The 18 stocks in last Friday’s Forbes Dividend Investor portfolio gained an average of 1.33% this week. Three of our real estate investment trusts were the top performance leaders: Monmouth Real Estate Investment (MNR +4.78%), RPT Realty (RPT +3.72%), and American Campus Communities (ACC +2.91%).
Meredith has grown the quarterly dividend 9.7% annually over the past 10 years to its current rate of $0.575 per share, good for a yield of 6.55%. The next payout is yours if you own the stock going into the ex-dividend date this week on Wednesday, November 27.
Stocks in the Forbes Dividend Investor portfolio gained an average of 0.62% last week. The top performer was real estate investment trust Brixmor Property Group (BRX +3.52%), followed by Air Products and Chemicals (APD +3.01%), Cheesecake Factory (CAKE +2.30%), and Kinder Morgan (KMI +2.05%).
The stock yields 3.9%, and the $0.48 in annual dividends is well below $1.12 in free cash flow per share over the past 12 months. Insiders have been bullish with three board members making significant purchases at prices just below where the stock currently trades at $12.33 per share.
The REIT group was hurt by the move higher in long-term interest rates as the yield on the 10-year U.S. Treasury note rose to 1.93% from 1.76% last Friday. The benchmark iShares Cohen & Steers REIT (ICF) ETF fell 3.50% for the week.
The Forbes Dividend Investor portfolio gained 1.03% on average since last Friday. The greatest gains came from Kronos Worldwide (KRO +5.97%), Newell Brands (NWL +4.83%), and three of our real estate investment trusts.
The Forbes Dividend Investor 18-stock model portfolio gained 1.43% on average since last Friday. Our biggest gainer for the week was restaurant chain operator Cheesecake Factory (CAKE +8.89%).
The FDI model portfolio gained 0.96% this week. Our portfolio was helped by the relative outperformance of value stocks over growth stocks. Leading the gains for the week was cell phone and fiber REIT Crown Castle International (CCI +5.40%), followed by diesel engine maker Cummins (CMI +4.62%).
The 18-stock Forbes Dividend Investor model portfolio gained 0.69% since last Friday. The biggest gains came from Cummins (CMI +3.10%), Hanesbrands (HBI +2.97%), and Newell Brands (NWL +2.21%).
WestRock (WRK) violated a 10% trailing stop and is being removed from this week’s portfolio. Replacing WestRock is Cheesecake Factory (CAKE), which has boosted its dividend by 17% per year over the past five years, and the next quarterly payout of at least $0.36 per share is due in mid-November.
The Forbes Dividend Investor portfolio gained 0.86% on average this week. The best performance came from the prior week’s biggest loser, Hanesbrands (HBI +5.44%). Also surging higher were RPT Realty (RPT +3.26%), LTC Properties (LTC +2.91%), and Newell Brands (NWL +2.82%).
Performance leaders were cell phone tower REIT Crown Castle International (CCI +3.03%), nursing home REIT LTC Properties (LTC +2.28%), and pipeline operator Kinder Morgan (KMI +2.20%).
Stocks extended a big rebound from late-August lows as small caps and value stocks asserted rare market leadership, turning the tables on growth stocks that until this month had been the market’s biggest winners in 2019. The bias toward value stocks was highly beneficial to our portfolio.
The 18 stocks in the Forbes Dividend Investor model portfolio gained an average of 2.41% for the week. Our best performer was RPT Realty (RPT +7.23%), followed by the newly-added titanium dioxide maker Kronos Worldwide (KRO +5.84%).
The 17 stocks in the Forbes Dividend Investor model portfolio gained an average of 1.86% for the week. The best performance came from Newell Brands (NWL +6.80%), followed by paper producer WestRock (WRK +5.69%), and diesel engine maker Cummins (CMI +5.10%).
The S&P 500 Index sustained its fourth consecutive week of negative performance, dropping 1.38% for the week just ended. Interest rates tumbled anew, with the yield on the 10-year U.S. Treasury note finishing Friday at 1.53% on Friday.
Hanesbrands produced $5.99 per share in free cash flow over the past 12 months, covering ten times over annual dividends of $0.60 share. The stock trades at major discounts to five-year average valuations and wouldbe $22 per share if it were to reattain its average year-ahead P/E ratio of 12.7.
The S&P 500 Index fell by 1.04% for the week just ended, although retail stocks were brutalized far worse after Macy’s (M) reported worse than expected quarterly results.