I know it only 1% of assets but I am confused
about the status of the behavioral care facilities. The
quarteryy list 2 facilities with 294 units. It also shows 0
revenues0n pg 9 and 0 investments on page 13.
understand the status of these 2 facilities. Anyone know
what it is? Lou
I'm curious about a couple of points. I bought
this stock with the idea of reinvesting 100% of the
dividends over a period of 4 plus years.
In my mind's
eye, the lower the stock price, the better my
reinvestment results. If the div. is reliable, a lower sh.
price is to my advantage. Are many people posting to
this board of like mind, or are you buying for a few
days only to sell after ex-div?
I've found is that there are many who buy this kind of
stock on margin. They expect to make quick bucks on it,
and sell ASAP.
I've looked at buying before
ex-div and selling right after. To me, it's an
unreasonable risk. I'm holding long. Either way I pay
I'm not criticizing other's tactics. I would
appreciate it if anyone took the time to enlighten
You lose money buying a stock just before it goes
ex-dividend and then selling right after. The stock drops
exactly the amount of the dividend (hence the term
ex-dividend in the tables on that day) and in addition, you
pay taxes on the dividend (unless you are in an IRA).
Its better to buy the stock ex-dividend (you get more
shares). Market timing is an exercise in futility unless
you have a working crystal ball. Buying REITs on
margin entails considerable interest expense that eats
up the dividend. Capital gains in REITs are usually
modest. If margin or leverage doubles the bang of your
buck, it also doubles the potential loss. While HCN is
the riskiest of the 4 quality healthcare REITs, its
dividend and residual value give it a reasonable
risk-reward ratio IMO. HCP is the safest of the 4, hence its
price is highest and dividend % lowest. But an HCP 10%
return is not to be sneezed at year in and year out.
mresseguie << In my mind's eye, the lower
the stock price,the better my reinvestment
results>> I agree, but often a drop in price may indicate
someone thinks there is something fundalmentally wrong
with the company. He/she may be right or wrong but it
is a warning.