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Deep Value Dividend Growth Index Week 37 Update: The Inexplicable Case Of Crashing REITs

Posted On August 9, 2017 2:40 am
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Portfolio Stats:

Portfolio Holdings: 200

Yield: 4.33% (S&P yield 1.91%)
Yield on Cost: 4.39%

Lowest Yielding Holdings:
MercadoLibre (MELI): 0.24%
NVIDIA (NVDA): 0.33%
Shire PLC (SHPG): 0.58%
MarketAccess Holdings (MKTX): 0.67%
Charles Schwab (SCHD): 0.75%
Expedia (EXPE): 0.82%
Nordson (NDSN): 0.84%
McKesson Corp (MKC): 0.86%
Perrigo (PRGO): 0.96%
Dominos Pizza (DPZ): 0.96%

Highest Yielding Holdings:
New Residential Investment Corp (NRZ): 12.00%
Dynagas LNG Partners (DLNG): 11.50%
Golar LNG Partners (GMLP): 11.40%
New Senior Investment Group (SNR): 11.34%
Alliance Holdings (AHGP): 10.72%
Uniti Group (UNIT): 10.61%
Hoegh LNG Partners (HMLP): 9.25%
KNOT Offshore Partners (KNOT): 9.18%
Sprague Resources (SRLP): 9.12%
Global Medical REIT (GMRE): 8.95%

Valuation Metrics

PE: 15.71 (21% below S&P 500)

Price/Fair Value: 0.85

FCF Margin: 18.04% (vs S&P 500’s 21.71%)

Return on Assets: 6.57% (12% below S&P 500 average)

Return on Equity: 18.25% (17% below S&P 500 average)

Average Market Cap: $9.6 billion (89% below S&P 500 average)

Projected 5 Year Dividend Growth: 10.85% (84% above S&P 500 20 year median)

Projected Annual Total Return: 15.24% (68% above the market’s historic CAGR since 1871)

Potential Annual Total Return (assuming valuation regresses to the mean): 19.29% (113% above market’s historical return)

Smallest Market Cap Holdings:
Gladstone Land (LAND): $151.1 million
Global Medical REIT (GMRE): $186.4 million
Jernigan Capital (JCAP): $296.8 million
Landmark Infrastructure Partners (LMRK): $378.9 million
MedEquities Realty Trust (MRT): $379.1 million
City Office REIT (CIO): $381.3 million
PennantPark Floating Rate Capital (PFLT): $458.6 million
WhiteStone REIT (WSR): $501.6 million
Westwood Holdings Group (WHG): $526.9 million
Sprague Resources (SRLP): $594.1 million

Largest Market Cap Holdings:
Apple (AAPL): $833.5 billion
JPMorgan Chase (JPM): $328.5 billion
Wells Fargo (WFC): $262.5 billion
Bank Of America (BAC): $244.7 billion
AT&T (T): $234.6 billion
Procter & Gamble (PG): $233.9 billion
Anheuser-Bush InBev (BUD): $230.3 billion
Oracle (ORCL): $200.9 billion
Pfizer (PFE): $198.4 billion
Novartis (NVS): $197.8 billion

Portfolio Composition: 

Consumer Cyclical:    23.24%
REIT:                            17.10%
Energy:                         15.69%
Healthcare:                  11.61%
Industrials:                   8.74%
Tech:                              6.91%
Consumer Defensive: 6.59%
Basic Materials:           5.38%
Finance:                         3.76%
Utilities:                         0.67%
Telecom:                        0.62%

Largest Holdings:
Helmerich & Payne (HP): 8.70%
L Brands (LB): 6.20%
Kimco Realty (KIM): 4.81%
Shire (SHPG): 3.55%
HollyFrontier (HFC): 3.45%
Golar LNG Partners (GMLP): 2.84%
MercadoLibre (MELI): 2.70%
NetEase (NTES): 2.65%
B&G Foods (BGS): 2.36%
Uniti Group (UNIT): 2.23%

Top 10 Holdings: 39.49%

Worst Performers:
Helmerich & Payne (HP): -8.70%
B&G Foods (BGS): -8.41%
Flowserve (FLS): -7.44%
L Brands (LB): -7.13%
Uniti Group (UNIT): -6.18%
New Senior Investment Group (SNR): -6.15%
Perrigo (PRGO): -5.92%
Shire (SHPG): -5.81%
Brinker International (EAT): -5.17%
Omnicom Group (-4.8%)

Best Performers:
NextEra Energy Partners (NEP): 54.54%
Delphi Automotive (DLPH): 46.75%Tuesady
Unilever (UL): 35.85%
Constellation Brands (STZ): 32.30%
Owens-Corning (OC): 32.23%
S&P Global (SPGI): 30.56%
D.R Horton (DHI): 30.56%
Estee Lauder (EL): 30.54%
Brookfield Infrastructure Partners (BIP): 29.31%
Scripps Network International (SNI): 27.14%

Portfolio Performance:

Portfolio Annualized Total Return: 16.53%
S&P 500: 15.30%
Outperformance (Alpha): 1.23% Beating Market For Last 35/37 weeks, by 8% so far

About author

Dividend Sensei
Dividend Sensei

I’m an Army veteran and former energy dividend writer for The Motley Fool. I currently write for both Seeking Alpha, Simply Safe Dividends, Investorplace.com, and TheStreet.com.

My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams, and enrich their lives. With 20 years of investing experience, I’ve learned what works and more importantly, what doesn’t, when it comes to building long-term wealth and income streams. I’m currently on an epic quest to build a broadly diversified, high-quality, high-yield dividend growth portfolio that:

1. Pays a 4% to 5% yield
2. Offers 9% to 10% annual dividend growth
3. Pays dividends AT LEAST on a weekly, but preferably, daily basis

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