Despite not being primarily a dividend investor myself, I have written one or the other time about shares of this asset class. Quite popular among income investors, REITs offer exposure to the real estate market in an uncomplicated way. They come without the drawback of having to concentrate on a few objects due to high capital requirements (usually debt-financed) and the need to manage them. With Curbline Properties, a new stock has started trading some two weeks ago. What’s so special about this company is that it comes with a huge net cash position, uncommon for REITs. Is it worth a look?
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Estée Lauder – after –75% still not pretty + dividend in danger
A common misconception is that lower stock prices are akin to cheaper shares. Without much explanation, it is logical that this can only apply when the underlying business has at least been stable. Otherwise it is possible that a stock even becomes more expensive! While this is not the case at Estée Lauder, despite a 75% drop from its all-time high, the stock is still looking ugly valuation-wise. A decent downside risk remains. On top, the likelihood for a dividend cut or even entire suspension is significant.
Continue readingFlow Traders – it was right to cut the loss
My longer time readers and members will be familiar with the Dutch company Flow Traders as it once was one of my stock ideas (my very first report I published since launching my blog). In late September 2023, now ten months ago, however, I closed this case at a small loss of –10% (including dividends). It was not an easy decision as this was more an unconventional stock idea (basically a hedge against a market crash). Looking back, this was absolutely the correct decision to cut the small loss, because it would be a bigger hole now…
Continue readingHangover: Time to buy Brown-Forman?
Who doesn’t know the saying that quality has its price? While I would not necessarily view Jack Daniel’s Whiskey’s as high quality, the parent company Brown-Forman’s stock for long has been seen and valued by the market as such. Shares seemingly knew only one way: slowly, but reliably up. Despite small growth rates and unlike its bottles on the shelves, this high-margin business’ equity was never really on sale – until recently. Is this finally a once in a decade buying opportunity?
Continue readingThree consumer discretionary darlings I’m not buying (yet?)
Browsing through Twitter / X, I often see people posting about “buy-the-dip” candidates. While this is not necessarily the case for energy stocks (where as my readers and especially members know, I have a positive opinion about), in the recent past more and more consumer discretionary stocks have been presented. The main arguments are always the same – they are cheap(er) now! I have some doubts that it’s time to rush in.
Continue readingCheckmate – more kings to have on the radar for dividend cuts
My longer time readers know that dividend cuts have been one of my favorite topics. It is of high importance for me to ring the bell in order to help investors get more cautious with their investments. There are no risk-free stocks. The same applies to proclaimed “bond-proxy” dividend stocks, no matter which useless title they hold in connection with their dividend series. Today, I’m presenting two more kings I have on my radar for a cut.
Continue readingBurberry – closed at a loss + what to take home
As is with investing, from time to time, there will be losing positions in a portfolio in company to big winners. This is what happened among my ideas for my Premium PLUS members. Last week, I threw out Burberry after I lost patience due to deteriorating fundamentals. Today, I am looking back at how I formed my thesis, what happened in the meantime and I explain why I finally pulled the brake as well as why this decision was necessary.
Continue readingNamibia – the new and better Guyana? + new research report
Although ever since the predictions and paroles have been that the world is running out of oil soon, from time to time big new discoveries have been made. Brazil has vast known reserves that could last for 50 years. Offshore the coast of neighboring Guyana, a reservoir of an estimated double digit billion barrels of oil equivalent is being already extracted. There’s a good chance, Namibia, a country in Southwest-Africa, could become the “next Guyana” – maybe even a better one!
Continue readingIs the world’s largest publicly traded hedge fund worth a look?
Indeed, there is a publicly traded hedge fund. It is not just a small shack, but it currently even has more assets under management (AuM) than Ray Dalio’s Bridgewater and several times more (!) than other famous names like Citadel or Tiger Asset Management. Is a PE of 10x and a dividend yield of 5% with opportunistic buybacks convincing enough to consider this stock?
Continue readingUncle Sam as tenant? Two stocks with government exposure – Part II
While it is not directly investing in the government per se as you won’t have any direct ownership in it (luckily), I’ve found two stocks that are operating in the name of it. I am not talking about defense companies where governments are the sole customers (individuals don’t buy tanks). There are two high-yielding REITs with several government agencies as their tenants. Are they worth a look? Part two.
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