hi,the reits are an interesting example and have and do pay well. however,have you ever read a propectus of an reit or bond indenture in your due dillegance.? the public has lost about 6 trillion dollars of net worth,plus or minus a few billion here and there,with more coming,unless you believe this is the exact bottom. with the consumers only supporting asset being real estate, and they have been borrowing very heavily against it for some time now, with second mortages and loans of all kinds.the stock market is down further than any one thought ,so why should we think real estate in immune. perhaps because taxes on it keep going up. remember the higher the taxes the less the value,eventually.you get more what you subsidize and less of what you tax someone once said. real estate value went down in 29 and pulled the banks with them. today the banks are held up by the fed but their quality of real estate loans may be going down and the commercial real estate market is over built. so where does all this chatter leave us. you tell me..
It pays a dividend but, not a spectacular dividend. If peopole are searching for dividends they could buy REITs (NLY at 15%)over the last two years with far greater returns. IMO people bought this stock because they were waiting for the recovery & in the meantime they were earning a decent dividend. I think we're talking about the same thing.
While the dividend is certainly nice to have, I view this stock as a cyclic type which will benfit in a growing economy. Therefore even if interest rates rise, as long as the econ. is growing, the stock should rise. EPS still drives stock prices, IMHO.
thanks,i use caps cause vision is quite poor,but wii use lower case if necessary. buy on rumor sell on the news appears to be going on today. let the trader out but where will they go? their intwerest in income may drive them to ek for a year worth of 5% dividends but then what?
what does eom mean. my problem today is what we do at $20.00 if there are few sellers and constant small investors and just a few shares out there and market remains sloppy,getting out at any point maybe risky.who will let us back in.and our yield will be gone.