The onset of the pandemic in 2020 ignited a number of negative trends, including a dramatic decline in demand for senior housing, given the increased risks of COVID-19 for older generations.Senior housing residents began to move out of these facilities and into the homes of family members, where they believed they were less likely to contract the coronavirus.Some would-be residents postponed moving into senior housing, while others permanently altered their plans. Many facilities implemented temporary move-in restrictions as well to reduce the risk of the virus entering their communities.

This week, Realty Income completed the spin-off of substantially all of its office properties into the newly created Orion Office REIT (ONL), as announced earlier this year.Realty Income stockholders received one share of the Orion Office REIT for every ten shares of Realty Income stock held, with cash received in lieu of any fractional shares.The REIT's intent to spin-off its office properties was made known when the merger with VEREIT was announced earlier this year. Shortly thereafter, we provided details of the merger and our belief that it would have no impact on Realty Income's dividend profile here.As previously noted, offices represented only 3% of Realty's rent but nearly 20% of VEREIT's. Spinning off the office properties of each was a [...]

Yesterday, Compass Minerals surprised investors by cutting its dividend by nearly 80%. This drastic cut is part of a new direction in the company's capital allocation strategy to focus more on growing the business. This strategy shift is primarily driven by the firm's discovery of a significant and sustainable lithium resource identified at its solar evaporation site in Utah. The funds saved from cutting the dividend are expected to be used on developing this lithium site, with production expected to hit the market around 2025.  Lithium is a critical component in rechargeable batteries, which are increasingly in demand with the expanding electric vehicle market. 

Johnson & Johnson announced this morning its intention to separate its consumer health division, which accounts for roughly 16% of sales and includes iconic consumer brands like Band-Aid, Tylenol, and Listerine.The decision to break up the world's largest pharmaceutical conglomerate is rooted in the belief that its business units will have more significant growth opportunities as separate companies where they can more intently focus on their specific customers and markets that have diverged so much through the years.  While this is significant news, Johnson & Johnson will still remain the world's largest healthcare company as it continues on with its pharmaceutical and medical device divisions.