“A high yield often indicates operating problems”

In Financial competency, Financial planning on 11/03/2016 at 1:42 pm

“A high yield often indicates operating problems. One should look for companies that have a long record of dividend growth, but which at the same time have reinvested into their businesses. This is essential for growth in earnings,” fund mgr quoted in FT.

Remember Reits are different, They are leveraged and must pay out most of their profits. If you own Reits like me, you’ll have to pay the devil’s price eventually: rights issues. And thaz assuming things go well.

  1. I supposed as long as bond yields remain low, REITs remain attractive. That’s the rest of the developed world REITs market. But S$ bond yields are driven by the MAS’ Nominal Effective Exchange Rate regime. In other words, S-REITs is at risk to a weaker S$ (which translates via the NEER into higher bond yields). Juz my 2cents

  2. these guys seem to show that even if you didnt subscribe to the rights issues, most REITs have provided a decent return since IPO

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