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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Bocor who wrote (9984)	9/9/2011 11:48:05 AM
From: geoffrey Wren	Read Replies (2) \| Respond to of 34328

I think investors often pay too much premium for apparent safety. Nothing is really safe. It may appear safe. 10 year bonds at 2% is one example. 10 year bonds can suffer from inflation. Unless there is deflation you are locking in at best preservation of capital. Mortgage backed securities with AAA ratings in 2005 is another example. And REITs that have not cut their dividends may be another. Some REIT's are less subject to financing risk than others, but they are all subject to lessee demand. For instance, NNN had 5 Borders stores, now out of business. The REITS that were less leveraged suffered the same sort of lease problems etc. as other REITs in the last few years, but it was less apparent (meaning no dividend cuts) because they were less leveraged. I think there is less margin of safety in NNN and O than there used to be. I own NNN but am considering selling it. As to O, I have read apparently valid observations that they have stretched themselves to keep up their string of increased dividends. These are good stocks to put in an account for the baby grandkid to buy and forget. But for someone watching their accounts in real time, there are better REIT buys out there.