REIT Industry Table Displays Yield Averages
- “I Prefer Income” program provides many features to enhance the visit.
- One feature is “Industry Averages”. Just click on yellow feather.
- Introducing “Industry Yield Average” and 1 Industry with high yield average.
This article was written by Richard Hill / I Prefer Income!
Each of the “I Prefer Income” programs have some great features that are built into them. I consider the “Compare and Rank” and “Filter securities” programs as my 2 favorite and most useful, but there are others that are also very important, including all the yellow clickable cells that respond with pop-ups of:
- stock charts
- payout graphs
- 5 years of dividend history
- 5 years and both GAAP and Non-GAAP earnings history
There is one feature that goes under the radar that I wanted to highlight with this article. It is the Industry Average feature that is displayed at the beginning of each industry group. It reports the name of the industry, the number of companies in the industry and the average yield of companies within the industry. It ends with our signature feather. The image below provides an example of one industry group in the REIT program.
(Table 1, Source “I Prefer Income”)
I drew a red line to show the industry group and the yellow feather. Once you click on it, you will see the following table appear.
Table of Industry Yield Averages
(Table 2. Source, I Prefer Income)
Table1 provides a list of industries within the REIT program. It also lists the number of companies and the average yield of each industry. This table provides a quick look at the companies and industries within the program so that the investor is aware of overall numbers and yields. From that view, it might allow us to focus on specific industries.
From table 1, we can see that Retail – Malls has 4 companies with an average yield of 17.62%. We have all read of the issues with malls and the reasons for the high yields. Some may want to shy away from this industry while others may zero in to see if there are any opportunities.
The second highest yielding industry is Prisons. If you are not aware, many are concerned that if Democrats take control of the federal government in the next election, they could end some or all the contracts with private prison management. That appears to be the main reason for prices to drop and yields to increase. However, many feel that Republicans will continue to maintain control and/or that even if Democrats were to take control, they would not be able to end the contracts as fast or as much as some fear. Please note that there is also concern that individual states like California could also take action to stop using private prison management companies.
With that said, Table 1 displays the 2 prison companies for your review.
(Table 3, Source “I Prefer Income”)
The stocks are grouped into 4 important financial areas: Dividends, Earnings, Payout Ratios and Debt Ratios. These metrics are highlighted with different colors and provide a great first review of the issues and lays the foundation for further analysis. When I compare the 2 companies, I do see similarities and differences. Prices and yields are comparable with GEO getting the nod on yield.
- both have been profitable the last 5 years and 5 quarters,
- the 2 payout ratios are similar and are in good shape,
- P/E and Price to Non-GAAP Earnings (P / NG-E) are low and similar
- both are close to the 52-week lows
- both issue 1099
- CXW has dividend growth of -5.26%, while GEO has a positive 2.82%. CXW cut dividend from .54 to .42 in late 2016.
- GEO is designated as a Dividend Diamond because they have increased their dividend 8 years in a row.
- CXW has earnings growth of negative -2.50%, while GEO reports positive 3.49%
- GEO has higher debt ratios than CXW. Both are significantly higher.
There are some very good things about both companies; however, there is lots to consider. The economy, politics, and the individual metrics of both companies. We all know it is difficult to find solid companies that have high yields with decent metrics. There have been recent articles from SA authors that should be checked. Here is one article that can be read from Jussi Askola. I would also recommend reading the last 1 or 2 quarterly reports.
Here is link to CXW last Q report
Here is link to GEO last Q report
One final note: “I Prefer Income” is looking for a person who has the knowledge and skills to write investment articles (focus on income) that are publishable on Seeking Alpha. Contact Rich Hill at firstname.lastname@example.org
Thanks for reading. I hope you take this opportunity to login and check out the 4 programs we have, including Preferred & ETD Securities, REITs, Dividend Diamonds 25+, and the MLP / Midstream program. If you are not a member, please consider joining. There are many benefits and the PRICE IS FREE. Here are 4 links that are available.
REIT Program video: Click Here.
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Thanks for reading.
Disclosure. I own both CXW and GEO