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W.P Carey (WPC): A High Dividend Dividend REIT For Current Income

March 23, 2018 – Comments (0) | RELATED TICKERS: WPC

W. P. Carey Inc. (WPC) is an independent equity real estate investment trust. The firm also provides long-term sale-leaseback and build-to-suit financing for companies. It invests in the real estate markets across the globe. The firm primarily invests in commercial properties that are generally triple-net leased to single corporate tenants including office, warehouse, industrial, logistics, retail, hotel, R&D, and self-storage properties.

W.P. Carey is a dividend achiever, which has managed to boost dividends for 20 years in a row.  The most recent dividend increase was just last week, when the Board of Directors increased its quarterly cash dividend to $1.015 per share, equivalent to an annualized dividend rate of $4.06 per share. The attitude towards distributions was summarized quite well by the statement of W. P. Carey's CEO Jason Fox:

"W. P. Carey has delivered consecutive annual dividend increases since going public in 1998. We are proud of our long-standing track record of providing shareholders with stable and recurring income generation across all market cycles,"

In September 2012, this dividend achiever converted from a partnership form into a real estate investment trust. After this transformation, as well as merger with one of its privately managed REIT, dividend growth has been spectacular initially.Subsequently, it to slowed down  and I expect it to be slow for the foreseeable decade.

The company not only invests in triple-net lease properties throughout the world, but it also managed privately held REITs. As a result, its sources of revenues are derived from the stable and recurring rents from those properties, which are usually leased to tenants under long-term leases. Those triple-net leases also allow for rent escalation over time. Under a triple-net lease, the tenant is required to pay all expenditures associated with maintaining and operating the property under lease  [more]



CVS Health (CVS) Dividend Stock Analysis

March 21, 2018 – Comments (0) | RELATED TICKERS: CVS , WBA , RAD

CVS Health Corporation (CVS), together with its subsidiaries, provides integrated pharmacy health care services. It operates through Pharmacy Services and Retail/LTC segments. The Pharmacy Services Segment provides a range of pharmacy benefit management (PBM) solutions. The Retail Pharmacy segment includes retail drugstores, online retail pharmacy Websites and its retail healthcare clinics. This dividend achiever has paid a dividend since 1916 and increased it for 14 years in a row.

The most recent dividend increase was in December 2016, when the Board of Directors approved a 17.60% increase in the quarterly dividend to 50 cents/share. Pending the company's acquisition of insurer Aetna (AET), the board has stopped the share buybacks and dividend increases. While the company is not going to grow dividends every year, because it will focus on debt repayment, I find its valuation compelling enough to give it preference over Walgreen Boots Alliance (WBA).

The largest competitors for Walgreen include Walgreen Boots Alliance (NYSE:WBA), Wal-Mart (NYSE:WMT) and Rite-Aid (NYSE:RAD).

Over the past decade this dividend growth stock has delivered an annualized total return of 6.90% to its shareholders. Future returns will be dependent on growth in earnings and dividend yields obtained by shareholders  [more]



Realty Income Delivers High Yields and Dependable Dividend Growth

March 19, 2018 – Comments (0) | RELATED TICKERS: O

Realty Income (O) is a real estate investment trust, which invests in commercial properties. The REIT owned 5,172 properties at the end of 2017, most of which were single-tenant ones. Realty Income has a weighted average remaining lease term (excluding rights to extend a lease at the option of the tenant) of approximately 9.50 years. These are triple-net leases, where the tenant pays everything from taxes to maintenance on the property, while the landlord like Realty Income collects rent that escalates over time. It is a pretty sweet deal, provided that you can purchase great locations at attractive valuations.

I analyzed the REIT using the guidelines listed in this post. The guidelines include focusing on:

ValuationsFFO trendsOccupancyTenant ConcentrationStreak Consecutive Annual Dividend Increases

Realty Income is a dividend achiever which has raised dividends for 24 years in a row. The REIT has a strong track record of paying dividends monthly, and raising them several times per year. It is the Golden Standard of Triple Net Leases. The company usually raises its monthly dividends every quarter by a little bit, which amounts to a respectable year-over-year raise. The latest raise was just last week, as the monthly distribution was boosted to 21.95 cents/share ( or $2.628/share annualized). This was the 96th dividend increase since Realty Income's listing on the NYSE in 1994. The new dividend is 4% higher than the dividend paid during the same time last year  [more]



Clorox (CLX) Dividend Stock Analysis

March 15, 2018 – Comments (0) | RELATED TICKERS: CLX

The Clorox Company (CLX) manufactures and markets consumer and professional products worldwide. It operates in four segments - Cleaning, Household, Lifestyle and International. This dividend aristocrat has paid dividends since 1968 and has increased them each year since 1977.

Last month, Clorox hiked its dividend by 14% to 96 cents/share. This was an accelerated declaration of the company's dividend increase, which typically takes place in the month of May.

Over the past decade this dividend growth stock has delivered an annualized total return of 11.70% to its shareholders.  [more]



Four Dividend Growth Stocks Working Hard For Their Shareholders

March 12, 2018 – Comments (0) | RELATED TICKERS: CL , QCOM , GD

As part of my monitoring process, I review the list of dividend increases every week. I use this list to check for dividend increases for companies I own, as well as monitor companies I am interested in researching at the right valuation.

I narrowed the list down to focus only on companies that have rewarded their shareholders with a dividend raise for at least ten years in a row. I want to focus my attention on companies that have managed to grow dividends over a full economic cycle. I also review each company, in order to determine whether past dividend growth was sustainable, and it came mostly from earnings growth. I am not interested in companies that grow dividends by mere expansion of the dividend payout ratio, while their earnings per share stagnate.

Last but not least, I look for an attractive entry valuation. Even the best company in the world is not worth buying at an inflated price. As a result, I try to avoid purchasing companies above 20 times earnings.

The companies that raised dividends over the past week, and met the above criteria include  [more]

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