The drop in bond yields helped several of our real estate investment trusts like Monmouth Real Estate Investment (MNR +2.60%), American Campus Communities (ACC +1.11%), and Hersha Hospitality Trust (HT +0.85%).
The 16 stocks in last week’s Forbes Dividend Investor portfolio gained an average of 1.16% for the week. Our best weekly performer was the portfolio’s most recent addition: women’s clothing retailer Cato Corp. (CATO +6.93%).
The Forbes Dividend Investor portfolio gained an average of 1.91% for the week. Our best weekly performers were hotel REIT Hersha Hospitality Trust (HT +6.17%), Air Products and Chemicals (APD +4.70%), master limited partnership Phillips 66 Partners, L.P. (PSXP +4.52%), and RPT Realty (RPT +3.44%).
We are adding another stock to the Forbes Dividend Investor portfolio: Charlotte, N.C.-based Cato Corp. (CATO).
We are adding Dallas, Tex.-based Brinker International (EAT) to the Forbes Dividend Investor portfolio.
Among declining stocks, six of our holdings (TPR, HTBK, ETH, MERC, KSS, CMI) violated 10% trailing stops this week, and it is my risk management policy to sell stocks that have declined on a dividend-adjusted closing basis by more than 10% since the highest closing price since we’ve owned it
Utilities were strong as interest rates tumbled. American Electric Power (AEP +3.65%) was a bullish bright spot this week, and so was Air Products and Chemicals (APD +2.93), which beat earnings estimates with its quarterly report on Friday. No stocks violated 10% trailing stop loss levels.
The Forbes Dividend Investor model portfolio gained an average of 2.55% for the week, with the biggest advance coming from Mercer International (MERC +11.91%). Also posting above-average performance were Tapestry (TPR +5.32%), Newell Brands (NWL +5.30%), and American Electric Power (AEP +4.47%).
It’s a lot more than just a box, it’s packaging as a service.
Hersha Hospitality Trust (HT) is a REIT that owns 48 upscale hotels with 7,644 rooms. Revenue should grow 2% to $540.4 million, with funds from operation rising 7% to $2.15 per share, giving Hersha a 6.3 price/FFO multiple, 25.3% below the five-year average multiple. Insiders are bullish, too.
This week’s two worst performers are being removed this week from the FDI portfolio because they closed more than 10% below their highest closing price since we’ve held them: publishing and television station owner Meredith Corp. (MDP), and titanium dioxide maker Kronos Worldwide (KRO).
Last week’s new addition, Ethan Allen Interiors (ETH +1.94%) was the best performer, followed by Mercer International (MERC +1.75%), and Starwood Property Trust (STWD +1.31%). The biggest loser was Meredith Corp. (MDP -5.00%), which remained above a 10% trailing stop despite the steep decline.
The S&P 500 Index notched its fourth straight week of gains and is now up 12% since the first week of October. Value stocks caught a lift, which helped the undervalued dividend-payers in the FDI portfolio to exceed the market’s weekly return, with a big boost from owners of pipelines.
“Give the future, not presents.”
Our performance leader was newly-added forest products company Mercer International (MERC +3.97%), followed by Phillips 66 Partners, L.P. (PSXP +3.66%), Heritage Commerce Corp. (HTBK +3.00%), Kinder Morgan (KMI +2.28%), and Tapestry (TPR +1.61%).
We are adding three new stocks to the FDI portfolio, each of which have an ex-dividend date this week.
Cat lover? New plant parent? Fortune seeker? Traveler? We’ve got the perfect plant for all.
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.
No more shopping blindly. It’s time to question your whole approach to holiday gifts.
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.