Shares & Derivatives
Cory Diary : Dividend Play and Timing
By CoryLogics  •  April 11, 2017
Let's take a REIT Stock which gives 7% dividends annually at current $1 tag. Assuming there is no major "calamity", that's 7 cents annually. Interests up few points during the year, how much is REIT impacted ?1. Borrowing are secured across few years to decade contract. Some on annual basis. Some on fixed rate. Some Reits hedge their borrowing too. 2. Increase in borrowing cost can be passed down to tenants. In Retail is about 3 years contract. And typically contract renewal are staggers across the periods. 3. Some Reits have internal mechanism where rent escalation is tag to inflation and revenue 4. Rising rates mean the Market is able to absorb the increase to prevent bubble. Is not to kill the goose but to ensure longer road of growths. Based on above, any dip in well managed Reits, are good entry points. Stock price fluctuation will be mitigated by ...
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By CoryLogics
I am not an investment adviser. Nothing herein my blog constitutes investment advice. Is my personal believes that not everyone has to go through the hard way. This blog also serve a purpose to help me record my understanding and personal learning growth. I sincerely welcome all comments.
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