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As promised and with your valued feedback, we are publishing a new version of the article with some changes to make it more engaging. The structure of the article will now include a response from one of you in the community regarding your thoughts on DGI.
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With Donald Trump elected to serve as the next US President, what DGI stock ideas do you think stand to benefit from his next term?
More on Dividend Growth Investing:
The election is over. Finally. The market has certainty, and that certainty came overnight instead of a span of days or weeks, as many had feared. And with that quick electoral result came a quick and sharp reaction in the markets. As of this writing, the S&P 500 (SPY) is up ~4.5% since November 4th. But the 10-year Treasury rate also spiked in the days after the election, which weighed down REITs that are typically treated like bond proxies. The rapid swings in some stocks the day after the election gave me the opportunity to sell or trim some of the winners that rallied to illogically high levels while recycling that capital into some of the losers that plunged to illogically low levels.
With President-elect Donald Trump back in office for a second term, many have been left wondering what stocks are poised to benefit? While REITs have seen a bit of a sell-off due to the market pricing in the likelihood of continued high inflation, one REIT in particular that should benefit is Easterly Government Properties (NYSE:DEA). DEA has been scrutinized in the past, particularly by myself for their elevated payout ratio and stagnant bottom line growth. And despite me continuing to rate them a hold till more growth is apparent, so far this year, things have been looking on the up and up for the REIT. In this article I discuss their latest earnings, dividend, expectations going forward, and why this REIT should benefit from Donald Trump’s second term.
In the world of business development companies, price stability and a strong dividend coverage are extremely valuable. After all, the high dividend yields are meant to attractive investors that are seeking a source of reliable income generation. Morgan Stanley Direct Lending (NYSE:MSDL) operates as a business development company that generates is earning through a portfolio of different debt investments. MDSL is a new BDC that only has a public inception dating back to the start of 2024. The performance since inception has been a bit lackluster, with the price falling by about 2%.
It feels like 2016 all over again. Back then, a wide range of “Trump trades” exploded higher when the former real estate investor defeated Hillary Clinton against all odds. To be honest, this time, I expected it to be different. After all, the odds were roughly 50/50 going into this election, meaning either outcome would not have been a huge surprise. As it turned out, I was wrong. The blowout win of President-elect Trump triggered one of the best post-election stock market days in history, causing Trump trades to skyrocket.
While we have always liked Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN:CA) we have also always exercised prudence with our buy points. On average, 40% of stocks we write about come away with a “hold” and 40% with a “sell”. We did give CAPREIT two different “buys” earlier in the year, but the margin of safety had eroded substantially in early September.
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