I will not sell XYZ as my yield on cost is now 8% I’m sure you have heard (or even said) this line a few times, haven’t you? Funny enough, I’ve also used this line to justify some of my holdings. For example, I’ve considered the yield on cost for my low dividend paying stocks. The idea is to show how a 1-2% dividend yield stocks could become a 3%+ yielder in a few years. Examples of companies like Disney (DIS) which pay around 1%-1.5% yield, but provide shareholders with a strong pay raise each …
Quick REITs Analysis Guidelines
For this final part, I wanted to give you a methodology to quickly analyse REITs. If you have missed the rest of this series, you can read more about REITs investing here: REITs Guide Part I REITs Guide Part II REITs Guide Part III I know that you don’t have all the time in the world and that one of the reasons you purchased this book was to save time. After reading the past few articles on REITs, you may be ready to drop this option and concentrate on dividend stock picking. REITs …
Be Careful, There Are No Free Lunches With REITs Either…
In the first part of this series, I’ve painted a pretty nice picture of REITs, don’t you think? But there is nothing perfect in this world and REITs are not even close to perfection. There are several things you must look out for before considering investing in any REITs: Be Careful – the Tax guy has an eye on you! As opposed to dividend stocks, distributions from REITs are mostly considered as income with a portion of return of capital (ROC). Remember that income from REITs is fully taxable …
Continue Reading about Be Careful, There Are No Free Lunches With REITs Either…
REITs Investing Guide
I’m receiving a lot of questions about REITs lately. On one side, interest rates are low and investors are concerned about what will happen to the loan structure once the rates go up. On the other, with such low interest rate environment, many REITs look very appealing with their high yield. I’m also a bit concerned about the future of brick & mortar stores. Many of them are closing as they can’t keep up with online stores. It’s not like a new chain will occupy those empty spaces…. Most …
Can Dividend Stocks Crash?
Are Dividend Stocks too good to be true? I’m a fierce defender of dividend growth investing. For the record, my portfolio is 100% invested in dividend paying stocks. Still, I think it’s time to wonder if a dividend bubble is about to bust… Dividend Growers to the top The popularity of dividend stocks has grown significantly over the past decade and there are several reasons for it. One of them is a magic word among investors; performance. Since the 2008 meltdown, dividend growers …
Best 2017 Dividend Stocks Review
After a little bit more than 3 months on the stock market in 2017, we have already experienced our fair share of emotions. While the U.S. market peaked at +7.02% on March 1st, investors’ enthusiasm is fading away as the market is now up only +4.03% as at April 16th (yes, I’m writing this on Easter, a man has to work sometimes!). We are seeing a similar phenomenon on the Canadian market as it peaked at +4.15% on February 21st to drop to just +1.62% at the moment of writing this article. We …
