perhaps with all this recent noise about Syria some investors might run to reits, like o just hoping Syria won"t affect o to the down side so , my question is, is o a safe place during troubling times, or not?I think so what say you? any one? any one?
Perhaps O preferreds are better than Syria preferreds or Syria CD's ? May Be better than Iran investments in nuclear power plants too? However Cuban tobacco may be o.k. now? north Korean soups are not a good investment either? I also would avoid India bikini shops another bad investment/
If you feel you can time the market then that is great. I recently bought O, because it is down over 20% from its recent high. OK now its down another $2 since then. Now paying 5.4%. This high dividend limits its downside potential. It is a company that raises its payout EVERY year, in good times and bad. If it sinks to 35, the dividend would be 6%. WOW who wouldn't want that. However my strategy is income, not capital gains, so I plan to hold. If you are a short termer, then who knows. I might add some more if it goes any lower.
Some of the REITs are fairly safe, but rising interest rates are going to hurt all REITs and I believe there is significant downside potential here.
You may want to consider some preferreds that are trading at a discount to their par value. Some of them are really on sale now.
While that may happen, some REITS will get hurt due to their portfolio makeup, some will get hurt (depressed price) temporarily from the "halo effect" and some will be neutral or will actually benefit from rising rates due to the makeup of their portfolios. From what I have researched, I believe O falls into this category. It will take a hit, as the entire REIT class will initially, because lots of people out ther cannot distinguish between mortgage REITS and property REITS, but it will rebound at some point and keep paying the dividend. Monthly.
I also own some REM as well. Now REM IS a risky play compared to O. But, even with the drop in price it's already endured, it still is within spitting distance of my original cost, and even if the dividends were to drop by 70% it still will be yielding much more than most stocks ever will, so I am just sitting on it for the income and will ride out the coming cycle and collect more dividends.
Sentiment: Strong Buy
I want you to do yourself a favor and check out different hypothetical or REAL SITUATIONS AS THEY ARE and tell me how much money your O-F has appreciated over the last 5 years compared to the common and then add the dividends in for both ( predicated on a 10, 000 shares purchase of both )and then tell me which one is on top . Please tell us.....WE ARE WAITING PATIENTLY ! ! !