I see zebraman still the alpha male of this board. I am surpised that mid america stock is where its at I sold to early. It just never got back to the price I wanted to pay for it.
So Zebraspitter where does the smart money go now. For myself I am taking a break from stocks I still hold a few I like silver right now and that drug company adventis.
I planted 4 acres of black cherry trees this year and I might do 2 more next year I planted almost 700 trees I hope in 25 to 30 year thats at retirement age I hope there will be around 500 alive and worth about 2000 a log. log the trees and sell the property I would not even have an idea what the property will be worth in 30 years I know that I would be millionare in some parts of the county with 6 acres right now. my brother in law told me that I was nut for doing it but I look at it as asset allocation little bit here little bit there.
(By comparison, JNJ has almost upped theirs by 35% in the same 7 years, and you have nothing good to say about it! ).
And, those MAA dividends are not even beginning to keep up with inflation - as I'm sure you realize when you go buy something, like gasoline, with that same dividend.
And, for those of you who figure their current yield based on what they paid for the stock years ago, that's just an blinders-on way of looking at it. What about a return on your capital gain? -- if you plan on just letting that sit there, at the risk of going down, you don't think you should at least get a return on that money?
If the stock pays $2.35 and you could sell it for $48, and don't, well, your yield is less than 5%. You can get that just about in a 10 year government bond, a risk free investment, unlike MAA.
But, hey, I'm sure you have thought about this many times. Good luck with your strategy.
If the stock goes back to $35, you'll be better off than if you sold now? That's what you should be worried about. The CFO sold millions of dollars worth at that level a year ago. You think he doesn't know the true, instrinsic value of these shares? These bull runs have a way of overdoing it and that, IMO, has happened here. You couldn't find anyone interested in REITs 5 years ago, when the yields were double digit, and they were off chasing bubbles. Now, the same people are chasing yield. Should end when rates head up. When CDs are available at 6% you think this stock will still be priced to yield 5%?
As to JNJ, the yield is almost half of this one at these levels. Sure there is always risk in healthcare. Lots of reward, too, given the demographics. This is the bluest of the blue chips, and is very, very diversified, both products lines and geographically.
I'd point out that I had been in MAA since 98, I believe(the posts here will verifiy that, I'm among the first). The company has not raised the dividend but a penny, I believe in at least the last 5 years. JNJ, raises it about every year, since their biz grows(they don't need to basically rely on higher rents or lower costs on the same asset base). JNJ is hardly overpriced at about 16x forward earnings. It should sell at 20+ p/e and it will at some future date. The yield will surpass this one within 5 years, I'd bet, and the capital gain potential and downside risk profile in JNJ is a lot better, IMHO.
If you could have sold MAA at $50 and didn't, for reasons you discussed, than you lost money, whether you want to think about it or not. That $50 could be working harder for you than the current $47 can, or the $35 will.
I just noticed MAA was down over 3% today...like I predicted in my previous post(before I had noticed the drop), you can lose everything in a day or less that you make in annual dividends. They call this 'reaching for yield'.