>>>The sector is objectively cheap. There is asset value to back that statement up and to cushion downside in a bear market.
Jim and Paul,
I've been lurking here for a while, since I'm anxiously looking for some value plays. I've put some of your REIT recommendations on my watch list. But I have a couple of questions:
1. When the bubble breaks, are these REIT's going to hold up much better in terms of asset value and payout? I notice CLP, CCG, and PSA all dropped considerably during the July-October period when we were starting to feel like a bear market. Asset-backing in the REITs can still depreciate in value, which would happen if this 94 month economic expansion falters. If this happens, do these particular companies have a history of paying dividends thru the down cycle?
(If there is a site which provides a history of the payouts going WAY back since the last downturn, would like to know --otherwise, a trip to the library to check out Value-Line or Moody's?)
2. What am I missing here: when I look at these stocks on Yahoo, I see most with earnings/share MUCH less than dividend/share. How is this sustained over time?
I'll tell you, if I could get something close to a guaranteed 8-9% going forward for the next 12-18 months, I'd take it right now!! So I'm interested in hearing your reply.
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