The Goodyear Tire & Rubber Company (GT) | Daily Alert February 13
The Goodyear Tire & Rubber Company (GT) is a leading supplier of light vehicle tires, selling in two distinct markets: replacement and vehicle manufacturers. GT shares ended 2019 down more than 20%, despite a 40% pop off the September lows. Concerns about tariffs impacting global auto sales, not to mention higher raw material costs and unfavorable currency translation, have continued to weigh.
We like management’s ongoing efforts to restructure factories in Europe, modernize infrastructure, reduce headcount and adjust pro- duction volume to higher-margin tires. Over the long run, GT should gain from structurally higher demand for tires in emerging markets, given the rise in new vehicle sales as more people reach the middle class. GT trades for just 7 times NTM estimated earnings, while top- and bottom-line growth should resume in 2020.
John Buckingham, The Prudent Speculator, www.theprudentspeculator.com, 877-817-4394, January 2020
*Brookfield Property REIT Inc. (BPR)
Brookfield Property REIT Inc. (BPR) is one of the publicly traded companies managed by Brookfield Asset Management (BAM). Brookfield has a global presence as a developer, owner, and manager of alternative assets. Brookfield is a Delaware based REIT with shares that are economically identical to BPY units. Dividends paid by BPR are identical in amount and timing to the BPY distributions. BPR shares are exchangeable one-for-one into BPY units.
Brookfield owns 88% of the BAM real estate assets. Those assets total $194 billion in value, spread across the globe. Office, retail, and multi-family are the largest asset classes in the real estate holdings. It is a growth-focused REIT. In 2019, the company sold $2 billion of assets. It invested $1 billion in new developments and $300 million in acquisitions.
Brookfield is an asset manager in which I want to be invested. So, do you.
We are investing in an attractive current yield plus solid dividend growth potential. I expect that Brookfield Property REIT will become a stellar performer in the Dividend Hunter recommendations list.
Important: Remember that we are buying shares of BPR, not shares of BPY.
Tim Plaehn, The Dividend Hunter, https://yn345.isrefer.com/go/cabmdpc/cab, February 2020