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Strategies & Market Trends : Dividend investing for retirement

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To: E_K_S who wrote (8657)6/17/2011 2:22:34 PM
From: E_K_S  Read Replies (1) of 34328
 
Re: Investors Real Estate Trust (NasdaqGS: IRET )

Stock selling off today. Perhaps based on this rumor.

June 15, 2011 08:26 EDT - IRET
theflyonthewall.com: Investors Real Estate could cut dividend at end of month, says Janney Capital. Janney Capital believes Investors Real Estate's dividend payout level is substantially above the company's quarterly recurring net cash flow. The firm believes a dividend cut could come at month end and reiterates a Sell rating on shares.

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The rental market in the areas they serve remains strong. I will step up and add shares to my position at $8.62/share. That brings my effective yield to 8% and I also receive a 5% discount on all dividends reinvested.

This Seeking Alpha article claims IRET is on of the top 10 Dividend Champions With Significant Free Cash Flow

seekingalpha.com

4. Investors Real Estate Trust (IRET): REIT. Market cap of $758.17M. Dividend yield at 7.24%. TTM levered free cash flow at $87.65M, which is 11.56% of market cap. The stock has gained 14.1% over the last year.

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Note: Price to Free Cash Flow (TTM) - Definition

IRET Price/FCF (TTM) = 7.9

This is the current Price divided by Cash Flow Per Share for the trailing twelve months. Cash Flow is defined as Income After Taxes minus Preferred Dividends and General Partner Distributions plus Depreciation, Depletion and Amortization.

IRET's distributions include "Return of Capital" which includes some of the amounts included in Depreciation, Depletion and Amortization.

The company does utilize a lot of debt (almost $1B) which exposes the company to quite a bit of interest rate risk.

EKS
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