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

STOCKTALK

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 : REITS - Buying 1 - 2 weeks before going ex-dividend

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Richard Barron who wrote (2275)	4/2/2002 9:26:45 AM
From: Grommit	Read Replies (1) of 2561

Observation -- Just food for thought. I own around 20+ different REITs and I plot them on a graph. I plot dividend yield vertically and payout percentage horizontally. I notice a very definite linear relationship. REITs with around 70% payout seem to cluster around 7.5% yield, 85% payout seems to yield 8.5%, 65% payout yields 6.6%. 90% payout yields 9.1%. Kind of linear. And there may be some dependency on sector or other fundamentals, but there is definitely a cluster around the regression line. Maybe some of this is self-selecting, because if I notice a REIT yielding "below" what other with similar payout's, I cut back on my ownership or switch to a REIT which is "above the line". (I am sure there are REITs "below" my line which I choose not to own, and since they do not show up on my graph, it makes my data have an more solid relationship than reality). Anyway, when I spot a REIT "above the line", I investigate and load up on it. One REIT which I noticed to be Yielding "more than it should", is HIW. It's payout ratio is around 60-65% while most REITs in that range max out at a yield 6.5% or so, HIW is yielding 8.5%. I don't see anything funny in the press releases, financials, or insider activity. Any thoughts? thanks, Grommit.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next