REIT V5, Real Estate Investment Trust
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 Oct 9 2013, 09:41 PM
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#1
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Senior Member
3,459 posts Joined: Jan 2009 
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I do not understand why buy REIT mainly to get 5-6% annual yields when they are so many high-yielding dividend stocks which can give such yields and some more can get capital appreciation when the stock price rise.
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Oct 9 2013, 10:00 PM
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#2
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Senior Member
3,459 posts Joined: Jan 2009
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QUOTE(jasontoh @ Oct 9 2013, 09:45 PM) Last time there are many stocks giving > 6% DY, but now very less....even then the REITS yield was like 8-10%. Can you give me some high yielding dividend stocks so that I can increase my holdings on high yielding div stocks? Well, I'm still a newbie, sort of. But I think maybank is 1 such stock. 4-5 year ago, price only RM3+ but now nearly RM10 - this gives a capital appreciation of over 20% pa. I saw in the maybank thread that it is giving like 5-6% yield. Take another blue chip stock, Nestle at about RM68 per share now. 5 yrs ago, just RM28 - also give an annual capital appreciation of about 20%. Div yield based on latest div payout also give over 3%. This post has been edited by topearn: Oct 9 2013, 10:02 PM |
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Oct 9 2013, 10:16 PM
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#3
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Senior Member
3,459 posts Joined: Jan 2009
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QUOTE(jasontoh @ Oct 9 2013, 10:08 PM) Well, my friend, here is the news. No one knows that Nestle will become >60 and Maybank will become RM10 few years back. All people are interested is the stable yield that the REITS can provide. If you track back, most REITS are actually giving you plenty of capital gain if you bought REITS few years back. Anyway, based on current price Nestle is giving about 3-4% DY, while REITS giving about 6-7%. If you want stable income, definitely REITS giving higher return; no doubt I will still get those blue chips, but for better DY, if you can name me a counter giving more than REITS, I'll really appreciate that. Thanks in advance. Thanks for your feedback which got me thinking U R right since REIT is really into the business of giving good dividend yields from thier rental income as that is their only business so they r experts in this area and rightly so will be able to generate excellent yields. On the capital appreciation side, would REIT shares has the 5 years historical data to check on thier appreciation rate ? |
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Oct 9 2013, 10:27 PM
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#4
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Senior Member
3,459 posts Joined: Jan 2009
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QUOTE(jasontoh @ Oct 9 2013, 10:24 PM) I don't really have the data; but I can tell you some REIT that I have been holding is giving me >50% capital appreciation. I do know that some veterans are enjoying few times the capital appreciation that I enjoyed. So, go figure. Wow ! Maybe I'll take a peep at these REITs ! |
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Oct 10 2013, 08:26 AM
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#5
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Senior Member
3,459 posts Joined: Jan 2009
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QUOTE(yok70 @ Oct 10 2013, 02:01 AM) major criteria to pick your REIT: excellent management + excellent assets quality. Can U just give me 2 such stocks so I can take a look ? Thanks in advance.as interest rate are likely to moderately increase in next few years, it's best to choose one with profit growth potential to protect capital depreciation.  happy long term investing.  |
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Oct 10 2013, 08:32 AM
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#6
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Senior Member
3,459 posts Joined: Jan 2009
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QUOTE(felixmask @ Oct 10 2013, 08:31 AM) I share mine....axreits & sunwayreits Thank you. Much appreciated. |
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Nov 25 2013, 08:55 PM
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#7
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Senior Member
3,459 posts Joined: Jan 2009
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QUOTE(Pink Spider @ Nov 25 2013, 05:52 PM) I quote u, u quote me, he quote u Join the circus.....sure become the star attraction........the giraffe man Unker! I wait DeeGee and Dai-Boh-Ji til neck very long liao, any other rekomendasi?!  |
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Dec 2 2013, 02:30 PM
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#8
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Senior Member
3,459 posts Joined: Jan 2009
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QUOTE(gark @ Dec 2 2013, 01:04 PM) Having an all REIT portfolio is NOT diversification, it is actually having all your eggs in ONE basket... There are different levels of diversification. Having many REITs counters is also diversification vs putting all funds in just 1 REIT counter.Similar to people having all property stocks an all plantation stocks.. have zero diversification. A diversified portfolio means they will have low or negative correlation, e.g. the movement of stocks is opposite of each other... A all REIT portfolio moves in a single direction only...  Similarly having all your funds in a diverdified portfolio of just stocks can also be said putting all your eggs in 1 basket unless U also put funds on real estate, precious metals (like gold, silver), FDs, etc. f market crash and all your funds in a diversified portfolio..........there goes your retirement and year-end holidays...and then everyday can afford to eat maggie mee for breakfast, lunch and dinner only. This post has been edited by topearn: Dec 2 2013, 02:34 PM |
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Jan 9 2014, 10:08 PM
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#9
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Senior Member
3,459 posts Joined: Jan 2009
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QUOTE(gark @ Jan 9 2014, 05:32 PM) I think the yield is sufficiently high for people to borrow to invest, hence the downside is quite low. This is the same case which happen in 2010. That time i was contemplating on borrow to invest in yield but in the end forgo it, due to the risk. BLR - 2.4% =4.2% borrowing cost ? What sort of loan is that - housing loan ? If personal loan would be much much higher like 10% or more. Some of my friends did it and cash out handsomely....Now borrowing cost is BLR-2.4% = 4.2% REIT's average NET yield = 6.2% Net margin = 2% Of course leveraging up pose significant risk, but it depends if anyone want to do it.  |
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