter service which features the Monthly Dividend Paycheck Calendar.

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.
Technology

This Is Tesla’s Real Business (It Isn’t Sports Cars)

I have a proposal for Tesla CEO Elon Musk.

Sell, or spin off, Tesla’s money-losing automotive operations (as sleek, shiny and eye-popping as those vehicles are)…

Instead, focus the future of Tesla where the real profit and growth bonanza is for the next decade:

Energy storage.

I know, I know. Sounds boring. Basically, we’re talking about hundreds of phone booth-sized boxes of lithium-ion batteries all lined up in neat rows, and wired up to the power grid.

But it’s revolutionary.

And proving just how revolutionary it is, Musk’s company basically solved Australia’s budding energy crisis in about 100 days.

 Australia’s Power Problem

As I noted months ago (“The Next Big Thing: Lightning in a Bottle”), summertime power blackouts pop up with regularity in the Land Down Under…

  • South Australia: The state’s entire population of 1.7 million residents lost all power for hours on September 28, last year.

 

  • Sydney: Its 5 million residents faced three days’ worth of rolling blackouts in February.

 

  • Victoria and New South Wales: These states, with a combined population of more than 12 million — including Melbourne, the nation’s second-largest city — nearly went dark as well.

The problem?

Literally too much dependence on a good thing — wind and solar power (which now provide around 40% of the nation’s power).

And — thanks to utility regulators’ overly aggressive mothballing of coal-fired power plants — it also left power companies with no way to fill the gap on days of peak demand when everyone has their air-conditioners cranked to the max.

Enter Musk and Tesla. In roughly 100 days’ time, the company deployed 129 megawatts’ worth of its utility-scale Powerpack battery storage units.

Last week, it brought the installation online and tied it into South Australia’s power grid.

Problem solved.

Tesla & Big Batteries

According to a new report from Bloomberg New Energy Finance (BNEF), the global energy storage market is set to rise by an exponential amount, basically “doubling six times over” between now and 2030.

By the way, experts measure electricity storage in terms of gigawatt-hours — a measurement of the output of large power stations.

To give you a sense of what “doubling six times over” means … according to BNEF, the amount of storage in the world in 2016 equaled something less than 5 gigawatt-hours, rising 60-fold to 300 gigawatt-hours by 2030.

We’ll also see a similar trajectory in prices to what’s already come before in wind and solar (and computer chips for that matter). BNEF estimates the cost of these “big battery systems” will drop by more than half (after dropping by 60% already since 2010).

The reason?

Tesla isn’t the only company ramping up battery production with a so-called “gigafactory.” As I’ve noted in recent months, Daimler is building a new $500 million battery plant in Germany. There’s a $3 billion factory being built in Thailand. Others are in the works for upstate New York, Australia, China and elsewhere.

The Future of Tesla

I already have a promising, under-the-radar energy storage stock in the Total Wealth Insider portfolio (and — unlike Tesla — this company is profitable and paying down its long-term debt). You can see why the growth trend for energy storage will be phenomenal for early entrants in this fledgling industry.

That might especially be the case for the future of Tesla. Carmaking is a boom-and-bust business.

Automotive styles change over time. Factories have to be retooled. Hundreds of components need to be built and brought together at the right place and at the right time to build a vehicle.

It all takes lots and lots of constant reinvestment.

Compare that to the energy storage business, where the same basic product can be sold over and over and over again to a legion of power companies all over the world — a $1.4 trillion marketplace.

If Tesla ever figured out that its real business is in storage instead of sports cars … look out.

Regards,

Jeff L. Yastine

Editor, Total Wealth Insider

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Source: Banyan Hill