Dividend Knight Portfolio

[Dividend Knight]

Looks. Very. REIT heavy. Good luck

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Hi BlueKelah.....

REITs form around 58% of my overall portfolio. I believe REITs are still a good source of investment income provided we pick the quality ones by using a bottom-up approach in our analysis.

[Dividend Knight]

The dividend yield of about 4% seems rather low for a portfolio so heavily invested in REITs. Were many of the holdings recently added?


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Hi Vingaard...

Most of my REIT holdings were initiated during the taper tantrums back in 2013...

[Dividend Knight]

Yield can be measured on Cost of Stocks and on Price (Current Valuation)
I think is a big mistake if one use just yield as a benchmark to setup their portfolio.

Hi cory...

Yield is definitely never the first metric I look at when I analyse REITs.....

I adopt a bottom-up approach. As we move towards an increasing interest rate environment in 2017, I look at healthy gearing, well spread-out debt maturity, low all-in debt costs, high percentage of total borrowings hedged on fixed rates, high interest coverage ratio. Of course, having a strong backing from a sponsor is a bonus....such as Maplatree, CapitaLand etc etc

[Wildreamz]

http://www.investopedia.com/articles/04/110304.asp

The 15-year period examined above shows there is a strong inverse relationship between REIT prices and interest rates.

Read more: The Impact Of Interest Rates On Real Estate Investment Trusts | Investopedia http://www.investopedia.com/articles/04/...z4TXsmXcOc
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Not an expert in Macro Economics nor REITs. But do be careful.

[dividendangel]

hi dividend knight, have not read your updates for very long.
any update for us?