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

To: JimisJim who wrote (24779)	6/4/2016 6:12:08 AM
From: Hoatzin	Read Replies (1) \| Respond to of 34328

I recall posting this: Message 30105747 almost a year ago. Glad my post did not mark the bottom, although it is higher now than then. I still include this name in the 90% of the universe of tickers I am happy to ignore.

To: JimisJim who wrote (24779)	6/4/2016 10:52:31 AM
From: Paul Senior	Read Replies (2) \| Respond to of 34328

GOV. I own it and have posted on it. Pro: primarily leases to government agencies. Ergo have to assume renter defaults would be negligible. Pro: high yield. If leases could be maintained or are long-term enough, seems like it should be a simple enough business to understand/manage with sustainable dividends to stockholders. Con: Portnoy-controlling family apparently not aligned with small stockholders. Con: Portnoy "adventures" could destroy GOV's positives -- maybe are again/still doing so. With stock low enough and dividend maintained, reward possibility imo outweighs the risks of Portnoy's. After all, they are stockholders too. (I assume they wouldn't drive the stock totally into the ground.) Question then becomes, is stock low enough now? My guess...that time was months ago (I added), maybe not low enough now. I don't see any adverse news coming to drop the stock. (Otoh, I don't see that well -g-.) Stock at $20; I'll guess it will continue to move up to $21-22 level, and good dividend yield maintained. I'll continue to hold.

To: JimisJim who wrote (24779)	6/4/2016 12:03:51 PM
From: geoffrey Wren	2 Recommendations Recommended By E_K_S Hoatzin Read Replies (2) \| Respond to of 34328

GOV has outside manager of RMR, which is well-known for managing its REITs in self-serving ways, such as increasing RMR's Assets under management when the expansion of assets does not benefit existing shareholders of the REIT. All REITs operated by RMR have an "RMR discount" in their price, which is to say they trade at lower metrics than other REITs. The discount is around 20-25%. At its current price GOV is probably fairly valued, all things considered. I do not buy into the government buildings idea that much. Sure there is less risk of default in lease payment, but as to lease renewal (which is the much bigger matter), I do not know. Also, if these are uniquely government buildings, leasing out to new tenants would be more difficult. If they are not uniquely government buildings, then over time the REIT will have a decreased level of government tenants, so the premise of concentrating in government tenants will fade. It is a nice dividend yield. That is what lures one into owning GOV or the other REITs managed by RMR (SIR, SNH, HPT). Of all these I would rate them in order of preference: SIR, SNH, GOV, HPT.