UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: Reitnut Big red star, 1000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77644  
Subject: Re: PSA Preferred Sets a new low yield Date: 3/10/2013 7:15 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 13
Sailmac says, Personally, I'd rather have a 3.5% dividend yield and growth than a 7% but no growth and the inflation risk that comes along with that.

This is an entirely logical decision, and I certainly sympathize with it. As I posted earlier, I am slowly but steadily redeploying much of the capital that's being returned to me via pfd redemptions (and even doing some pfd tapering) into common equities.

However, we should keep in mind that REIT pfds are very bond-like, and comparing bonds with common stocks is like comparing classical music with hip-hop. Yeah, they are both "music," much as bonds and commons are both "investments," but their differences are as great as their similarities.

So whether to concentrate one's portfolio on REIT pfds or REIT and other commons should depend on a ton of factors, including but not limited to one's risk aversion, his/her outlook for the US economy, inflation and interest rates, the investor's time horizon, and the kinds of returns one "needs" to fulfill investment objectives.

Why not own both, but in proportion based on some of the factors suggested above?

Ralph
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

Related Boards
Real Estate Investing
This is a great board for Real Estate other than REITs.

Buying & Selling a Home
Get your personal advice about mortgages, agents, etc. here.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Considerable Headwinds for Profire Energy?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement