We’ve got a veritable smorgasbord for you this week — first, a quick update on one of our Real Money Portfolio stocks, then I’ll take a very quick look at the “Seven Deals” teased by the new Rick Rule Alliance pitch by the Money Map folks, and, finally, I’ll dig into the little hints that Frank Curzio has been dropping about the new gold stock that he says might be one of his best stocks ever if he recommends it to his Curzio Venture Opportunities subscribers. Ready?
So the small update for the week is that CoreSite (COR) raised their dividend. Again. This was a surprise one, though, our favorite data center REIT has been boosting its dividend payout reliably every year, and by huge leaps in many years (averaging 20-30% a year). In my memory, and I’ve followed this one since it paid its first dividend, those increases have always happened near the end of the year. This is the first mid-year dividend raise I’ve noticed from them, and it was meaningful in size (increasing the payout by 12.5%, from 80 cents a quarter to 90 cents).
Coresite’s share price also bumped up a bit on the news, getting to $105 or so and maintaining roughly a 3.5% forward yield. Which is probably reasonable for a strong dividend growth company even if the dividend growth seems destined to slow down, and I do like the company even if I haven’t been willing to add to my position at these all-time high prices… but it makes me a little suspicious that they’re doing this largely unnecessary dividend hike now. It makes me think, actually, that they’re either fearing a takeover bid or are interested in raising more equity capital themselves and want to make sure they get the share price up as high as they can before either of those things happens.
That could just be me trying to add a story where none is needed, it might just be that, as CEO Paul Szurek noted in the press release, that “reviewing the dividend level on a semi-annual basis allows us to more closely align the dividend with performance and return operating cash flow to shareholders according to our policy.”
And, really, regardless of the reason, it’s OK with me — that means, at least, that there’s no immediate reason to worry about their cash flow dropping, and ...