Kevin Shacknofsky from the team that manages the Alpine Dynamic Dividend Fund (ADVDX) which I own for literally a couple of very small accounts just talked about a name I own personally and for clients and have mentioned a couple times recently; Macquarie Infrastructure Trust (MIC).
He sees great growth for the stock but did not get the chance to say why. I am as favorably disposed to Macquarie's concept and this particular trust as anyone but great growth? I really doubt it. It has spent the vast majority of its public life between $28 and $33 and while I would welcome great growth I don't think that is a realistic expectation.
I would expect (maybe hope is a better word) that the shares will drift higher over time and continue to pay its dividend, maybe even increase it a little over time. Keep in mind it owns toll roads and airport garages.
The idea here is to know, reasonably, what your holdings are capable of doing most of the time. It is unlikely that MIC will be a real mover to the upside; I own it to dampen volatility and of course add yield. If you are looking for other attributes you should probably look for another name.
Proud Member Of
Random Roger
© 2009 | Gadget Theme Blogger Template
Original WPtheme By Blogger Template | Converted By Gadget Lover
| Distributed by eFree Blogger Help
Original WPtheme By Blogger Template | Converted By Gadget Lover
| Distributed by eFree Blogger Help
6 comments:
I owned MIC from inception until they began to overestimate their imput and overpaying, IMO, for infrastructure -- esp. the Illinois Skyway. Then the CFO was removed in June, I believe.
Selling at a modest profit, I have had no regrets.
The parent,MacQuarie Bank of Austrailia, is an excellent investment prospect.
I stll glance at MIC, as it is a higher yielding and tax advantaged security, and see no reason to own it based upon the subpar results to date.
I thought MIC got rid of the vast majority of their toll road assets?
Roger,
Maybe I should of asked this earlier. Is equipment leasing an asset class(computers, big machines, ....). Is there a way to capture this and might it return a nice dividend?
Thanks
3:47,hasty generalization on my part
4:13, I am quite certain there are public companies that that are leasing companies. I have never looked into them so I don't have any names.
Well, there are plenty of REITs that lease real estate (i.e all of the triple net REITs). "O" Realty Income Trust is the classic widows and orphans NNN REIT.
AirCastle, AerCap, and the new Genesis Lease Co all do aircraft leasing. AYR pays a nice dividend.
GMT is pretty much a pure play on Railcar leasing. World leader in that sector. CIT leases anything that moves, and many things that do not.
And of course there are plenty of shipping companies like GSTL or SFL that lease ships. Most of them pay a nice if *very volatile* dividend.
....as the Great Beta Reducer....I'd expect you, Roger to understand...the MIC proponant may be simply talking about "RELATIVE" performance during a time when (shock!) 5% IS the SP500 return....
who knows?
Post a Comment