QUOTE(Boon3 @ Apr 18 2014, 10:56 AM)
now I believe the last option is possible...
when the bull market dies/crash/mati/kaput/or whatever you want to call it....
I believe there's a possibility that REITS could go down hurt by the crashing market sentiments.
Now if one gets yield of say 6%....
what if the stock price of the REIT falls 20% due to the crashing market?
Can 6% cover 20%?
My point?
Many always fail to remember when one calculates yield, the price of the stock is used in the calculation.
And the problem here is the price of stock is NOT going to be constant.
STOCK PRICE can fall one!
Can the dividends received offset the falling price?

My big big boss told me...
"Pinky! How old are u now?"
"30"
"Let's say u buy a stock with 5% yield and hold til u 50 yrs old, your cash divvies represent 100% of your cost. Paper losses are irrelevant, anything left of the stock price is a 'bonus' for u in addition to your divvies"
I live by that investing rationale
This post has been edited by Pink Spider: Apr 18 2014, 11:02 AM