QUOTE(WTF2008 @ Jun 6 2018, 03:43 PM)
Hi All Sifu,
Need advise over here. Not sure if its out of topic. How do you compare REIT with ASx?
It seems REIT company average dividend yield ranging from 5% - 7%, whereby ASx , can get 6% at min at least.
Is it not worth to consider at all REIT?
Thanks
Depends. There's a few reason reit is have such high dividends
1) risk of unsustainable dividend hence market priced it lower. The lower the price, the higher the dividends for all things equal.
2) interest rate is going up. If a reit doesn't hedge their borrowing and cannot pass on the hike to the business renting the place fast enough, expect dividend to drop.
You need to check and see if the dividend is sustainable or not.
I have not seen a Malaysian reit giving so high returns. I assume you are talking about Malaysian reit?
Keep on mind that reit price is not static. It depends on the market price. It can act as a double edge sword.
If the price appreciates, then good for you. If the price went the away, you could be worse off.
Amanah saham fixed price funds are basically static. So you cannot suffer a loss. The only thing you can suffer is opportunities cost. Putting your money to work and earn higher returns than amanah saham.