I got paid today. Woo hoo! VER paid out their $0.1375/share
dividend which means I got $55.00 cash money out of my 400 shares. Awesome.
This is a highly anticipated and very welcome dividend. I’ve
chronicled my now year-long roller coaster with this particular stock already,
so I won’t rehash that here. Unfortunately this income represents only a 5.85%
invested yield vs a 6.63% ($8.29 share price at time of writing) market yield,
but that is a hell of a lot better than 0% yield which is what this stock has
been paying this year so far. So I’m behind the market a bit, but that is still
in terms of a relatively short time frame (only 1 year). If I have any hope for
the invested yield beating the market any time soon, it will likely have to be
a result of share price appreciation instead of dividend raises. The company is
still balancing out its finances and lowering its debt. I believe those moves
are necessary, and I approve of them, even though it will likely come at the
cost of a temporary growth hiatus.
But with that being said, the price/FFO is extremely low, so
the share price has a lot of upside if investors can put the dark history behind
them and trust management again. I would much prefer to gain invested yield
through dividend increases rather than share appreciation, but I’ll gladly take
what I can get.
All-in-all I still have to admit that this wasn’t a good
investment, but it’s turning itself around, and is at least looking like a not
bad investment….which is something.
In other news:
As I suspected it would, Eaton Vance’s (EV) latest dividend
announcement included a dividend increase today. The 4th quarter
dividend of $0.265/share is payable November 13 to shareholders of record on
October 30, 2015. That represents a 6% increase over the previous quarterly
dividend of $0.25/share, and it also represents the 35th consecutive
year with a dividend increase.
I am a little disappointed with the size of the increase,
but I understand they’re investing a little more than usual in “capex” right
now to develop their NextShares boondoggle which will hopefully lead to a lot
more future income from fees. In my investment thesis I based my fair value of
$50/share on an 8% DGR. A 6% DGR would imply the stock is overvalued. Over the
35 years of increases, they’ve averaged an 18% annual DGR. So this is a “down
year”, but it’s a marathon not a sprint. I’m pretty sure it will pick back up
again. And to keep it in perspective, a 6% raise for doing nothing is a pretty
good deal no matter how you look at it.