An uneventful week for 2CHYP
There was relatively little fundamental news concerning 2CHYP’s holdings which is probably a good thing. Exciting investments require news-flow to keep investors interested, but deep value REITs with strong cashflows are content to just sit there collecting rent. The higher passive yield of 2CHYP stocks compared to the broader market or compared to the REIT index means we win by default. Every day in which nothing happens, we come out just slightly ahead. The slight edge compounds upon itself as the dividends are reinvested. 2CHYP now has a yield on initial capital of over 10%.
As long as nothing goes wrong, this compounding can continue. We like quiet weeks. Nothing goes wrong in quiet weeks and the compounding continues uninterrupted.
In order to keep the dividend growth engine running, we need to invest in fundamentally strong stocks. For this reason, we continually analyze each of our holdings and we have shared summaries of our analysis in the portfolio analytics section of 2CHYP. All current holdings now have a summary page live on the website. Please check it out at your convenience.
On the docket
We are giving strong consideration to adding Farmland Partners (FPI) to the portfolio. Recent events have taken the market price down as much as 40% with a bit of recovery yesterday. We see these events as non-fundamental, meaning FPI has gotten much cheaper relative to its intrinsic value.