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Industry Discussions / Real Estate Inv. Trusts: REITs


Subject:  Re: Why REIT's Date:  6/24/2021  10:46 AM
Author:  GDavenport Number:  86735 of 86855

The dividend security is always something to watch closely, of course.

The other consideration is to ALWAYS consider the current value of the investment. If the value has moved up, additional purchases through dividend reinvestment or other funds is recommended.

Independent of this, the PRICE of the shares currently is always the consideration for forward returns, NOT the cost basis.

That cost basis game is dangerous because is blinds us to the value of considering alternate places to put our principle.

Using cost basis for the basis for dividend and capital appreciation in total returns is only helpful if we need to consider tax and inheritance events.

Using the above, It would be much more appropriate to use the current pricing of $23.07 (6/24/21) and 4.5% dividend rate for calculations, not the basis.

Otherwise, you would never sell as the years pass by. This is simply because you are not valuing your investment at the current market pricing (and, with additional calculation, fair value).
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