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Time To Take A Break From Eaton [View article]
Time To Take A Break From Eaton [View article]
I agree with you about Eaton's fast price appreciation in 2013, and Rdunn's comparison with EMR may indicate how undervalued ETN was prior to 2013. It may still be "catching up." Its highest trailing PE ratio during the past five years was 19, and it has moved beyond that now to 20.
ETN is now 2.8% of my portfolio, and if it continues to move higher, I may trim it to 2.5%, which I would view as my minimum holding for this great company. I'm long Genuine Parts (GPC) and Johnson & Johnson (JNJ) and I've trimmed them in like fashion. I consider them core holdings and plan to hold what I have left. ETN is almost in the "don't sell any more shares" category for me.
All the best!
Realty Income Is Simply A Great REIT And Nowhere Close To A Bubble [View article]
Realty Income Is Simply A Great REIT And Nowhere Close To A Bubble [View article]
BTW, I enjoy your website. Your email outlining your upcoming newsletter arrived this morning. The table of contents is indeed "robust." Thanks for all you're doing! Long NNN, O, WPC.
Follow The 'Smart Money' And Buy Johnson & Johnson In The Next Pullback [View article]
Are We In A REIT Bubble? [View article]
On April 8, in "Time to Build a Shopping List," I suggested a target yield of 5% for NNN, O, and WPC, which would be: $31.60 for NNN, $43.40 for O, and $65.60 for WPC. We're still well above those levels.
Now I'm asking myself if I would "nibble" if the yield on any of these three reached 4.8%, which would be $32.92 for NNN, $45.21 for O, and $68.33 for WPC.
These three triple-nets are solidly in the "hold" range, but the mREITs in my universe have dipped into my "buy" range.
The article set a 7% yield target for STWD, which has raised its dividend since the article to $1.84 annually. Thus I raised the target price for STWD to $26.29. On this morning's selloff, STWD dropped to $25.52, for a 7.2% yield. I haven't bought any more STWD today, but I'm watching it.
I'm also watching NLY. I like the triple-nets best and I like STWD's business model better than NLY's. The article set a 12.5% yield target for NLY, or $14.40. On this morning's selloff, NLY dropped to $14.05, for a 12.8% yield.
Was this morning's swoon a bump in the road or is this the first wave of renewed volatility?
I'm long NNN, O, WPC, STWD, and NLY. This week I initiated a position in Chambers Street Properties (CSG).
Retail REITs Look Awfully Sweet [View article]
Retail REITs Look Awfully Sweet [View article]
Optimizing Triple Net Lease REIT Investment: Time To Sell Realty Income [View article]
Through the years I've bought it during downdrafts and sold it when it seems overheated. In June 2012, I completely sold my position. I decided it was a mistake to completely eliminate the position because it is a great company and their merger with American Realty Capital changed the landscape. In February 2013, I found a new entry point at $44.40. Now I view O as a core holding, and I've set some "minimum" and "maximum" parameters based on yield--generally keeping it between 3% and 4% of the portfolio. It has appreciated 20.4% since that February purchase (at the current $53.47), so I have trimmed it a bit.
My February 22, 2013 blog describes the process (http://bit.ly/15Jqcok):
"I sold it in June, 2012 when it reached $37.80. The yield at that time was 4.6%, but by comparison the yield of National Retail Properties (NNN) was 5.9% and I thought O was a little ahead of itself. ...
"Last fall, Realty Income announced a merger with American Realty Capital Trust, Inc. As a result of the merger, in January, 2013, Realty Income announced a 19.2% increase in its monthly dividend, from $.15175 to $.1809167. This raised the annual dividend from $1.821 per share to $2.171. It also brought Realty Income's dividend yield back into the 5% range. As of February 21, NNN's yield was 4.7% and O's yield was 4.9%."
Long O and NNN.
Use Linn Energy To Build Income Now [View article]
Even Though Ben Graham Would Not Buy This REIT Today, I Would [View article]
Waiting Patiently For A Blue Chip REIT Pullback [View article]
Opportunity Costs For Dividend Investors [View article]
This was well said. The limitation of "black and white" rules was illustrated in the 1984 Ghostbusters movie:
Dana Barrett (Sigourney Weaver) is possessed by the paranormal Zuul, who tries to seduce Dr. Peter Venkman (Bill Murray). Venkman says "I make it a rule never to get involved with possessed people." After she lays a passionate kiss on him he says, "Actually, it's more of a guideline than a rule."
How Star Trek Shaped My Retirement Perspective [View article]
What Is Mr. Market's Mood Today? [View article]