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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: JSLyons who wrote (17253)	11/8/2001 11:34:02 AM
From: Bernie Goldberg	Respond to of 18928

Hi Jonathan, There are lots of different kinds of REITs. Healthcare, Retail, Office etc. They basically own Real Estate which they rent out predominantly in the field in which they specialize. They get special tax breaks from Uncle Sam. In order to qualify for those tax breaks they are required to return 85% of everything they make to the shareholders. They do this in the form of dividends. They are not as volatile as tech stocks, but have been satisfactory to me as AIMers. I update monthly using limit orders for sales. With the Feds reducing rates it is nice to be able to comfortably get Yields between 7 and 10%. There is a thread here on SI that covers REITS. I look for steady to rising dividends and increasing FFO(Funds From Operations). EPS is not generally considered a major indicator with REITs. Bernie