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Author: 1stEngr Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19483  
Subject: Stocks Paying Dividends Date: 5/14/2001 9:45 AM
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Sheila:
PBT looks pretty good as an income producer. I was very surprised to find that it pays a monthly dividend rather than quarterly. I am always thinking of payments as quarterly, bi-annually, or annually. My opinion has been upgraded considerably. I think I am going to get some. I thank you for bringing it to my attention.

Purtygud:
REITs for you to research might include: HPT, ENN, and JDN. All of these trade on the NYSE. Personnally, I like HPT and ENN more than JDN, because they are in the hospitality industry. JDN is more in the retail and office space. There may be too much office space coming to the market this year. There are many others. If you find a good one, please share the name with us.

Other good income producers would be BPT and PBT. However, they are royalty trusts. Typically, they provide high income with a "Depletion Allowance" that makes the income tax free.

1stEngr
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Author: sheilaoliver Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6707 of 19483
Subject: Re: Stocks Paying Dividends Date: 5/15/2001 7:39 AM
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1stE:

Regarding PBT, you say:
"Typically, they provide high income with a "Depletion Allowance" that makes the income tax free." So would this investment be most logical in a taxable account? It would seem to be redundant in an IRA.

You might like to look at MMA. I have owned it for 1.5 years. Last year's dividends were 87-93% tax exempt as they deal in low income housing products. K-1 here.

I am also investigating Buckeye Patners. BPL. This is a limited partnership in the pipeline business. Dividend almost 8% and steady. Seems not a bad vehicle for IRA.

Thank you very much for all input.

Sheila



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Author: 1stEngr Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6717 of 19483
Subject: Re: Stocks Paying Dividends Date: 5/16/2001 3:39 PM
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Dear Sheila:
I would be more inclined to put BPT in a regular account. I would put value and growth stocks into an IRA.

Thanks for the other tips. I will investigate.

1stEngr

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Author: rkmacdonald Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6728 of 19483
Subject: Re: Stocks Paying Dividends Date: 5/18/2001 12:41 PM
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Author: 1stEngr Date: 5/14/01 9:45 AM Number: 6703
REITs for you to research might include: HPT, ENN, and JDN. All of these trade on the NYSE. Personnally, I like HPT and ENN more than JDN, because they are in the hospitality industry. JDN is more in the retail and office space. There may be too much office space coming to the market this year. There are many others. If you find a good one, please share the name with us.

I can't comment on the REITs you listed, because I do not own them. However, I do own a number of other REITs and I need to point out that you have to be a little careful with REITs.

First, they are mostly small cap stocks, and quite thinly traded, which means that, at any moment, a big buyer or seller (insiders?) can come in and it will cause the price to gap up or down unexpectedly. This happens quite often with all small cap stocks.

Second, they are somewhat hard to understand. You use FFO (Funds from Operations) growth instead of earnings growth to guage the overall growth of the company and its ability to continue to pay dividends. This is due to the laws concerning depreciation of property, where property continues to have a large value even though it's been fully depreciated.

Third, finding FFO numbers is tricky. None of the online quote services that I have looked at show FFO. Again, traditional earnings, per GAAP rules are meaningless. So, I put together the following list of information sources:

A great book for REIT investing: 'Investing in REITs' by Ralph Block

Bay Isle (the company that Ralph Block writes for): http://www.bayisle.com/

REITWEEK Archives (written by Ralph Block): http://www.ire-net.com/pubs/rwarch.html

National Association of REIT Investors: http://www.nareit.com/portfoliomag/default.shtml

Realty Stock Review: http://www.realtystockreview.com/

Undiscovered REIT Managers: http://www.undiscoveredmanagers.com/

Institutional Real Estate: http://www.irei.com/

Russ



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Author: 1stEngr Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6742 of 19483
Subject: Re: Stocks Paying Dividends Date: 5/20/2001 9:07 AM
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To: rkmcdonald

I will look at the Real Estate section at TMF and the other resources you mentioned. I am new to TMF, and am learning to navigate slowly but surely. Thanks for the guidance.

I replied to the question that was posted about "Stocks Paying Dividends". Again, I replied for specifications and clarifications on the subject. I do not want anyone to think that I am strictly an income investor. My Merrill Lynch Statement is 17 pages, but REITs and Trusts are only 5 entries on those 17 pages.

1stEngr

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