Dear Dividend investors,
10 years into this bull market, there are still bargains in the market. I wanted to share some of the names I already have in my Portfolio or intend to build a position in.
1st Target is Brookfield Property partners sticker BPY.
This is an entity of Brookfield asset management that spun off in 2014. At first you might think it’s 7% yield @ 17.59 Us$ is a trap. I believe it’s just one of those stocks the market just forgot to look at.
Brookfield increased the dividend at 6% annually, 9% of compound growth on cash flow from operations. The growth is here to stay for the next few years because this entity owns real estate primarily in commercial retail, industrial, hospitality sectors that it leases under long term contracts. there capacity to recycle capital by selling mature assets and buy new opportunity will profit the acceleration of income on those contracts. So the math is simple, you add 7 % yield + at least 6% dividend growth = 13 % total return in the long run….. I will take that any day given the nature of this stable business. This is the reason why I started a position and will build around 500 units within the next couple of weeks or months depending on the price.
2 nd target Exxon Mobil Corp
Yes I know it is not very original but this company is very well run and if you look at the current price level we are close to a 10 year low with a 4.55% dividend yield. You can certainly expect 4 to 5 % growth in any type of market. Again math is simple that is a close to 10 % total return, I will most likely add to my position shortly. I think the price is to low to ignore if you don’t have a position or want to add on to it.
3rd target is MMM
Yes I know nothing very exciting about this old school Industrial but hey this large cap is so out of favor that the stock plunged from 252$ to 189$ in 1 year. So this gives you a 2.8% yield and a valuation that is much more reasonable, for a company that still has a strong moat and is well managed company. Dividend went from 63 cents a share in 2013 to a 1.36$ currently even if you are conservative you can expect 7-8% growth per year long term.