Dividends disappearing so fast my head is spinning!

[mathjak107]

easy answere, which ever gives you the higher return.....

i use both and some years my index funds do better some years my active.... its the kind of thing that you dont know which is better until after it happens....overall though over the last 20 years i went back as far as i could and my managed did outperform ... i follow fidelity insight newsletter for my active

 

[MichaelB]

I believe this sums up this thread at this point:

Got that right.

mathjak, it's clear we are talking different things, so I'm gonna leave this thread, 'cause the only thing that's gonna change is that horse is gonna get tired of ziggy hittin 'it in the - well, you get the picture.

ziggy - how'd you do that?

 

[Brat]

Does anyone have an opionion about O & STON?

 

[CCdaCE]

Does anyone have an opionion about O & STON?

Unbelievable yields. Can it last?

[O] Realty Income Corp link

[STON] StoneMor Partners link

It's weird how STON's P/E ratio is 88 or something. Do they distrib. 99% of their earnings as dividends? I like the monthly payout on O.

-CC

 

[CyclingInvestor]

Does anyone have an opionion about O & STON?

O is a well-run, conservative REIT. They are less vulnerable than most retail REITs to recessions because of their triple-net structure. I do not invest in O because of their slow long term growth prospects - 4-5% over the years, IIRC.

 

[Running_Man]

Does anyone have an opionion about O & STON?

STON is a dying business. Other than that I know little.

O has been hurt with the rest of REIT's by the concern of decline in property values and dropping rents on expirings rents leading to cuts in dividend. Historically has been well run but from what I have seen there will be plenty of cuts in the REITS, I'm going to wait a year or two myself to see who the smart REITS are after the fact and forgo capital gains here for certainty of dividend return.

 

[Brat]

I am less interested in capital gains than I am in dividend return.

 

[clifp]

I own O and I agree with Running Man, a terrifically run company but. A fall in commercial real estate values seems likely and O will be hurt. They well maybe forced to cut their dividend although the M* Dividend guy thinks it is unlikely. But IMO it far from certain they can continue their history of increasing the dividend.

The CEO sounds optimistic, but than so was Immelt.

Commenting on Realty Income’s financial results and real estate operations, Chief Executive Officer, Tom A. Lewis said, “We are pleased with our results given the current environment in the credit markets and overall economy. We are fortunate to be in a very liquid position with over $30 million in cash on hand today and no balance on our $355 million credit facility. The Company also has no mortgages on any of its 2,348 properties and no debt maturities for four years, or until 2013. Additionally, we have no properties under development, no joint ventures and no off balance sheet assets or liabilities of any kind. As such, we believe we are well positioned to manage the Company during these difficult times.”
“Our focus during the fourth quarter continued to be on strengthening our balance sheet, maintaining substantial liquidity and managing our portfolio to maximize current occupancy and ongoing cash flow. During the quarter, we retired the outstanding $100 million in 8.25% Senior Notes, NYSE ticker symbol OUI, that were due in November 2008. During the first quarter of 2009, we also repaid the $20 million in 8% Senior Notes that were due in January 2009. All of these notes were retired with cash on hand.”

Regarding STON, I am pissed that Running Man stole my pun. (The company is in the graveyard,funeral home business). I spent roughly 3 hours, at least two years ago looking at the business, I chose not to invest cause I didn't like the business model, but don't remember any other details.

 

[al_bundy]

whatever happened to SCI? i remember back before the internet i found them and read the annuall report. before the big growth spurt and all the media problems

 

[Running_Man]

I am less interested in capital gains than I am in dividend return.

I have been fortunate in that I have been looking for a REIT to meet my criterea to buy for over a year and have not yet invested in any. The best REIT at this point in my opinion is FRT. The dividend is very important to them as a means of measuring stock success. I thought their president was very straghtforward and understandable on his earnings call. If you'd like to get a general idea of what is happening to the REIT area and why it is so unsure listen to this: You would need to click on Web broadcast.

It will be available for about 2 more weeks, it is about an hour long, I thought the whole call was very interesting, but I am an accountant!

Event Details

 

[Brat]

Running_Man, that was in interesting discussion. Forbes just published it's review of REITs, link: http://www.forbes.com/2009/02/25/reit-performance-grades-business_reits-list.html?partner=investing_newsletter

I am not a fan of getting dividends in shares and do think that leverage is a factor to consider.

 

[Ed_The_Gypsy]

My Vanguard REIT index fund has fallen so far, I am just going to keep it and watch what happens. They yield is interesting, but they are probably giving me back my own money.

 

[mathjak107]

i use ICF

 

[Dawg52]

STON is a dying business. Other than that I know little.

One thing for sure, none of us will get out of this world alive. And with the stock market crumbling, it may be sooner than later. STON may be the only company to benefit from the current economic situation.

 

[Running_Man]

Running_Man, that was in interesting discussion. Forbes just published it's review of REITs, link: http://www.forbes.com/2009/02/25/reit-performance-grades-business_reits-list.html?partner=investing_newsletter

I am not a fan of getting dividends in shares and do think that leverage is a factor to consider.

I surely agree that the lower the leverage the better the REIT and stock in lieu of dividend is useless. Only value is to allow to sell partial of company and keep round number of shares, which is just a number.

It was interesting to look at how the leverage had changed for companies from 2008 to 2009