The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. For example, the Minto Apartment Real Estate Investment Trust (TSE:MI.UN) share price is up 37% in the last year, clearly besting the market return of around 0.9% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! We'll need to follow Minto Apartment Real Estate Investment Trust for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Minto Apartment Real Estate Investment Trust the TSR over the last year was 40%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!
A Different Perspective
Minto Apartment Real Estate Investment Trust shareholders should be happy with the total gain of 40% over the last twelve months , including dividends . A substantial portion of that gain has come in the last three months, with the stock up 16% in that time. This suggests the company is continuing to win over new investors. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Minto Apartment Real Estate Investment Trust by clicking this link.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.