REITS - Buying 1 - 2 weeks before going ex-dividend Message Board

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Strategies & Market Trends : REITS - Buying 1 - 2 weeks before going ex-dividend

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To: Jeffrey Beckman who wrote (2238)	2/1/2002 2:12:22 PM
From: Richard Barron	Read Replies (2) of 2561

Jeffrey, IMH is a mortgage REIT. Your 16% return is great. When interest rates climb, this could easily become a 20% dividend with a loss in principal. This usually happens with mortgage REITs at the end of the cycle. Any close under $7.75 is very risky. I don't invest nor have confidence in mortgage REITs long term. IMH was at 18.50 in 1997 and under 2.00 in 2000. a 30-90% correction seems to happen every 3-7 years for most mortgage REITs. I recommend buying them only when you are confident that interest rates are heading down or at least stable for 9 months. It is better to buy these when it looks like interest rates have gone up for a long time and are ready to turn down. Richard

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