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The Retirees' Dividend Portfolio: John And Jane's February Taxable Account Update

Matthew Utesch profile picture
Matthew Utesch


  • The Taxable account generated $1,470.14 of dividends in February of 2021 compared with $1,641.99 of dividends in February of 2020.
  • The Taxable account had a balance of $466,994.14 as of February 28, 2021, vs. $401,835.85 on February 28, 2020. The annualized cost basis yield is 4.71%.
  • A total of two companies in the Taxable portfolio paid increased dividends or a special dividend during the month of February.
  • The Taxable account had a cash balance of $36,750.67 as of February 28, 2021, vs. $92,320.07 as of February 28, 2020.
  • The Taxable account had an unrealized gain/loss of $50,884.55 as of February 28, 2021, vs. -$13,997.90 as of February 28, 2020.

The market has definitely seen its fair share of activity going into the end of February and we are seeing a major downturn for some of REITs that have previously been performing well during the COVID recovery. Below are several REITs that are on my watch list or are currently held in John and Jane's Taxable or Retirement Accounts. Not all REITs have suffered (mREITs and apartment REITs have continued to perform well) and it would appear that companies I am going to discuss are part of an industry-specific downturn.

  • Cell Tower REITs
  • Data Center REITs

Cell Tower REITs

Cell tower REITs have been trading at pretty strong multiples over the last few years and this is primarily attributed to the limited number of players and the rollout of 5G. The most recent auction for spectrum highlights just how important cell tower placement will be over the upcoming years. There are three main cell tower REIT stocks available.

  • SBA Communications Corporation (SBAC)
  • American Tower Corporation (AMT)
  • Crown Castle International (CCI)

Each company has something to offer, however, I see SBAC as the better opportunity for those who want capital appreciation which AMT has seen its price drop at a faster pace relative to CCI and now offers ample capital appreciation and offers a dividend rate 2.5x that of SBAC. CCI offers potential for some capital appreciation but the real win for an income investor is the 3.5% dividend yield.

ChartData by YCharts

We are looking to add either AMT or CCI to the Taxable Account and are considering SBAC for one of the retirement accounts. From the images below you will be able to tell that all three companies have seen their P/FFO Ratio drop considerably in the last six months.

SBA Communications - FastGraphs 2021-3.jpgAmerican Tower - FastGraphs 2021-3Crown Castle International - FastGraphs 2021-3

Data Center REITs

We are familiar with

ChartData by YCharts

ChartData by YCharts

ChartData by YCharts

ChartData by YCharts

This article was written by

Matthew Utesch profile picture
Graduated in 2011 with degrees in Pre-Law and Business Administration from Eastern Washington University. Completed my MBA at Whitworth University in May of 2017. Over the last decade, I have worked exclusively in the finance industry. I have acquired specialized knowledge in multiple areas, most notably, Secondary Marketing, Underwriting (specializing in subprime credit), and am currently building an Indirect Lending Program for Canopy Federal Credit Union.Started my first Roth IRA at the age of 16, but began seriously investing closer to 2011 at the age of 22. My investment strategy is largely focused on generating retirement income from dividend-paying stocks. I do not hold any professional investment licenses, but I spend a significant amount of time educating children, teenagers, and young adults on basic finance. I also specialize in cash-flow analysis for those nearing retirement or who are in retirement.

Analyst’s Disclosure: I am/we are long AAPL, ADM, EMR, EPR, EQIX, HON, MCD, O, T, TXN, VFC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article reflects my own personal views and I am not giving any specific or general advice. All advice that is given is done so without prejudice and it is highly recommended that you do your own research. This article was written on my own and does not reflect the views or opinions of my employer.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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