Why do people tend to compare FD rate with REIT's yield?
What about ASW / ASM dividend yield? Aren't those a better comparison with REIT dividend yield?
REIT V2, Real Estate Investment Trust
REIT V2, Real Estate Investment Trust
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Mar 15 2011, 08:39 AM
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#1
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Why do people tend to compare FD rate with REIT's yield?
What about ASW / ASM dividend yield? Aren't those a better comparison with REIT dividend yield? |
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Mar 15 2011, 01:43 PM
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#2
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Mar 16 2011, 12:01 PM
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QUOTE(smartly @ Mar 15 2011, 04:01 PM) given choice, i would prefer to park $$ at ASW/ASM but the question is how many can access to this two funds in respect of the low quota and age restriction. ?? it left no choice to choose REITs as an alternative. QUOTE(2010May @ Mar 15 2011, 09:13 PM) REIT dividend is something like fixed income (it is mainly depends on rent except BSDREIT) as compared with ASW / ASM. REIT / FD / Bond are almost like fixed income (although REIT / FD / Bond are different). ASW / ASM provide dividend which was quite constant but it still depends much on the investment profit that year. So people usually compare REIT with FD. QUOTE(ripalo @ Mar 15 2011, 09:42 PM) ya, the quota thing is the limitation. Still, ASM & ASW offer zero risk (almost), which is why i post the question. With REIT, as long as you have bullets to shoot, it's fire all the way til you run out of ammos |
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Mar 17 2011, 02:15 PM
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QUOTE(2010May @ Mar 16 2011, 08:14 PM) Impossible almost zero risk for ASM & ASW. I know that they constantly pay good dividend but they are still investing in stocks market. I thought the government guaranteed the unit to stay at RM1.00. Meaning that either you buy or sell, it is always RM1.00 per unit. Which is the reason i'm saying it is almost free of risk. Dividend yield is another story. It could be high or low depending on the market. But as far as i know, highest yield that i have received is 8% while lowest is still a respectable 6.6%.We can only say that ASM & ASW have skillful trader / portfolio manager. |
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May 15 2011, 08:27 PM
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#5
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May 16 2011, 10:27 AM
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#6
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QUOTE(omgimnoob @ May 15 2011, 08:41 PM) Ooo...ok, ok.If the price really shoots up, we spread negative rumors about those 3 pulak... see if the price will come down or not for us to collect QUOTE(cwhong @ May 15 2011, 11:11 PM) same case.regret that i didn't fire my bullets when they're cheap during the 2008 crisis. back then, the yield was around the early teens. now, the price is not of my liking already still waiting for another crisis to hit reit |
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May 16 2011, 05:24 PM
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#7
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QUOTE(jtleon @ May 16 2011, 12:07 PM) Just curious...Why do you want to buy into a reit that offers a yield of 2.9%? I think the yield haven't deduct the 10% witholding tax somemore...am i correct? FD offers 3% with much less risk... You have any insider info that i don't have? Come on, do share |
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May 16 2011, 11:26 PM
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QUOTE(cherroy @ May 16 2011, 05:35 PM) cherroy, do you have the formula to calculate net yield?How to minus the witholding tax from the yield%? QUOTE(omgimnoob @ May 16 2011, 10:54 PM) If earlier didnt join in the boat, wait for another one...Keep your precious cash to join a new boat. 5 to 6% is yet to consider high return. Aim for 7 to 8% annually and diversify to different industries REITs. 5-6% really doesn't attract my attention Huat together!!! I'm looking for 12-13%. So, at the moment, i store my ammo in ASW arsenal. Waiting for the right moment to declare war Here's to our huat & fatt together! |
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May 17 2011, 12:49 AM
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#9
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QUOTE(wongmunkeong @ May 16 2011, 11:42 PM) Even when i bought at end 2008 and early 2009, my net DY% never hit 12%pa to 13%pa leh. TOTAL returns got lar - inclusive of capital gains, but pure net DY%, elek Not pure net DY%pa...Perhaps another round of WORSE crisis, then can hit lor If i'm not mistaken, it's just the normal yield for Axis or is it Atrium during the crisis hitting 12-13%. So, say, i bought Axis/Atrium at 13% yield, how do i minus the 10% witholding tax? After the 10%, i don't think i'll get 12-13%, maybe around 10-11%... Crisis, crisis where art thou? zam zam ala kazam... show me the money tomorow |
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May 17 2011, 09:47 AM
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QUOTE(bullchips @ May 17 2011, 12:51 AM) Looking for 12-13% ? Where were you when Atrium was below RM0.65 early 2009 ? I bought at RM0.625/0.63 giving current yield of about 13.8%. Like what Buffett said, i thumb-sucking that time lo But would you dare to buy then ? None of my friends dared to touch the stock market at that time. The prevailing mood at that time was that the sky is falling down & the KLCI would drop to zero ?! The thing about trading/investing is to be practical and able to anticipate well in advance possible catalyst scenarios & have the courage to act accordingly. Otherwise, success would just remain an elusive daydream. If you can find any counters yielding a consistant divvy of 12-13% now, I am sure the whole of Lowyat.net ppl would like to know. Me included 12-13% yield is very attractive that time. But i'm still new to reit, do not intend to accumulate before i study it first. Study punya study, still don't quite get it, so never get the chance to add into my portfolio Now, lagi no chance. Waiting for another crisis to show its ugly face 12-13% now? In this bullish market environment ka? Wah, i also want to know myself le |
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May 17 2011, 09:53 PM
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I am very surprised to see some senior member actually don't know that we live our own life, and not other people's life. We live on our own expectation & not others'. One man's meat is another man's poison. One Junior Member's wish is another Senior Member's nightmare!
If we want to lose our job, it's our business & our life! If we want 30% yield, it's our expectation. So? What were they thinking?! They think they're so senior that they are highly respected & work for Welfare Department. There's a need to become busy-body & take care of every citizens' welfare. LOL! Self-employed welfare department senior member also afraid of losing job |
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May 18 2011, 08:26 PM
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QUOTE(wongmunkeong @ May 17 2011, 07:11 AM) Heheh - my apologies HJebat. I track my investments in "net profit/loss" form, thus i disregard the gross DY%, not in my pocket = waffor, gimme false hope only that stats wong, how do you calculate your "net profit/loss"?& why do you put up that...that, apa nama that " " thing har? QUOTE(Currylaksa @ May 17 2011, 09:39 AM) To get that kind of yields, you need to invest near to historical low. For some of those REITs, it's when they first dropped post-IPO... now lambat liao QUOTE(cherroy @ May 17 2011, 01:48 PM) If you able find a 12-13% yield in current bullish market, then better be careful. Guys, that's why sometimes i bang my head on the keyboard; because i let that extraordinary moment to slip off It could be too good to be true... Market is somehow got its own efficient, they don't wait for you to buy 12-13% yield good investment. If you were me, how are you going to react? You know that early teens yield are a rare occasion for reit & that opportunity wouldn't wait for you. But on the other hand, you have no prior knowledge about reit. So, do you give it a pass while you equip yourself with enough info? Or just grab that opportunity while it's still available? |
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May 18 2011, 10:21 PM
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QUOTE(cherroy @ May 18 2011, 09:12 PM) My advice is always the same. Ooo...so my thumb-sucking activity is correct, eh? Don't know/understand, do not invest. How do you ensure the reit won't go burst during bad time or when the yield is teen number time? You/we don't know. There were well known reit in overseas went burst during the global crisis time, and never recover until now. Opportunity is always there, you don't need to buy at the bottom to make money. You may miss the opportunity to make 50%, 80%, 100% return, but if well equiped yourself, and invest wisely, getting a 10%, 15%, 20% return also very good. While if invest wrongly, money burned resulted in little capital left, which eventually you lose many many more opportunity in the future as stock market is no capital, no talk. Even almost after 3 years since the crisis, i'm still in beginner level But when the next crisis come along, i know i'm more well-equipped than before Thanks, cherroy...for advice & infos |
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May 19 2011, 11:34 AM
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QUOTE(wongmunkeong @ May 19 2011, 07:56 AM) HJebat, my calc of per transaction's net profit / loss, even if still held (thus pre-calculated), assumes: I can't get the bolded part...Current Closing Price (or selling price if i just sold) + Dividends Received Less Costs: Purchase cost Selling Cost (pre-calculated) and divided into 364.25 days pa of time between purchase and selling to get XX%pa profit/loss The ears? "" - i like ears, nice to hold, especially beautiful women's Seriously though, i put "" as it's my personal definition of net profit / loss, even if still held. Some people tracks net profit / loss held without including the cost IF sold now. I'm more pessimistic that way Current closing price + Dividends : RM2.25 Less costs : RM1.55 Bought in 2008 & assume that i sell in 2011. How do i do the math when i reach the bolded part? |
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May 22 2011, 03:24 PM
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QUOTE(wongmunkeong @ May 19 2011, 12:20 PM) To be clearer, i'll use the example below. Your data needs to be more specific in terms of Dividend amount, date bought (2008 isn't a date, it's a year), date sold wong,Eg. Bought: 1/1/2008 Bought at $1 Units: 3,000 Dividends: $0.10 single tier Sold: 30/06/2009 Sold at $1.20 Units: 3,000 a. Cost of Purchase = ($1 * 3,000) +brokerage +stamp duty I'll assume here that Cost of Purchase = $3,043 b. BEP = Cost of purchase - Net Dividend received, say $3,043 - $300 = $2,743 c. Net Profit = Sales - (brokerage + stamp duty) - BEP, say $3,600 -$21 -$2,743 = $836 Thus the pa% returns calculation based on the above (in Excel formula) would be: ((BEP +Net Profit) / BEP) ^(1 / (Date Sold -Date Purchased) /364.25) -1 where: (BEP +Net Profit) / BEP = simple Profit % (er.. minus 1 please from here) where: (Date Sold -Date Purchased) = days held. Dividing this by 364.25 days will get U years where: ^(1 / blah blah). The basic formula is derived from S = P * (1+%)^n Anyone thanks for your effort. Appreciate it I tried but failed spectacularly Not up to your standard yet. Nonetheless, i'll keep your formula for future reference. |
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Jun 11 2011, 05:05 PM
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