TS2B: Tech Stocks 2 Buy, Dividends to Build On Edition with Vornado Realty Trust 12.21.20

Good morning all you Cyberpunks out there and welcome to the BCB Cyber Series that takes on the Tech stocks that can provide the cyber-fuel we need to pursue our digital wealth passions.

Today we are tackling those big dividend payers that can add passive cash flow to our portfolios. As we dig for the cyber-fuel we need, we are always working to make sure the best of the best, those monster companies in tech, can form a key portion of our balanced portfolios.

For Dividend Payers, BCB Cyber is always looking for a forward annual dividend yield of over 3% as our key, defining characteristic. Better yet, we are looking for great tech companies we can build on overtime, delivering consistent value and technological prowess, not to mention a little cash on the side.

A Unique Play on Real Estate with a Technological Twist

One of the biggest names in the biggest markets of real estate, Vornado Realty Trust truly separates itself from the pack with a unique set of holdings that often emphasize bringing technology into daily life. Better yet, they do so with a current yield of 5.55%.

Vornado is a best-in-class real estate company holding incredible assets in the cyberpunk’d, corporate-dominating landscapes of New York City, Chicago & San Francisco.

In doing so, Vornado holds real estate in the most desirable, growth centric areas around the United States.

Before we dive too deep though, we strongly advocate that we don’t act solely on anyone else’s opinion, even ours! Make sure we are all thinking for ourselves as self-definers and making our own decisions. In the end, the responsibility is on each one of us as individuals. So decide wisely!

BCB Cyber: Dividend Payer Edition on VNO

Jumping right in the BCB Cyber way, we cover 3 quick pieces of important information so we can get moving on our day. First, we tackle the story to find out who and what the company is, second, we look at the numbers both positive and negative, and finally we discuss our position on the stock.

This is TS2B, Tech Stock to Buy, Dividend Payer Edition, and this week we are going to take on Vornado Realty Trust, the New York City Real Estate powerhouse is the industry leader in sustainability policy that has been on the NYSE for nearly 60 years.

1 – STORY

Owning/operating over 23 million square feet of LEED-certified buildings and receiving the Energy Star Partner of the Year Award, Sustained Excellence 2019, the story for Vornado Realty Trust (VNO), is one built on growth in the strongest urban markets in the U.S. with a commitment to sustainability and innovative technology in energy management.

Technological advancement in sustainability has led to a number of innovative features for tenants including web portal interfaces allowing for direct and more accountable management of environmental systems. The ultimate goal of being sustainable spaces.

Going the extra mile no one else goes, Vornado Building Management Services is the leader in this industry… as their site advertises, “(w)e hold more green certifications than 99% of industry peers. Our dedicated Sustainability department, with LEED AP O&M certified staff, proudly partners with leading green organizations to ensure that our BMS Green Clean℠ program exceeds industry standards.
At BMS we don’t just talk the talk.” BMS is a wholly-owned subsidiary of VNO.

Don’t just rest on these laurels though, because there are so many more…

In addition to this standard of the ultimate quality in product, VNO integrates the latest in technological art experiences as a growth driver. TheMart space in Chicago is a new defining element in the world of urban architectural stylings. Bringing the fusion of architectural art to digital art forms from renowned artists, the space is the largest permanent digital art projection in the world!

The best part of this for us lowly investors, however, is the current price of the stock. As the man said, “the time to buy is when there is blood in the streets.” Perhaps there is no better personification of this in the markets today, when embroiled in global economic standoffs and then the current global health issues, real estate in NYC bears the brunt of all these issues the last few years and it shows in their stock price.

The time is definitely now though as insiders have been buying up shares slowly and under the radar already.

2 – BY THE NUMBERS

Turning to the numbers now, BCB Cyber loves to follow five specific metrics: Revenue Growth, Forward Price to Earnings Ratio, Return on Assets, Operating Margin, and Debt Considerations.

We see… A solid and stable revenue profile…

A value proposition in the current Forward P/E of 34.36, while it may not seem like it compared to the broader market, within property managers it is within range of their 33.26, and compared to itself it is historically a better deal at nearly half of the previous cost; Forward P/E was over 60 in December 2019. Even more significant is the fact that since we are talking real estate in prime markets with quality dividends, Price to Book in the most recent quarter of 1.26 represents a deep value to the value of the assets of this company when compared to itself last year as well!

A Solid to Strong Operating Margin, and a quality return on Assets… Given 2020 we’ve had, where markets have been incredibly tough rents, these are incredibly encouraging results for the last twelve months.

The balance sheet also bears the need for a watchful eye as the debt ratio is a bit high…

However…

We did see a balanced cash position with repayment of debts on par with past activity and a solid ending cash position.

In addition to our straight 5, we’ve got a few extra this week. Analysts have also demonstrated an ebb & flow feel for this stock but looks to be turning bullish once again. Our time for investment may be waning!

Finally, as a dividend payer, BCB Cyber loves to see the over 3 percent forward annual dividend yield and VNO currently has a yield of 5.55% as seen in the introduction to this post and a Forward Current Yield of 5.77%.

3 – THE BCB CYBER TAKE

As of this morning, on 12.21.20, our own portfolio has a position of 1.50% with an average cost of $34.29 but with this morning’s drop just now (7:12 AM MST) to below $36 we are looking to buy again and build! This is definitely a dividend payer worth buying at the right price and one that BCB Cyber believes to be the right fuel for the fire!

Remember, we are just like the masses, struggling to make ends meet and build our future. So, we start building and keep doing our homework. This is just what we need to start us on our journey toward cyberizing our lives. Remember too, never place a market order, only go to the LIMIT! Get exactly the price we set for ourselves!

Remember, as always, think for yourself, do your own homework, and cyberize your life with the best in disruptive tech. Learn more in our Wealth Section and dive deeper into Establishing the Baseline on BCB Cyber.com!