Is CoreSite's Falling Cash Flow a Problem?

Shareholders should take note...‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

SPONSORED Will America Become Unrecognizable Within 2 Years? The same expert who predicted the dot-com bubble, the 2008 crisis, the 10-year bull market and the exact bottom of the coronavirus crash... Now says that the America you know and see before you is going to change DRAMATICALLY over the next two years. See what's about to happen... and plan accordingly. SAFETY NET What Does Falling Cash Flow Mean for This Perpetual Dividend Raiser? Marc Lichtenfeld, Chief Income Strategist, The Oxford Club Last week, I covered data center real estate investment trust (REIT) Digital Realty Trust (NYSE: DLR). The stock received an "A" rating despite a drop in funds from operations (FFO) in 2020. To find out why Digital Realty received an "A" rating from SafetyNet Pro, click here. What Is SafetyNet Pro? SafetyNet Pro is a groundbreaking tool that predicts dividend cuts with stunning accuracy. With it, you can determine the dividend safety rating of nearly 1,000 stocks. Access to SafetyNet Pro is reserved exclusively for subscribers of Marc's newsletter, The Oxford Income Letter. To learn more about SafetyNet Pro and The Oxford Income Letter, click here now.   That led to a reader asking me to analyze Digital Realty's competitor, CoreSite Realty (NYSE: COR). The company operates 24 data centers in eight North American markets, so it's much smaller than Digital Realty, which has 280 data centers in 20 countries. CoreSite's business has been growing, though not at a particularly rapid pace. Funds from operations (FFO), the measure of cash flow used by REITs, jumped in 2018, and then growth slowed over the next few years. However, this year, FFO is forecast to decline more than 8%. That's an issue. In 2020, CoreSite paid $236 million in dividends for a payout ratio of 92%. So it can cover the dividend. (Note: Because REITs must pay out at least 90% of their earnings in dividends, I'm comfortable with payout ratios up to 100%.) This year, CoreSite's payout ratio is forecast to decline slightly to 91%, giving us just a little more room for error in case FFO is lower than expected. SPONSORED Author of Get Rich with Dividends Is Giving Away His Ultimate Dividend Package FOR FREE! Click Here to Get Marc Lichtenfeld's Ultimate Dividend Package, Including Details on His #1 Dividend Stock... the Safest 9% Dividend in the World... the Top Three "Extreme Dividend" Stocks... and Much, Much More. For Free. CoreSite has raised its dividend for 10 years in a row. It currently pays $1.23 per share quarterly, which comes out to an annual yield of 4.1%. As with Digital Realty, whose one blemish on its dividend safety checklist was forgiven, because of CoreSite's strong dividend-paying history of 10 years with no dividend cuts, SafetyNet Pro will overlook the projected lower cash flow in 2021. If cash flow is in fact lower this year, and if it is forecast to decline again next year, we'll see a downgrade of CoreSite later in 2021. For now, however, the dividend is very safe. Dividend Safety Rating: A If you have a stock whose dividend safety you'd like me to analyze, leave the ticker symbol in the comments section. You can also check to see whether I've written about your favorite dividend payer by typing the company name in the search bar below. On the Wealthy Retirement homepage, you can click on the magnifying glass in the upper right-hand corner and type the company name in the search box (company names work better than ticker symbols in our search function). Good investing, Marc Leave a Comment TYPE A COMPANY'S NAME BELOW   MORE FROM WEALTHY RETIREMENT The Facts Behind America's Debt Problem The Highest-Yielding Stocks With Insider Buying Avoid Companies That Take Liberties With Your Capital Facebook Twitter Email Share SPONSORED David Fessler Called Tesla at $8 (Split-Adjusted). His New 5G Recommendation Could Be Even Bigger... This 5G company has EVERYTHING going right for it: a top-shelf management team... scores of patents... partnerships with ALL the big telecoms... and FOUR straight quarters of revenue growth. Get the scoop here. You are receiving this email because you subscribed to Wealthy Retirement. Wealthy Retirement is published by The Oxford Club. Questions? Check out our FAQs. Trying to reach us? Contact us here. Please do not reply to this email as it goes to an unmonitored inbox. Privacy Policy | Whitelist Wealthy Retirement | Unsubscribe © 2021 The Oxford Club, LLC All Rights Reserved The Oxford Club | 105 West Monument Street | Baltimore, MD 21201 North America: 1.800.589.3430 | International: +1.443.353.4334 | Fax: 1.410.329.1923 Oxfordclub.com The Oxford Club is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis and has been legally reviewed, investment markets have inherent risks and there can be no guarantee of future profits. The stated returns may also include option trades. We expressly forbid our writers from having a financial interest in their own securities recommendations to readers. All of our employees and agents must wait 24 hours after online publication or 72 hours after the mailing of printed-only publications prior to following an initial recommendation. Any investments recommended by The Oxford Club should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. The information found on this website may only be used pursuant to the membership or subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of The Oxford Club, 105 W. Monument Street, Baltimore MD 21201.