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Old Republic International Corporation Message Board

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  • xds58 xds58 Jul 30, 2012 4:40 PM Flag

    Reason to buy

    fair enough, but even on that basis with $3.8 billion equity against $12.4 bil in liab and $16 bil assets (as of Q1, think ratios improved somewhat in Q2), not especially leveraged relative to other financials. If you can fine a REIT or MLP paying 9% with similar metrics would be interested. The Mortgage REITs are more leveraged (9x asset to equity avg for agency MREIT).

    I do follow one REIT, CWH, which yields more than 10% here with less leverage, but I think the dividend is less sustainable than at ORI. ORI only pays out about 70% - 80% on average of income dividended up to parent -- REIT coverage tends to be much thinner, with 90% of taxable income payable as dividends by law - MLP coverage also tends to be thin.

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