Whitestone REIT (WSR)| Daily Alert July 9
Whitestone is a retail REIT that owns about 58 properties with some 5.0 million square feet of gross leasable area, primarily in top U.S. markets in Texas and Arizona.
Its tenant base is very diversified with nearly 1,400 tenants. The top five industries are restaurant & food service, grocery, financial services, salons, and medical & dental.
During the pandemic, the REIT rightly halted acquisitions and development projects, and reduced expenses, as it focuses on improving its financial position and liquidity. The February 2021 dividend increase is a good sign.
Management believes, post-pandemic, investments in acquisitions, re-development, and development projects can drive returns of at least 10%.
At the end of 2020, Whitestone had a debt-to-equity ratio of about 2.1x. Whitestone has no real estate debt maturing in 2021.
Ben Reynolds & Bob Ciura, Sure Dividend Newsletter, suredividend.com, firstname.lastname@example.org, 800-531-0465, July 2, 2021
VICI Properties Inc. (VICI) | Daily Alert July 29
VICI Properties Inc., a real estate investment trust (REIT), focuses on experiential properties. It has one of the largest portfolios of gaming, hospitality, and entertainment destination real estate. This includes the world-renowned Caesars Palace.
Its properties are leased to the big names in the business including Caesars Entertainment, Penn National Gaming, Inc. (PENN) and Hard Rock International.
It also owns four championship golf courses and 34 acres of undeveloped land adjacent to the Las Vegas strip.
VICI’s REIT status requires it to pass through most of its money to its partners or shareholders. The company currently pays a solid 4%+ dividend yield, and shares are up 31% year to date. So, I’d strongly suggest not buying those “sell”-rated casino stocks above. Instead, I’d collect a dividend from VICI since it has a “buy” rating with more diversified risk.
Kelly Green, Weiss Ratings, Weiss Ratings, 1-877-934-7778, weissratings.com, July 22, 2021
Wells Fargo & Company Depositar (WFC-PA) | Daily Alert August 11
Wells Fargo & Company; 4.70% Fixed Rate, Series AA, Non-Cumulative Perpetual; Par $25.00; Current Price $26.14; Current Indicated Yield 4.49%; Call Date 12/15/25 at $25.00; Yield to Call 3.58%; Pay Cycle 3m; Moody’s Baa2, S&P BB+; CUSIP 94988U128
Wells Fargo & Company (WFC) is a diversified, regional-based financial services institution with $1.95 trillion in total assets.
The company has a relatively new management team in place, focused on improving earnings and profitability and strengthening internal controls. WFC’s 4.70% fixed rate preferred is callable on 12/15/25 or any dividend payment date thereafter, at par plus any declared and unpaid dividends.
The company reported 2Q 2021 net income of $6.0 billion or $1.38 per share, topping analysts’ $0.97 estimates. Earnings largely benefited from a $1.6 billion decline in the loan loss provision, as WFC released reserves as expected pandemic- related losses never materialized. Revenue of $20.3 billion was also ahead of analysts’ expectations of $17.8 billion. Dividends on this preferred issue are qualified and taxed at the 15% – 20% rate.
This investment is suitable for low- to medium-risk taxable portfolios. WFC’s senior debt is rated A2 by Moody’s and BBB+ by S&P. Buy at or below $26.35, which represents a current yield of 4.46% and a yield to call of 3.38%.
Martin Fridson, CFA, Income Securities Investor, isinewsletter.com, 800-472-2680, May 2021, August 2021
*Healthcare Trust, Inc. 7.375% A Cumulative (HTIA)
Healthcare Trust (HTA), a REIT, holds a portfolio of medical office buildings, mostly on campuses of hospitals and universities located in the U.S. Not credit rated. Recently traded $25.01 per share. The market yield was 7.4% and the yield to its 12/11/24 call date is also 7.4%.
Harry Domash, Dividend Detective, dividenddetective.com, 866-632-1593, August 2021
*Manulife Financial Corp. (MFC, MFC.TO)
Manulife is Canada’s largest life and health insurance company by market capitalization. It has operations in the U.S. under the John Hancock banner and a large and growing presence in Asia serving the growing Asian middle class.
Manulife reported first-quarter net income of $783 million ($0.38 per share) compared with $1.296 million ($0.64 a share) a year earlier with strong growth in Asia and Global Wealth and Asset Management.
Manulife’s current quarterly dividend is $0.28 quarterly. Over the past five years, the company has boosted its dividend by 9.85% compounded annually.
Canadian dividends in non-registered accounts are eligible for the dividend tax credit.
Manulife is recommended for income-oriented investors looking for stable income stream and the potential for capital gains.
Buy. With a price to book value of 1.04 for the most recent quarter, a forward price/earnings ratio of 7.12, and a nice dividend yield, Manulife is cheap, even after its rebound since last October’s lows.
Gordon Pape, The Income Investor, buildingwealth.ca, 1-888-287-8229, July 2021