High Dividend vs Growth Stocks

[Investmentrealm]

I will avoid buying just for dividend now, with US tapering. If interest rates go up, dividend stocks esp those with debt like reits may be hit.

yes, you are right.
But it will then provide an opportunity to enter the Reit market again. Anybody remembered Cambridge at 20 cents during the crisis?

[momoeagle]

Set your criteria for buying. Once your criteria is there, it becomes almost automatic to know when to buy or sell.

Personally I will buy a REIT if it satisfies a few criteria.
1) financially strong sponsor.
2) proven management but this is hard to judge
3) price below NAV. But do consider that NAV changes along with valuations. Preferably more than 20% below NAV but not always.
4) good yield. This is relative, and depends on the type of REIT and the market conditions
5) gearing. High gearing is what makes me not buy keppel reit at the moment, though under consideration.
6) debt profile (my latest criteria)
Preferably spread over few years and on low interest rates bonds for interest stability. This makes CMT an attractive choice for me.


So far only CMT, CCT, starhill and aims almost meet these criteria for me.

My 2 cents.

[Temperament]

Set your criteria for buying. Once your criteria is there, it becomes almost automatic to know when to buy or sell.

Personally I will buy a REIT if it satisfies a few criteria.
1) financially strong sponsor.
2) proven management but this is hard to judge
3) price below NAV. But do consider that NAV changes along with valuations. Preferably more than 20% below NAV but not always.
4) good yield. This is relative, and depends on the type of REIT and the market conditions
5) gearing. High gearing is what makes me not buy keppel reit at the moment, though under consideration.
6) debt profile (my latest criteria)
Preferably spread over few years and on low interest rates bonds for interest stability. This makes CMT an attractive choice for me.


So far only CMT, CCT, starhill and aims almost meet these criteria for me.

My 2 cents.

Agree.
But not vested yet except the TY6Z 3.08% bond that is going to trade 1st time this Friday. Reits to me are more for income investing but still MOS counts a lot in any purchase of investments.

[thereserved]

Kinda dangerous if we get attracted by the high dividends as it might just be an one off thing, good example is hafary


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[corydorus]

Kinda dangerous if we get attracted by the high dividends as it might just be an one off thing, good example is hafary


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Well is still dividends. Just that people may not be looking at it correctly.
Usually not just the last annual or last Q dividends.

I will look at the past years and sustainability by the business.
The point is, still dividends. Investor not looking correctly is not the fault of Dividend Play.

[thereserved]

Kinda dangerous if we get attracted by the high dividends as it might just be an one off thing, good example is hafary


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Well is still dividends. Just that people may not be looking at it correctly.
Usually not just the last annual or last Q dividends.

I will look at the past years and sustainability by the business.
The point is, still dividends. Investor not looking correctly is not the fault of Dividend Play.

Yup yup true that. That's what I meant by not getting trapped by those one of high dividends yield but go for those who have maintained a consistency in their dividend payouts over the years.

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