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  • The REIT Dividend Delusion [View article]
    Jack, don't think we re looking at revisiting the 70s anytime soon, so the extreme examples are necessarily helpful. Will prices go down to reflect rising rates? Yes. Will prices go up as rates fall? Yes. 30-40 years would be a double massive super cycle.
    Mar 16, 2015. 11:55 PM | Likes Like |Link to Comment
  • The REIT Dividend Delusion [View article]
    All platforms should accommodate it, many just use different forms to enter the ticker. For example, one of the platforms I trade on is Schwab, and they list their preferreds like O+F for the Realty Income Fs. Hope this helps.
    Mar 16, 2015. 11:52 PM | Likes Like |Link to Comment
  • The REIT Dividend Delusion [View article]
    As I stated:
    With that said, let's revisit one of the common themes of REIT investors - I want the dividend, I am not in this for capital appreciation. If the price goes down, I will simply buy more and collect more income. The math holds for both the common and the preferred. If preferred prices go down, you can buy more and increase your income.

    If you are a total return investor and count on both capital appreciation and income, this trade might not work for you. At current values in the equity markets, you might not be a huge buyer of REITs anyway.

    Guess the editors read the article. Sorry you didn't find it helpful.
    Mar 16, 2015. 11:47 PM | Likes Like |Link to Comment
  • The REIT Dividend Delusion [View article]
    Great insight and resource for all of us, thanks!!
    Mar 16, 2015. 11:44 PM | Likes Like |Link to Comment
  • The REIT Dividend Delusion [View article]
    Spyre, I just wrote about rates and REITs, maybe it will help, maybe not - but it cant hurt. IYR and VNQ are two REIT ETFs, but global REIT etfs are hard to find. I have been looking at Gazit as a global REIT play, Westfield out of Australia (careful of their unit structure though) and I am looking forward to NorthStar's pending European spin.
    Mar 16, 2015. 11:43 PM | Likes Like |Link to Comment
  • The REIT Dividend Delusion [View article]
    Absolutely correct, and you are right, that should be stated in articles about REITs such as this one. Distributions will either be all ordinary income (no QDI) or a combination of return of capital and ordinary income. Great advice, I will incorporate it going forward.
    Mar 16, 2015. 11:35 PM | Likes Like |Link to Comment
  • The REIT Dividend Delusion [View article]
    Amen! love quantum (linked to it at the end of the article) and firmly believe that you should understand the risks before you take the risks. Ultimately, you will be the one that reaps the rewards or bears the losses. Great points!!!
    Mar 16, 2015. 11:33 PM | Likes Like |Link to Comment
  • The REIT Dividend Delusion [View article]
    Rich, always on point. The point of this article was to surface the idea that there are options available to investors and, depending on your investment style, you might want to consider alternatives or a blend.
    Mar 16, 2015. 11:29 PM | 2 Likes Like |Link to Comment
  • The REIT Dividend Delusion [View article]
    Great point. Depending on the size position you are building (or own), entry/exit could be difficult.
    Mar 16, 2015. 11:26 PM | 2 Likes Like |Link to Comment
  • The REIT Dividend Delusion [View article]
    Out of my mind is a pretty broad statement. Some might argue either way. As far as the OPrF is concerned, you have a yield to call of 3.50% and when you think about rates in two years and where O might be able to fund in the preferred market, the "callability" of the preferred is reduced.
    Mar 16, 2015. 10:00 AM | 3 Likes Like |Link to Comment
  • Are Junk Bonds Peaking? [View instapost]
    Back to the days of Chuck Prince's Citi - “As long as the music is playing, you've got to get up and dance,” And we all know how that worked out.
    Mar 15, 2015. 04:47 PM | Likes Like |Link to Comment
  • REITs And Rising Rates - My Perspective [View article]
    Speculators don't sell high, smart investors do. There is a difference. Allocating capital efficiently is what investors do. That said, check back soon, I an writing an article with the dividend collector in mind. thanks for reading and commenting.
    Mar 15, 2015. 11:50 AM | 4 Likes Like |Link to Comment
  • REITs And Rising Rates - My Perspective [View article]
    As REITs are interest sensitive, you are right - data driven trade bots will affect them. "beating on REIT prices like rented mules". I have to tell you, I absolutely believe that investors have the best sense of humor - perhaps because we have to.
    Mar 15, 2015. 11:45 AM | 1 Like Like |Link to Comment
  • REITs And Rising Rates - My Perspective [View article]
    Doug, absolutely agree. Historical responses and impacts are out the window when the market is not in the hands of its own forces. Inflation can't be counted on to help drive value and the curve shouldn't react by a shift across maturities. I think the one thing we can count on is volatility, which could create opportunities. I am also looking overseas and watching the development of REITS in places like India. Thanks for reading and adding great commentary
    Mar 15, 2015. 11:42 AM | 2 Likes Like |Link to Comment
  • Worried About Rising Rates? Here Are Some Alternatives [View article]
    Absolutely agree with the parking your money in the floaters, given their short duration. I also get your point regarding looking at the lower minimum coupon, but continue to choose the higher because I also think 3% LIBOR is forever away. Thanks for the thoughts and bringing up a very valid viewpoint.
    Mar 9, 2015. 09:56 PM | Likes Like |Link to Comment
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