SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Madharry who wrote (8993)11/25/1999 12:42:00 AM
From: Q.  Read Replies (1) of 78625
 
re. REITs, it is completely untrue that "in most cases the dividends offered cannot be generated by the REITs cash flow"

re. how to pick them, if you don't know where else to start, try looking at the REITs with the biggest market caps.

To name just one, EQR is one of the very biggest. It has a dividend of $2.84, with cash flow from operations (FFO) that was $4 last year and expected to be $4.47 this year. You will note that the dividend is easily covered by the cashflow.

EQR is a good and steady performer, with a 7.6% yield, and an 9% growth rate on FFO, as estimated by Salomon Smith Barney. Adding these two numbers gives you a total expected return of >16%.

There are many other REITs you can pick that have yields and growth rates similar to those of EQR.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext