Uncle 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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Uncle Sam as tenant? Two stocks with government exposure – Part I

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 one.

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Buying companies after dividend cuts + new research report

What sounds crazy at first sight, indeed is rather an interesting strategy to think about. Sounds crazy, as almost everyone is talking about higher dividends? Let me make the case for dividend cuts! My next stock idea from my upcoming research report fits exactly into this scheme.

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Time to look at gas + new research report

Energy in general is a hotly debated and controversial topic. But when it comes to natural gas, it can become extreme, especially if you mix in liquefied natural gas – or in short: LNG. For long, I have been sitting on the sidelines regarding this market. But I feel now is the time to not only write a Weekly, but also a research report for my members about it – as a hedge from a European perspective. As a bonus, I estimate a 10% dividend yield to be announced next week from my latest pick.

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A second look at tobacco stocks after BAT’s gigantic write-down

One the most heavily watched and discussed stocks last week was British American Tobacco after it released a trading update. While the headline read relatively okay-ish, on the following pages they admitted to take a hefty 25 bn. GBP impairment on their US operations with the next earnings. While many see this as a non-event due to not affecting cash flows, I’m looking at it differently. I rather feel confirmed with what I wrote earlier in the year about Altria.

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“Everything-resistent” iconic consumer stocks are tanking – but why?

In times of economic or political stress it is always good to have defensive, iconic consumer stocks in the portfolio – at least this “common wisdom” applied in the past. However, during the current market decline which in technical terms was not even a correction (the peak to trough drop was less than 10%), the overall sentiment already showed first signs of a panic. Not only that, the highly praised “defensive” stocks actually lost disproportionately. How come? And was it foreseeable?

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What you should know about ETFs and dividends

Especially stock market beginners get in touch early with ETFs and / or dividend investing, in part thanks to the respective communities and influencing faces. You can see both strategies separately or also in combination. However, a common thing I see e.g. on Twitter / X and YouTube is that these people promote them as being bullet-proof, save strategies. As a risk-focussed investor myself, I am clearly missing this crucial element.

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Why I stayed away from REITs until now + new research report

Real estate investment trusts have been a favored asset class of many due to enabling property ownership without enslaving oneself with mountains of debt and without betting just on one horse. Other factors like liquidity, the ability to sale fractions of your ownership and often great shareholder returns have been other arguments. I was avoiding them on purpose – but there’s a sub-sector that could be interesting just right now.

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Invest in businesses with net cash or net debt?

During the last one and a half decades, it nearly didn’t matter to look at a company’s balance sheet. The reason was quasi non-existent interest rates – a historically unprecedented scenario, not only for the younger generation. Hence, it is no wonder that those who held too much cash in their books even got punished by not receiving any income on their deposits. On the other hand, debt-hungry entities got subsidized. However, the winds have changed. Interest rates are up dramatically. What are the consequences?

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The dice are cast – 3M will have to cut its dividend

My long-time readers know that I have pointed my shotgun at candidates with likely coming dividend cuts. I even made two Weeklies out of this topic, as I am still convinced that dividend cuts will be one of the mega trends of this decade, and a fairly underestimated one! There are several companies where I am seeing massive operating and financial issues. In this latest episode, I am targeting again the famous industrial conglomerate and inventor of post-it stickers, 3M.

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