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Bonds can beat stocks for fairly long periods. People forget how useful MM funds were during the late 1970s when the prime rate soared to 21.5%. Stocks didn't rise then, and long term bonds were crashing. Money Market funds and short term bank deposits were about the best place to be for several years.
Also people forget that real estate and homes were very poor investments until the early '70s. I bought an apartment building for almost nothing around 1973 (yes I was very young) and made a killing later.
off to work...
True. If you need income bonds, especially munis are the answer. On the other hand, I have a couple stocks that have raised their dividend every year, so the actual income from original investment is higher than the bond income.
My problem with my muni bonds, they all got called of course.
He's saying to buy div aristocrats and no bonds. Perhaps great in theory. But most "real humans" need cash in the bank or in bonds and such to stay the course in tough times. Reality is, most people who are 100% in stocks (and I've seen a few) will panic just as the market bottoms. Ben Graham was emphatic that everyone should be at least 25% in bonds.
I own bonds... mostly munis and have lots of cash in MM funds. Sure I'd be richer if I only owned growth stocks for my lifetime... but that wouldn't work for me. It worked for Buffett only because he was very rich when he was very young. (and even young Buffett had some cash and a paid off house)
So, the moral of that story is, buy good stocks with growing dividends. GENIUS! Someone give me all those stock names for the future please.
BTW, I do wish someone had mentioned to me the S&P 500 Dividend Aristocrats Index earlier. That definitely would be something I would have owned a bunch of by now.
I did buy PKW a while back and it has been outstanding as well. Actually, it looks about identical to NOBL I guess, but the dividend hasn't been as gook.
That article doesn't mention the ultra high yield junk popular with online players, like mREITs, MLPs. BDCs. Nothing there about gimmicky Cornerstone Funds paying "return of capital." Nothing about 8X leveraged stocks for retirement. (LOLOL!)
BTW, I own several of the excellent Dividend Aristocrats mentioned, some for decades.
Here's a clear case for owning dividend stocks instead of bonds
6:44 am ET September 20, 2018 (MarketWatch)
Share
By Philip van Doorn, MarketWatch
Your income can rise, and so can share prices over the long haul
Overvalued stocks and rising interest rates suggest bonds might now be a better investment.
But there's a strong argument that shares of well-established companies with attractive dividend yields are much better long-term investments than bonds are.
Money managers use all sorts of complicated analyses and charts to explain why you should invest in, or avoid, a particular company or class of securities. Hank Smith, co-chief investment officer of Haverford Trust, has laid out a clear case for dividend stocks over bonds. (Haverford is based in Radnor, Pa., and has about $8 billion in assets under management.)
In an interview Sept. 18, Smith compared shares of PepsiCo (PEP) to 10-year U.S. Treasury notes. Pepsi's stock had a dividend yield of 3.25% as of the close on Sept. 18, while 10-year U.S. Treasury paper yielded 3.05%.
If you go with the Treasury notes, "you know every year you will get 3.05%, and at the end of 10 years you are going to get your money back," Smith said. "With Pepsi -- no guarantees, but you can be reasonably assured you will get increases each year in that income stream."
And that's only considering the income from the two investments.
"After a handful of years you are going to be well ahead because of dividend increases, and it is reasonable to expect that at the end of 10 years, you will have more principal from your original investment in Pepsi than you will from your 10-year Treasury that finally matures."
Also see: An easy way for investors to buy protection: Consider value stocks with high dividend yields (http://www.marketwatch.com/story/an-easy-way-for-investors-to-buy-protection-consider-value-stocks-with-high-dividend-yields-2018-09-07)
Pepsi has raised its dividend every year for at least 25 years, qualifying it for inclusion in the S&P 500 Dividend Aristocrats Index .
Of course, "there's no free lunch" for investors, Smith said, because if you hold dividend stocks, you will have to put up with price volatility.
"But if you are investing in Pepsi for the current yield of 3.3%, with the expectation of income growth, you should not be as concerned with near-term volatility," he said. "If Pepsi goes down 15% in value from today's value, your income is not going to change."
In fact, if the shares drop 15% from where you initially buy them, it might be time to increase your holdings, in part because the newly purchased shares will have higher yields.
Long-term stock charts typically show total returns with dividends reinvested. But for Pepsi, if we look only at price changes (assuming we are taking the dividend income), the long-term story is still a good one:
Prices changes for shares of PepsiCo through Sept. 18, 2018
1 year 2 years 3 years 5 years 10 years 15 years
-1% 8% 22% 38% 56% 149%
Source: FactSet
Some of those numbers may not seem particularly impressive, but remember they do not include dividends. Pepsi's clear commitment to increasing dividends provides comfort on the income side and also supports the share price during down markets and over the long term. A comparison to a pure growth stock investing strategy is meaningless.
The importance of raising dividends
Smith explained that his "playground" for stock selection is large-cap companies with strong financials that pay dividends, "with more emphasis on the growth of dividends than higher yield." But he added that for clients seeking income, the firm has a dividend income strategy with a portfolio yield of about 3%.
Two other companies he mentioned that fit the bill are Johnson & Johnson (JNJ), which has a dividend yield of 2.56%, and McDonald's (MCD), which also yields 2.56%.
In the technology space, many of the most familiar stocks -- including Facebook (FB), Amazon.com (AMZN), Netflix (NFLX) and Google holding company Alphabet (GOOGL)(GOOGL) -- don't feature any dividends at all.
But Haverford does hold these very large "old tech" companies for clients: Apple (AAPL), with a dividend yield of 1.34%, Microsoft (MSFT), with a yield of 1.48%, and Cisco Systems (CSCO), with shares yielding 2.78%.
Smith said that shares of companies that consistently raise dividends "are better performers over time than non-dividend-paying stocks."
"The increase of a dividend is the most tangible statement management and its board of directors can make about their confidence in the current and future fundamentals of the company," he said.
One reason is that companies raise dividends carefully because if they are forced to cut the payout, it typically wreaks havoc with the stock price.
Dividend Aristocrats
Looking at the S&P 500 Dividend Aristocrats, the only qualification for inclusion in this group of 53 S&P 500 stocks is that a company has raised its dividend consecutively for 25 years. This means yields aren't necessarily high. Twenty-four of the S&P 500 Dividend Aristocrats have yields of 3% or higher, while 20 have yields below 2%, eight have yields below 1.50%, and four have yields below 1%.
But it turns out that merely raising dividends consistently has been correlated with significant outperformance over very long periods, when dividends are reinvested:
Total return - 12 months through Sept. 18 Total return - 3 years Total return - 5 years Total return - 10 years Total return - 15 years
S&P 500 Dividend Aristocrats Index 17% 54% 82% 245% 409%
S&P 500 Index 18% 58% 87% 198% 280%
Source: FactSet
The Dividend Aristocrats have trailed the full S&P 500 for the one-, three- and five-year periods. However, for 10 and 15 years, their outperformance has been enormous.
One way to play the Aristocrats as a group for growth is the ProShares S&P 500 Dividend Aristocrats (NOBL).
Aristocrats for income
Here are the dozen S&P 500 Dividend Aristocrats with the highest dividend yields, showing price changes (with dividends not reinvested) for various periods:
Price changes (dividends not reinvested)
Company Ticker Dividend yield 1 year 3 Years 5 Years 10 Years 15 Years
AT&T Inc. US:T 5.93% -10% 4% -4% 16% 40%
AbbVie Inc. US:ABBV 4.15% 9% 51% 93% N/A N/A
Exxon Mobil Corp. US:XOM 3.92% 4% 15% -7% 8% 126%
Chevron Corp. US:CVX 3.79% 3% 52% -6% 43% 227%
Consolidated Edison Inc. US:ED 3.57% -4% 23% 41% 75% 97%
Cardinal Health Inc. US:CAH 3.55% -20% -36% 1% 46% 27%
Kimberly-Clark Corp. US:KMB 3.42% -4% 9% 25% 89% 142%
Procter & Gamble Co. US:PG 3.42% -10% 20% 5% 18% 80%
Coca-Cola Co. US:KO 3.40% 0% 18% 16% 72% 111%
Leggett & Platt Inc. US:LEG 3.30% 1% 6% 48% 95% 102%
PepsiCo Inc. US:PEP 3.25% -1% 22% 38% 56% 149%
Federal Realty Investment Trust US:FRT 3.14% 2% -4% 24% 53% 256%
Source: FactSet
Don't miss:Aerospace and defense sector may keep flying high for years to come (http://www.marketwatch.com/story/aerospace-and-defense-sector-may-keep-flying-high-for-years-to-come-2018-09-18)
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(END) Dow Jones Newswires
September 20, 2018 06:44 ET (10:44 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
ABR out today @11.96 Been a great 30% gainer plus Div's Will watch for re entry
ANH-Anworth Declares a $0.14 Per Share Third Quarter Common Stock Dividend
4:04 pm ET September 14, 2018 (BusinessWire) Print
Anworth Mortgage Asset Corporation (NYSE: ANH) announced today that its board of directors declared a quarterly common stock dividend of $0.14 per share for the third quarter of 2018. The common stock dividend is payable on October 29, 2018 to common stockholders of record as of the close of business on September 28, 2018.
About Anworth Mortgage Asset Corporation
Anworth is an externally-managed mortgage real estate investment trust. We invest primarily in mortgage-backed securities that are either rated "investment grade" or are guaranteed by federally sponsored enterprises, such as Fannie Mae or Freddie Mac. We seek to generate income for distribution to our shareholders primarily based on the difference between the yield on our mortgage assets and the cost of our borrowings. We are managed by Anworth Management LLC, or our Manager, pursuant to a management agreement. Our Manager is subject to the supervision and direction of our Board of Directors and is responsible for (i) the selection, purchase, and sale of our investment portfolio; (ii) our financing and hedging activities; and (iii) providing us with management services and other services and activities relating to our assets and operations as may be appropriate. Our common stock is traded on the New York Stock Exchange under the symbol "ANH." Anworth is a component of the Russell 2000(R) Index.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This news release may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon our current expectations and speak only as of the date hereof. Forward-looking statements, which are based on various assumptions (some of which are beyond our control) may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "anticipate," "assume," "estimate," "intend," "continue," or other similar terms or variations on those terms or the negative of those terms. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including but not limited to, changes in interest rates; changes in the market value of our mortgage-backed securities; changes in the yield curve; the availability of mortgage-backed securities for purchase; increases in the prepayment rates on the mortgage loans securing our mortgage-backed securities; our ability to use borrowings to finance our assets and, if available, the terms of any financing; risks associated with investing in mortgage-related assets; changes in business conditions and the general economy; implementation of or changes in government regulations affecting our business; our ability to maintain our qualification as a real estate investment trust for federal income tax purposes; our ability to maintain an exemption from the Investment Company Act of 1940, as amended; risks associated with our home rental business; and our Manager's ability to manage our growth. Our Annual Report on Form 10-K and other SEC filings discuss the most significant risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180914005528r1&sid=cmtx6&distro=nx&lang=en
View source version on businesswire.com: https://www.businesswire.com/news/home/20180914005528/en/
SOURCE: Anworth Mortgage Asset Corporation">
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that's good
in old Roth account
sure hope you're doing this in a tax deferred account
NEWT, out this morning, Div coming soon
Do they plan to rob a bank? They ain't got no cash....
Last Twelve Months as of
06/30/18 12/31/17
(A) 12/31/18
(E) 12/31/19
(E)
Sales (MM) X
464 455 396 340
Growth X
(4.0) (10.9) (12.9) (14.1)
Gross Profit (MM) X
237 232 - -
Margin X
51.0 51.0 - -
EBITDA (MM) X
284 341 310 274
Margin X
61.2 74.9 78.2 80.6
EBIT (MM) X
100 163 156 191
Margin X
21.5 35.9 39.3 56.0
Net Income (MM) X
20 79 10 82
Margin X
4.4 17.4 2.4 24.1
EPS X
0.06 0.33 0.02 0.14
Growth X
(66.7) (12.7) (95.4) 800.0
Free Cash Flow X
(510) (603) - -
Currency: USD Source: Worldscope, IBES
LXP not holding for my kids,looking for a bottom & a rise Lexington Realty Trust Announces Disposition Of 21 Office Assets For $726 Million To Joint Venture
Following the transaction, Lexington's percentage of industrial assets based on consolidated revenue is expected to increase to 60% from 44% at year-end 2018.
*****Not an Advisor,Pro or a barTOUT
Geez! I hope you are not buying some of the stocks you post.
I'll give you a possibly maybe now on Cross Timbers, but this LXP????
I wouldn't touch it with your 10 foot pole. The only good thing I can say about LXP is that it can't go that much lower. There is a very remote chance they turn a profit in '19.
The problem with CRT is the income floats.
CRT
Cross Timbers Royalty Trust declares $0.1247 dividend
Cross Timbers Royalty Trust (NYSE:CRT) declares $0.1247/share monthly dividend, 15.8% increase from prior dividend of $0.1077.
Forward yield 10.32%
Payable Oct. 15; for shareholders of record Sept. 28; ex-div Sept. 27.
See CRT Dividend Scorecard, Yield Chart, & Dividend Growth.
LXP bought shares today @8.16 Lexington Realty Trust Announces quarterly Common Share Dividend
5:00 pm ET September 13, 2018 (Globe Newswire) Print
Lexington Realty Trust (NYSE:LXP) ("Lexington"), a real estate investment trust (REIT) focused on single-tenant real estate investments, today announced that it declared a regular common share/unit dividend/distribution for the quarter ending September 30, 2018 of $0.1775 per common share/unit payable on or about October 15, 2018 to common shareholders/unitholders of record as of September 28, 2018.
Lexington also declared a cash dividend of $0.8125 per share of Series C Cumulative Convertible Preferred Stock ("Series C Preferred Shares") for the quarter ending September 30, 2018, which is payable on or about November 15, 2018, to holders of Series C Preferred Shares of record as of October 31, 2018.
This release contains certain forward-looking statements which involve known and unknown risks, uncertainties and other factors not under Lexington's control which may cause actual results, performance or achievements of Lexington to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to, (1) the discretion of Lexington's Board of Trustees with respect to the authorization of future dividend declarations and (2) those factors and risks detailed in Lexington's periodic filings with the Securities and Exchange Commission. Except as required by law, Lexington undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the occurrence of unanticipated events.
Contact:
Investor or Media Inquiries for Lexington Realty Trust:
"A stock paying 13% dividend, but losing 20%" ... is designed for newbies. Pros don't buy that junk. Buffett never buys that either. The sexy div comes first, the loss comes later. In some cases the total financial collapse comes much later. And usually at the worst time.
BTW, I'm just now reading an advanced accounting book that laughs at the "creative" accounting some MLPs have used. The average retiree is at a huge disadvantage when they Reach For Yield.
NGL not hold forever stock, worth a wait & see at this price Up 7.21 % from friday
I'm not a bottom fisher, and this stock may be great due to its large dividend, but I'm seeing two big resistances it needs to break through. A stock paying 13% dividend, but losing 20% is no bargain.
NGL-Top Buys by Directors: Krimbill's $569.7K Bet on NGL
September 13, 2018, 02:01:28 PM EDT By EnergyStockChannel.com, BNK Invest
Shutterstock photo
The directors of a company tend to have a unique inside view into the business, so when directors make major buys, investors are wise to take notice. Presumably the only reason a director of a company would choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money - maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So in this series we look at the largest insider buys by company directors over the trailing six month period, one of which was a total of $569.7K invested across 2 purchases by H. Michael Krimbill, Chief Executive Officer at NGL Energy Partners LP (Symbol: NGL).
PurchasedInsiderTitleSharesPrice/ShareValue
03/16/2018 H. Michael Krimbill Chief Executive Officer 30,000 $11.22 $336,747.00
08/31/2018 H. Michael Krimbill Chief Executive Officer 20,000 $11.65 $232,905.40
Krimbill's average cost works out to $11.39/share. In trading on Thursday, bargain hunters could buy shares of NGL Energy Partners LP (Symbol: NGL) and achieve a cost basis lower than Krimbill, with shares changing hands as low as $11.07 per share. Shares of NGL Energy Partners LP were changing hands at $11.15 at last check, trading off about 2.4% on Thursday. The chart below shows the one year performance of NGL shares, versus its 200 day moving average:
Looking at the chart above, NGL's low point in its 52 week range is $9.95 per share, with $17.65 as the 52 week high point - that compares with a last trade of $11.15.
The current annualized dividend paid by NGL Energy Partners LP is $1.56/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 08/07/2018. Below is a long-term dividend history chart for NGL, which can be of good help in judging whether the most recent dividend with approx. 13.7% annualized yield is likely to continue.
Click here to find out which other top insider buys by company directors you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
https://www.nasdaq.com/article/top-buys-by-directors-krimbills-5697k-bet-on-ngl-cm1022651
NGL in for 800 shares
https://stockcharts.com/c-sc/sc?s=NGL&p=D&b=5&g=0&i=0&r=1536945305294
Past Dividends
Ex-dividend date Amount Record date Pay date
August 7, 2018 $0.39 August 8, 2018 August 14, 2018
May 4, 2018 $0.39 May 7, 2018 May 15, 2018
February 5, 2018 $0.39 February 6, 2018 February 14, 2018
November 3, 2017 $0.39 November 6, 2017 November 14, 2017
PLYM-Plymouth Industrial REIT declares $0.375 dividend
Plymouth Industrial REIT (NYSEMKT:PLYM) declares $0.375/share quarterly dividend, in line with previous.
Forward yield 9.55%
Payable Oct. 31; for shareholders of record Sept. 28; ex-div Sept. 27.
See PLYM Dividend Scorecard, Yield Chart, & Dividend Growth.
NEWT Newtek Business Services downgraded to underperform from market perform at Raymond James
8:19 am ET August 28, 2018 (MarketWatch)
Share
Print
ABR new 52 week High 11.95
https://stockcharts.com/h-sc/ui?s=abr
FGB First Trust Specialty Finance and Financial Opportunities Fund Declares its Quarterly Distribution of $0.175 Per Share
4:23 pm ET August 13, 2018 (BusinessWire) Print
First Trust Specialty Finance and Financial Opportunities Fund (the "Fund") (NYSE: FGB) has declared the Fund's regularly scheduled quarterly distribution of $0.175 per share. The distribution will be payable on August 31, 2018, to shareholders of record as of August 23, 2018. The ex-dividend date is expected to be August 22, 2018. The quarterly distribution information for the Fund appears below.
First Trust Specialty Finance and Financial
Opportunities Fund (FGB):
-------------------------------------------------------------------
Distribution per share: $0.175
Distribution Rate based on the August 10, 2018 NAV of $6.35: 11.02%
Distribution Rate based on the August 10, 2018 closing market price 10.80%
of $6.48:
A portion of the distribution may be treated as paid from sources other than net investment income, including short-term capital gain, long-term capital gain and return of capital. The final determination of the source and tax status of all distributions paid in 2018 will be made after the end of 2018 and will be provided on Form 1099-DIV.
The Fund is a non-diversified, closed-end management investment company that seeks to provide a high level of current income. As a secondary objective, the Fund seeks to provide attractive total return. The Fund pursues these investment objectives by investing at least 80% of its managed assets in a portfolio of securities of specialty finance and other financial companies that the Fund's investment sub-advisor believes offer attractive opportunities for income and capital appreciation.
First Trust Advisors L.P. ("FTA") is a federally registered investment advisor and serves as the Fund's investment advisor. FTA and its affiliate First Trust Portfolios L.P. ("FTP"), a FINRA registered broker-dealer, are privately-held companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $130 billion as of July 31, 2018 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. FTA is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. FTA and FTP are based in Wheaton, Illinois.
Confluence Investment Management LLC ("Confluence"), an SEC registered investment advisor, serves as the Fund's investment sub-advisor. The investment professionals at Confluence have over 350 years of combined financial market experience. Confluence provides portfolio management and advisory services to both institutional and individual clients. As of June 30, 2018, Confluence managed or supervised $8.6 billion in assets.
Past performance is no assurance of future results. Investment return and market value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost.
Principal Risk Factors: The Fund invests in business development companies ("BDCs") which may be subject to a high degree of risks, including management's ability to meet the BDC's investment objective, and to manage the BDC's portfolio when the underlying securities are redeemed or sold, during periods of market turmoil and as investors' perceptions regarding a BDC or its underlying investments change.
Investing in real estate investment trusts ("REITs") involves certain unique risks in addition to investing in the real estate industry in general. REITs are subject to interest rate risk and the risk of default by lessees or borrowers.
The Fund may invest in a variety of other mortgage-related securities. Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates, and may reduce the market value of the securities. In addition, mortgage-related securities are subject to the risk that borrowers may pay off their mortgages sooner than expected, particularly when interest rates decline. This can reduce the Fund's returns. The Fund's investments in other asset-backed securities are subject to risks similar to those associated with mortgage-backed securities, as well as additional risks associated with the nature of the assets and the servicing of those assets.
Because the Fund is concentrated in the financials sector, it will be more susceptible to adverse economic or regulatory occurrences affecting this sector, such as changes in interest rates, availability and cost of capital funds, and competition.
Use of leverage can result in additional risk and cost, and can magnify the effect of any losses.
The risks of investing in the Fund are spelled out in the prospectus, shareholder report and other regulatory filings.
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA and the Internal Revenue Code. First Trust has no knowledge of and has not been provided any information regarding any investor. Financial advisors must determine whether particular investments are appropriate for their clients. First Trust believes the financial advisor is a fiduciary, is capable of evaluating investment risks independently and is responsible for exercising independent judgment with respect to its retirement plan clients.
The Fund's daily closing New York Stock Exchange price and net asset value per share as well as other information can be found at www.ftportfolios.com or by calling 1-800-988-5891.
http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180813005635r1&sid=cmtx6&distro=nx&lang=en
View source version on businesswire.com: https://www.businesswire.com/news/home/20180813005635/en/
SOURCE: First Trust Specialty Finance and Financial Opportunities Fund
First Trust Specialty Finance and Financial Opportunities Fund
Press Inquiries:
Jane Doyle, 630-765-8775
or
Analyst Inquiries:
Jeff Margolin, 630-915-6784
or
Broker Inquiries:
Jeff Margolin, 630-915-6784
Special dividend this year!! Very nice
Arbor Realty Trust Q2 EPS $0.31 Beats $0.28 Estimate,
Sales $21.411M Miss $21.67M Estimate
8:05 am ET August 3, 2018 (Benzinga) Print
Arbor Realty Trust (NYSE:ABR) reported quarterly earnings of $0.31 per share which beat the analyst consensus estimate of $0.28 by 10.71 percent. This is a 40.91 percent increase over earnings of $0.22 per share from the same period last year. The company reported quarterly sales of $21.411 million which missed the analyst consensus estimate of $21.67 million by 1.20 percent. This is a 52.32 percent increase over sales of $14.057 million the same period last year.
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
ABR Arbor Realty Trust declares $0.25 dividend
Aug. 3, 2018 8:33 AM ET|About: Arbor Realty ... (ABR)
Arbor Realty Trust (NYSE:ABR) declares $0.25/share quarterly dividend, in line with previous.
Forward yield 8.79%
Payable Aug. 31; for shareholders of record Aug. 15; ex-div Aug. 14.
MMLP=Martin Midstream: Sale Of WTLPG A Positive
Jul. 27, 2018 2:20 AM ET|23 comments | About: Martin Midstream Partners L.P. (MMLP), OKE
Michael Boyd
Long/short equity, contrarian, medium-term horizon, mid-cap
MARKETPLACEIndustrial Insights
(8,128 followers)
Summary
Martin Midstream announced the sale of WTLPG to majority partner ONEOK for $195mm, booking a $60mm gain versus what it paid a few years ago.
The struggling high yield firm will lose just $8.5mm in expected EBITDA, receiving a cash infusion it can use to delever its balance sheet.
Given the 5% interest rate on the Revolver, this will be cash flow neutral while delevering the balance sheet materially.
I think fair value here is ~$16-17/share. I'm reticent to pull the trigger just yet - solid work on refinancing could improve outlook.
This idea was discussed in more depth with members of my private investing community, Industrial Insights.
One of the big question marks in my original research on Martin Midstream (MMLP) revolved around the West Texas LPG (“WTLPG”) pipeline. This 2,600 mile common carrier system was set to have a 110kbpd lateral extension run into the Delaware basin, alongside supporting infrastructure. Construction was set to begin sometime this year. This project was set to cost the company just $40mm – perhaps small potatoes to many investors, but the lack of free cash flow after the distribution and basically no access to capital markets raised substantial questions on how this would be funded by the end of 1H 2018. Just forgoing the project was not an option, as because it was a minority owner, Martin Midstream was at the mercy of ONEOK (OKE) who controlled capital allocation decisions for the pipeline.
This all eased earlier this week. ONEOK agreed to buy out Martin Midstream, its sole minority partner, in the West Texas LPG pipeline system for $195mm. The pipeline is natural gas liquids (“NGL”) centric, pulling away NGL from the Permian Basin to Mont Belvieu. Mont Belvieu has more than 2mmbl/d of fractionation capacity – the largest concentration of such assets in the world. This has been a growth area, as the ramp in NGL production from major onshore shale growth areas (SCOOP/STACK, Permian) – available capacity is very tight. Enterprise Product Partners (EPP) controls more than one third of the fractionation capacity there. For emphasis on the bullishness on this area of the market, see Jim Teague from Enterprise Product Partners on the Q1 conference call:
We're also in the process of commissioning our ninth fractionator at Mont Belvieu which is scheduled to be fully operational this quarter. Obviously, fractionation capacity is in high demand and is a key component in our value chain.
I think that context is necessary, given Martin Midstream only expected $8.5mm in proportionate EBITDA contribution from its stake in WTLPG. Put another way, ONEOK paid 23x expected 2018 expected EBITDA. This was a great deal for Martin Midstream, as the company is giving up very little in the way of cash flow in exchange for funding it needs to shore up its balance sheet. It also was a profitable venture, given management only paid $135mm for its stake in this asset in May of 2014 from Atlas Pipeline. Clearly the economics of the WTLPG have changed materially over the past several years as the Permian Basin has taken off, but overall I view this as a great transaction for both parties. ONEOK gets full control of an asset it views as a growth asset for years to come, and Martin Midstream gets to shed assets at triple its current consolidated trading multiple. It also gets to dodge any headaches associated with navigating rate increases; both Martin Midstream and ONEOK recently expressed disappointment in the Texas Railroad Commission decision to not allow higher market rates on this pipeline just a few months ago.
Martin Midstream will still deal with tight coverage on its distribution this year, largely due to weakness in ammonium sulfate. The company booked a one-time write-down of $3.9mm during the recently reported quarter due to mis-estimation of the amount of inventory they carried.
The majority of the decrease was related to a one-time write-down of $3.9 million of our bulk ammonium sulfate inventory at our Plainview warehouse. At the end of Q2, we contracted with a third party to use 3D measurement technology at this bulk inventory location to measure inventory, resulting in this write-down. Going forward, this new measurement system will be done at every quarter end to get a more accurate count of bulk inventory.
I found this highly unusual, given ammonium sulfate generally gets priced in the $100-120/ton range in pure wholesale form. That is a lot of product to go missing, even if this is a buildup of many years of miscalculation and slippage. Analysts unfortunately did not try to dig into this more on the conference call. Perhaps the issue is solved, but it does point to potential problems regarding to reported asset valuations across the business.
Those issues notwithstanding, expect a lot of focus on cleaning up the capital structure in the coming months. $373mm in 7.25% Senior Notes due February 2021 become callable in six months (CUSIP 573334AD1) and perhaps more importantly, Martin Midstream will have to renegotiate its Revolving Credit Facility due March 2020 ($459mm outstanding). Given the bonds still trade incrementally below par, it does not appear there is a lot of coverage there. While I maintain my call that there is only limited upside to the shares given the lack of mobility, I do think those Senior Notes do look attractive for the high yield bond investors out there. While distribution on the common stock is thin, there is quite a bit of fixed charge coverage on those notes. Terrible credit ratings notwithstanding (Caa1 from Moody’s, B- from S&P), I think those bonds are attractive.
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ABR Ut after hrs.last trade $11.78, Earnings next Friday! Have a good weekend all !
Yes they have been taking a beating lately,i usally roll in & out with the Divy
G luck & have a good weekend
NRZ @17.75 yield 11% added a few shares now,took a good hit the last few days!
I really don't believe the midstream are the place to be right now.
SMLP Summit Midstream declares $0.575 dividend
Jul. 26, 2018 5:18 PM ET|About: Summit Midstr... (SMLP)
Summit Midstream (NYSE:SMLP) declares $0.575/share quarterly dividend, in line with previous.
Forward yield 13.41%
Payable Aug. 14; for shareholders of record Aug. 7; ex-div Aug. 6.
CEN sold this morning & added FB Will look for reentry
NGL Energy Partners declares $0.39 dividend
Jul. 24, 2018 5:39 PM ET|About: NGL Energy Pa... (NGL)
NGL Energy Partners (NYSE:NGL) declares $0.39/share quarterly dividend, in line with previous.
Forward yield 12.68%
Payable Aug. 14; for shareholders of record Aug. 8; ex-div Aug. 7.
ABR has been a Beast!
http://stockcharts.com/h-sc/ui?s=abr
GMLP -Golar LNG Partners declares $0.5775 dividend
Jul. 23, 2018 11:43 AM ET|About: Golar LNG Par... (GMLP)
Golar LNG Partners (NASDAQ:GMLP) declares $0.5775/share quarterly dividend, in line with previous.
Forward yield 15.37%
Payable Aug. 14; for shareholders of record Aug. 7; ex-div Aug. 6.
ABR is a nice one.
ABR-($12. price )Arbor Realty Trust Is Maintained at Market Outperform by JMP Securities
8:00 am ET July 23, 2018 (Dow Jones) Print
Ratings actions from Benzinga: https://www.benzinga.com/stock/ABR/ratings
(END) Dow Jones Newswires
July 23, 2018 08:00 ET (12:00 GMT)
Ratings actions from Benzinga: https://www.benzinga.com/stock/ABR/ratings
(END) Dow Jones Newswires
July 23, 2018 08:00 ET (12:00 GMT)
DJ Arbor Realty Trust Price Target Raised to $12.00/Share From $10.50 by JMP Securities
Ratings actions from Benzinga: https://www.benzinga.com/stock/ABR/ratings
(END) Dow Jones Newswires
July 23, 2018 08:00 ET (12:00 GMT)
MMLP got the .50 last time around & should move up alittle before ex div day! imho Yield 14.49 Love it
That's a gutsy bottom fish play. If you've hit it right it will be a goody though.
Personally, I hate trying to guess where the bottom is.
MMLP Martin Midstream Partners declares $0.50 dividend
Jul. 19, 2018 5:25 PM ET|About: Martin Midstr... (MMLP)
Martin Midstream Partners (NASDAQ:MMLP) declares $0.50/share quarterly dividend, in line with previous.
Forward yield 14.49%
Payable Aug. 14; for shareholders of record Aug. 7; ex-div Aug. 6.
Visit the ETF Screener and select the right ETFs for your portfolio
Abr doing great!!
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