May 8, 2019: APLE, GAIN

Dividend Portfolio

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GAIN

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Table Takeaways

I wrote earlier this year that GAIN lives between $9 and $12, so I’m expecting a slow and gradual depreciation of this stock over the next six months. I only DRIP this stock (meaning I don’t invest any other cash into it), so I hope my theory comes to fruition. Historically, I do not purchase dividend stocks yielding under 7% for my monthly portfolio, so I don’t like to see GAIN trading over $11.50 for long periods of time. I hope they fall back into line after a great run up in price that will cause a gradual sell-off so my perpetual DRIP can buy me some quality shares.

I also wrote last month about my speculative feelings on the Q2 dividend announcement, which has now passed. Theory #2 was the winner, which is exactly what I wanted. Per usual, this stock always comes through for me. I will GLADly take a special dividend in the 2019 environment, but I do hope the price pulls back over the next month so I’m not reinvesting at this stock’s 52 week high. However, I think it is worth the DRIP, if the market continues to rally, the upside potential for GAIN is endless.


APLE

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I never would have thought that APLE would be yielding almost an entire percentage point higher than GAIN, but that has been the case for quite some time now. I’m a little shocked APLE hasn’t rebounded since honestly, this is a pretty safe stock. They will not raise their dividend and they have so much real estate in a world where real estate has been historically safe. I think investors are worried that AirBnB and other competitors will continue to perpetuate the market for hotels, and they have a point. However, I work in an antiquated industry that touches every single human and employs hundreds of thousands of people called the energy industry (I work in wind energy). Big corporations don’t even have the ability to let someone use an AirBnb due to insurance and legal issues. We go through a software interface and there are limited options and those options are Hilton. Additionally, many people have credit cards with awards and perks, mainly working professionals who travel often. I don’t think the hotel industry will be as disrupted by the gig economy as the taxi industry. Additionally, AirBnb is one legislation away from being illegal. Many HOA’s and condominiums are now writing in provisions that keep people from renting their homes. I think this is the world’s longest hold. At this price, I’d be pouring money into it if I wasn’t already WAY too heavy in it. If I had a buy recommendation, it would be this one.


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