Jump to content
Sign in to follow this  
dydo

REITs

Recommended Posts

Someone issued a command to buy REITs yesterday and looks like it is still ongoing with less "desirable" in health space (i.e. SBRA, OHI) outperforming the ones we hold. UNIT is on fire the last 2 days - up over 10% off the lows of 3 days ago and on good volume.

Share this post


Link to post
Share on other sites

I notice a lot more articles telling REITs are better performers under increase of interest rates and they are a bargain as they selloff for that reason at first. PG how will you manage your dividend on HCN, if you still have it?

I have just two stocks in this play. I look at HCN as follows, My average currently is 57.03, including trading fees. After receiving dividend my cost drops down to 56.16. In my personal opinion, I should not consider buying the stock above this price to improve my return, as that is my cost average now.  The stock is currently trading at 55.79 so as long as it is below 56.16 I am good to add.

If it trades above, my view is to buy a stock which either offers, growth or dividend or is a blend or both. For example, PEGI is a high dividend, low price in comparison. My new HCN price being 56.16 and having $3.48 dividend, I need a stock which has at least 6.23% yield or greater if the dividend is the format. In my opinion, both PEGI and NYLD are fitting the expectation and they are also diversified enough from REITs. 

PEGI has a higher yield likely with dividend seen as tapped out. However, the growth story indicates that PEGI is trading very low now, lower than NYLD. NYLD has a nice growth story and both companies have experienced a shock of CAFD valuation, being a wrong reaction. So my choice is PEGI, as long as HCN and soon to be called WELL, trades above 56.16

 

 

Share this post


Link to post
Share on other sites

I also like TRGP, with its high level of dividend, but I am concerned it may not be so much of a growth story here.

Share this post


Link to post
Share on other sites

I'm OK with holding quality dividend companies (HCN and VTR) as well as more speculative (SBRA and UNIT). I will not re-invest dividend and will take cash instead. I also hold a large position in PEGI (though "only" a half of what it used to be, sold half after qualifying for dividend). My greatest holding is JKS, but I know you do not care about this one.  

It looks like both HCN and VTR are moving up and down at the same level together and both are similar companies (will wait to confirm this next week when HCN reports), so my plan is to flip between them prior to their x-dividend date - since HCN will pay next week and VTR only in April, I plan to move all HCN (WELL) to VTR prior to March 29th, then all VTR to WELL prior to WELL's x-dividend date and so on. Of course my preference is for equity appreciation and taking a gain, but until that takes place, its dividend play.

I do not want to touch anything oil, however am comfortable only with super majors, specifically BP (huge dividend, relative to peers). 

Share this post


Link to post
Share on other sites

I thought Odyd had tried something like this before--buying dividend-yielding stocks sometime before the dividend date, then selling them afterward, in order to buy stocks with the next dividend date coming up--but found out that while that sounds good in theory, it's hard to make money in practice, because the price of the stock will decrease by the amount of the dividend immediately after the dividend date?

Share this post


Link to post
Share on other sites

Correct, but I am not planning to sell after dividend date. I'm planing to flip these two stocks before next x-div date (which is about two months apart) while waiting for PPS to appreciate. I will do it only if correlation between these two stays as it was since I started watching them in January and both are at 5%+ yield. This will allow, while waiting for PPS appreciation in one or both, to get six or maybe even seven dividends instead of four per year. Will do it only if delta between VTR and HCN(WELL) stays at between $3.50 to $4.50 per share, so if HCN(WELL) is $5 more than VTR, I will not flip from VTR to HCN(WELL). Of course if both appreciate to less than 5% yield, I will not flip and may sell out.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.



×