Welcome Guest ( Log In | Register )

Bump Topic Topic Closed RSS Feed

Outline · [ Standard ] · Linear+

 REIT V2, Real Estate Investment Trust

views
     
goo5257
post Aug 3 2011, 10:50 PM

New Member
*
Junior Member
28 posts

Joined: Mar 2009


Hi everyone, I am newbie who just start to learn to invest. However, due to stock exchange has higher risk. So, have to give up for this moment. Just read this reits investment. I see everyone seems like very happy receiving the dividends. May I know how frequently they distribute dividend? One more thing is all the reits price is quite high. Almost all of them is nearly Rm 1. 1k units require RM 1000. I just start to work no longer. Not much saving. Buying 5k units can earn from dividend? I expect I can learn much much more than FD.
goo5257
post Aug 4 2011, 11:57 AM

New Member
*
Junior Member
28 posts

Joined: Mar 2009


QUOTE(thenightcrusader @ Aug 4 2011, 08:13 AM)
congratulations on thinking of investment the moment u r deriving a source of income. before you start, it's recommended to  have at least 6 months worth of emergency funds though. now on to your questions, reits distributes dividends four (4) times a year, meaning every quarter. now bursa 1 lot=100 units and no longer 1000 units hence making it more affordable since RM1=1lot=100 units=RM100 on your side. look at accumulating small numbers at a consistent basis. more units=more dividends and capital appreciation potential. generally yield from reits are in 6-8% region which is about 2x the FD rate.
*
I always think to invest instead of putting money in bank to let them invest. Not a wise choice though. biggrin.gif By the way, what is the minimum amount to buy the reits so that the dividend is far enough to cover for the broker's fee. I dun want to buy separately. I want to buy it in one shot so that wont charged for each transaction. Let say I buy RM 5k reits, can estimate roughly how much I can earn from that? Your 6-8% yield is yearly? It means that I can earn RM 5k x 0.06 = RM 300 per year?
goo5257
post Aug 4 2011, 09:32 PM

New Member
*
Junior Member
28 posts

Joined: Mar 2009


QUOTE(wongmunkeong @ Aug 4 2011, 12:25 PM)
8%*(100%-10%tax on dividend distributed)
*
I do not understand your equation. You mention that YD 8%. Then calculate to get net YD %?

If dividend distributed is in cent or percentage?I confuse ade...


goo5257
post Aug 5 2011, 08:24 AM

New Member
*
Junior Member
28 posts

Joined: Mar 2009


QUOTE(wongmunkeong @ Aug 5 2011, 07:03 AM)
Assuming that most people say DY%, they mean gross Dividend Yield:

gross DY% = dividend yield based on the price paid BEFORE tax

To get the "$ in pocket" version of that, please remove 10% tax to get net DY%
Hm.. i thought i did state gross DY% and net DY% in my earlier posting. Waitaminit.. i did! Bro - English lar, read lar. Spoon feed meh doh.gif


Lol...Sry bro...But I did read that. What I mean here is I do not understand your equation.

Let's say TWRREIT stock price is RM 1.09.

DY = RM 1.09 * 8% = RM 0.0872

If I got 3k amount of stock, RM 3k/RM1.09 = around 2.7k unit.

The dividend I got is RM 0.0872 * 2.7 k = RM 235.44 each year

This is how I calculate without deduct anything yet. Is it correct?

This post has been edited by goo5257: Aug 5 2011, 08:27 AM
goo5257
post Aug 5 2011, 10:11 PM

New Member
*
Junior Member
28 posts

Joined: Mar 2009


QUOTE(wongmunkeong @ Aug 5 2011, 08:49 AM)
So des kah. Since DY% is already a % of the current price and assuming it's the current price U buy in:
IF price bought in $1.09
AND gross DY8% at that price
AND U bought in with $3,000 at the above time
Gross DY expected = $3,000 * 8%
Net DY expected = $3,000 * 8% *(100% -10% tax)

Note that your calculation was based on Units and mine was based on transaction $. I'm assuming U are calculating EXPECTED gross & net DY. Of course when U really receive the $, U then calculate yr actual DY% using:
a. Simple net DY%: Dividend Received / Total Cost of Transaction

b.DY% pa:
( (Dividend Received + Total Cost of Transaction) / Total Cost of Transaction )
^( 1 / ( (Current Date -Purchase Date)/364.25) )
-1
tongue.gif Derived from the ever handy S = P *(1+%)^years


Thank for your explanation. Much clearer now. I have a question. If I buy at stock price 1.09, if it increase to 1.50. I sold it out. Assume I buy 1000 units. So, I earn 1.50*1k - 1.09*1k = RM 410 without deduct transaction fees. Is it correct? So it works exactly like stock also? But Reits just a much steady compare to stock. Also, the DY is much higher as well? Other advantages?

This post has been edited by goo5257: Aug 5 2011, 10:11 PM
goo5257
post Aug 5 2011, 11:41 PM

New Member
*
Junior Member
28 posts

Joined: Mar 2009


QUOTE(wongmunkeong @ Aug 5 2011, 10:34 PM)
You're spot on with the profits. REITs are just a type of stocks leh - traded on the same market and method biggrin.gif

+DY% is USUALLY higher (some are lousy like normal stocks')
+thus prices are usually steadier
-thus unfortunately prices are usually steadier, it doesnt fall and rise as much as normal stocks

IMHO - the flux in normal stocks' price is what gets the gold, whereas the DY% in REITs keeps U nourished biggrin.gif
If stocks' price dont flux, how to buy low & sell high?

FYI - from end 2008 / early 2009 after the recent 40%+ KLCI crash,
my REITs are making me only 20%+pa
VS
normal stocks like LPI & PBank which is making me 30%+pa to 50%+pa
all held till now - total returns (cap growth, splits, etc + dividends received)
*
Honestly, I really spot on the profits only. biggrin.gif I believe everyone do that also. Haha...The REITS stock price wont change much even after one year or more? I observe it few days ade. Seems like got increase few cents. But I not sure whether it will drop down again. Recenyly market too lousy. It makes me feel scary and not confident. So not dare to play stock. May be invest REITS enough lol... whistling.gif

Topic ClosedOptions
 

Change to:
| Lo-Fi Version
0.0190sec    0.70    7 queries    GZIP Disabled
Time is now: 9th December 2025 - 02:50 PM