Shares of Franklin Resources (BEN) are down 25% since March 1, significantly underperforming the S&P 500 during that period and pushing Franklin's dividend yield near an all-time high of 7%. Since we published our last note on Franklin in February reviewing the firm's $4.5 billion acquisition of Legg Mason, the coronavirus pandemic has taken the world by [...]
STORE Capital (STOR) is a triple-net lease REIT with a highly diversified portfolio of tenants that operate in 49 states and over 110 industries. No single tenant accounts for more than 3% of revenue. STORE hasn't provided an update to investors since coronavirus-related shutdowns began in earnest in late March, making it challenging to assess [...]
Johnson & Johnson (JNJ) on Tuesday reported first-quarter results and, unlike many of its peers which have withdrawn guidance, provided investors with an update on management's financial expectations for 2020. First, the dividend will remain safe and growing. Management announced plans to raise J&J's dividend by 6.3%, marking its 58th consecutive year of increases. The company's diversified [...]
On March 20, we published a note on Main Street (MAIN) explaining why we believed its regular monthly dividend still appeared safe despite the stock's 14% dividend yield at the time and the looming challenges expected from the coronavirus pandemic. This morning Main Street (MAIN) provided a business update and confirmed that its regular dividend is expected to remain [...]
What is a landlord to do when many tenants, all at once and to no fault of their own, can't operate their businesses and are strapped for cash? This is the question facing Realty Income (O), whose dividend, having never experienced a cut since the firm's founding in 1969, is under its greatest test ever. [...]
The coronavirus pandemic is disrupting many industries in the short term, including senior housing and skilled nursing. National Health Investors (NHI), a healthcare REIT, has high exposure to these markets. Senior housing accounts for nearly 70% of NHI's rental revenue, and skilled nursing facilities contribute another 27%. Source: NHI Q419 Supplemental Information Based on our [...]
The coronavirus pandemic is disrupting many industries in the short term, including senior housing. Welltower (WELL) generates over 60% of its net operating income, or NOI, from this industry (primarily senior apartments, independent living, and assisted living). About two-thirds of the REIT's exposure to senior housing comes from properties Welltower runs directly by partnering with [...]
On March 20, we published a note detailing actions that TJX was taking to strengthen the firm's financial position in the wake of nationwide store closures. One somewhat surprising component of TJX's plan was to reevaluate its dividend, which the retailer has increased every year since going public in 1987. About a week later, the company filed [...]
On April 8, Starbucks (SBUX) provided a business update in response to the coronavirus pandemic. The company's board of directors recently approved Starbucks' next dividend, which will be paid in May, and management confirmed that they do not anticipate reducing the dividend going forward despite temporary store closures: To further enhance our financial flexibility, we have also [...]
On April 8, MSC Industrial (MSM) reported earnings that were better than feared and voiced support for the dividend. Here's what Treasurer John Chironna said on the conference call: Turning to our ordinary dividend. We have ample liquidity to continue running the business and paying the current level of our dividend in all but the most severe [...]
On April 7, AT&T (T) provided a brief financial update on its business in light of the coronavirus pandemic. Management reiterated their confidence in AT&T's dividend, issuing the following statement: As it has for the past 36 years, the company looks forward to continuing to pay a quarterly dividend to shareholders. On March 27, the Board of [...]
Urstadt Biddle Properties (UBA) owns over 80 neighborhood and community shopping centers located in the suburbs surrounding New York City. The small-cap REIT has paid uninterrupted dividends since its founding in 1969 and increased its dividend for 26 consecutive years. However, the coronavirus pandemic poses arguably the biggest challenge Urstadt Biddle has ever faced, creating [...]
Exxon Mobil (XOM) announced today plans to reduce its capital expenditures by 30%, slash cash operating expenses by 15%, and lean on its balance sheet to preserve the dividend. The company's CEO Darren Woods explained his perspective on the dividend during his interview with CNBC: A lot of our shareholders are retail shareholders, people who depend on that [...]
As we discussed in our November 2019 note, Ryder (R) wasn't firing on all cylinders prior to the coronavirus pandemic. The company's largest segment, Fleet Management Solutions (61% of revenue), provides vehicles, maintenance, and related services to businesses that need a fleet of trucks to move products to their customers. About two thirds of the segment's [...]
Genuine Parts (GPC) distributes automotive parts (57% of sales), industrial parts (34%), and business products (9%). While these segments are each classified as "essential" businesses and have remained open, the coronavirus pandemic has significantly affected the market conditions across Genuine Parts' operations. Fewer miles are being driven (reduces auto repairs), cyclical industries (oil & gas, [...]