Very new type of REIT - invests in green energy solutions. Company has a multi-decade history, but only established REIT-dom in 2013. 5% yield currently; history too short to establish much from that. https://finance.yahoo.com/quote/hasi?ltr=1
Several articles on Seeking Alpha over the past couple of years
Does the energy projects that HASI invest in include a land component? I think most of the time the answer would be no. Without appreciating land to offset the depreciation of manmade assets, the FFO/AFFO model does not apply in my opinion. Without adding back depreciation HASI doesn't cover its dividend. I was talking to a rural water board member last year about the water district's declining financial strength coupled with its aging infrastructure. When he said that depreciation expense isn't real and doesn't account, I told him that for perhaps 49 out of 50 years to 73 years out of 75 years that depreciation expense didn't count, but when you have to pay to replace 50 to 75 year old water lines then in that year (or two) all that depreciation expense had been very real. This is the reason that I have never been tempted to buy HASI. Also HASI's CFO hasn't covered its dividend in 2018 & 2017 which is all the more reason to stay away from HASI in my opinion.
Very new type of REIT - invests in green energy solutions. Company has a multi-decade history, but only established REIT-dom in 2013. 5% yield currently; history too short to establish much from that.HASI has been in business for over 30 years as a private company. About 4-5 years ago they went public as a REIT. I was fortunate to recognize and buy into HASI during their first year of their going public It has grown from a $350M market cap then to $1.687B currently and HASI is my largest portfolio position and one of the most profitable for me. as I have been adding all these years Their distributions are structured to be mostly ROC. Very tax efficient.b&w
Hi Buy and Win, I haven’t heard from you in a while. Glad your still doing well and in HASI. You got me into HASI a few years back and I am still in. In fact, it is one of my bigger positions, although I am pretty diversified. I always liked your approach and although I have a much more diversified portfolio, I am looking to increase my I high dividend, high quality stocks. I have 3 distinct portions, a high growth portions, dividend growth, and high dividend portion. I think this gives me good diversification and allows me to redistribute when one portion grows larger than the others. What are your favorites now?And thanks again for HASI, it has done well for me...RandyLong HASI
Randy: Thanks for the kudos. I have 3 distinct portions, a high growth portions, dividend growth, and high dividend portion. I think this gives me good diversification and allows me to redistribute when one portion grows larger than the others.I question the above---And maybe you should also. Lets assume you have three sons and they are growing. Do you buy longer pants for the oldest as he gets bigger because his feet are longer or yo you buy same size pants that don't fit anymore. I believe you are only willing to accept growth by your poor performers, and if they don't grow, your portfolio doesn't grow. I think it is hard enough to pick winners to grow your portfolio, when you sell the overachievers and keep the underachievers. I'm willing to add to the winners and sell the losers. I remain fully invested ---100% Debt FreeAnd Trade very little-I haven't sold One share of anything in the past year or more. I did start building a position in TPL in June or July that has grown to be my 6th largest security. All additions to my portfolio come from excess income received above my needs. As of Friday's close my portfolio is up about 31% Year To Date.Other than adding TPL and a minor amount of RA my portfolio contains the same as before. If you want a list--Just ask --All I own are only 9 securities so it's not a big list. But it is a good list--At least for me, That's why I'm still holding themThanks again-for your support.b&w
Hi B&W, Perhaps you misunderstood. I have 3 portions to my portfolio made up of a number of stocks each. I do not sell the winners and keep the losers, rather I do the opposite. Selling off the losers (or the ones showing the least promise) and keeping the winners (most promise). I do this in the respect of trying to keep the portions of each type of stock consistent. In other words, lately, I have been cutting back a little on my high growth portion as this portion of the market has been red hot this year. I do that by trying to pick the worst ones in that portion of my portfolio and then try to add to the portions of my portfolio that has done worse. Whether it is the dividend growers or the high dividend stocks. My thinking is that different markets favor different types of stocks and this process tends to keep my portfolio pretty balanced over time. So bad markets (like today!) dont hit me as hard..... I believe I am a little more diversified this way and hopefully lower risk. And it doesn’t seem to hurt me much, and I am up about 23% so far this year, not quite at your level but....At least that is the theory. I am also getting closer to retirement and so I have been slowly moving more and more money to the higher dividend category. But back to you. I was very surprised by your statement you are buying TPL recently being that it is a very low paying dividend. I thought you bought exclusively high dividend paying stocks and ones where you thought they would continue to rise. I also recall that you looked for high tax efficiency, MLPs, and high return of capital type stocks (like HASI). Have you changed your philosophy? Are you making so much in dividends that you are not wanting the cash flow (I hope for your sake, this is the reason!) or is there something special about this security. It is a somewhat off the beaten path stock, so that fits what I recall about you... Thanks, Randy, Long HASI.....
Hi Randy:You have good instincts, read me pretty good. When I retires almost 16 years ago I had a limited size portfolio and no outside income except minimal SS. So everything I spent for expenses-Taxes-gifts and whatever else I spent money on had to come from my portfolio. I've been fortunate as my portfolio and income has grown exponentially, way above my needs. I have been concentrating my portfolio to be tax deferred About 95% per year is deferred) so the cash has been compounding over the years and the excess cash has been reinvested into additional shares, which in turn create additional income--It's like a perpetual motion machine In the almost 16 years of retirement The income portion per annum in the past few years is greater than my starting portfolio value back in July 2003. Over the past 10 years I have gifted an amount equal to about 70% of my original cash value. to my children.You asked about TPL. About a year ago my estate lawyer and my accountant suggested I slow down and stay away from income. So I invested in TPL because it was paying a small dividend and looked for growthb&w
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