Posted on 06/18/2022 8:03:49 AM PDT by American Number 181269513
If everyone was investing based on MF, everyone would be a bankrupt.
> For starters, most companies with dividends pay quarterly, while Realty Income pays monthly. <
Yes, the author made other points. But that seems like a pretty thin reason to buy a stock.
Anyway, thanks for posting. I’ll be watching this thread for other opinions. Like you, I have some money that need to be deployed. I dunno. Right now I’m leaning towards a money market fund until things settle down. But that’s probably the wrong thing to do.
My first thought is that this may no longer be true (easy to release or sell) with the culture changing to work-from-home or hybrid. I know my company is aging off the leases on about 1/3 of our office space and it not replacing any time soon. Is retail going to be any better? It almost sounds like Target and Kohls are going the way of Kmart and Sears.
Still, some numbers will help. Realty Income estimates that if you had purchased the stock on the last day of 2011, your yield would have been around 5%. Thanks to regular dividend hikes, however, your yield on a purchase at the end of March 2022 would have been 8.5%. That’s the power of slow and steady dividend increases.
Not saying this is a bad investment and should/should not be a part of investment but note the above is “cherry picked”.
I’ve bought REITs in the past. You do get good income, but the value of the security dwindles over time, offsetting the income. And you pay tax on the income. Most of these were a net loss, all things considered.
“cherry picked”
Not cherry picked. That is a very important part of his reason for buying the stock.
This thread comes dangerously close to shilling for a product. I’ll let the moderators decide.
> If everyone was investing based on MF, everyone would be a bankrupt. <
Motley Fool started out as an interesting place. But now they seem to be a mixture of crazy Jim Cramer and a typical tease investment site - become a premium member, and we’ll name one stock that’s about to double!
Maybe they still throw out good stuff now and again. But I stopped following them years ago.
Real estate is about to crash.
Interest rates will hit 15-18% like they did under Jimmy Carter. Gas lines coming as well.
Real estate will topple. Too expensive. Foreclosures will skyrocket.
Commercial real estate is already in trouble as people are working from home. Companies will go to this more as gas prices go up.
Once President Harris is installed (Slow Joe clearly won’t make it to 2024) markets will tank further and faster.
Look for the market to go down another 20% in the next few months. Midterms and impeachment may help.
We need to take the House. Select Trump as Speaker. Then impeach Biden for selling out his country - all the evidence is on Hunter’s laptop and it’d be an easy case to make. Harris would not have been selected unless she, too, was compromised. Kaine was a closet homosexual. I assume Harris was on the take and the evidence is out there. Once the cabal occupiers are out and Trump is sworn in we can turn things around.
This time Trump needs to complete purge D. C. Truly drain the swamp. Disband and reform agencies or just end leftist infiltrated ones.
Going to be a bumpy ride.
The Mormon cult with their one-year supply of food seem to have the right idea. Better have the guns and bullets to defend your stash and family.
The timing is cherry picked, don’t ignore that.
Just be aware. Past performance is not future performance.
“I’ve bought REITs in the past. You do get good income, but the value of the security dwindles over time, offsetting the income. And you pay tax on the income. Most of these were a net loss, all things considered.”
Realty Income has gained value.
My REITS have gone up along with paying good dividends.
You bought the wrong ones.
This is literal rent seeking.
You may get some good dividends for a while, but the real estate market is about to fall through the floor, and if you care about morality in your investments, this is a moral loser. A big part of the reason why things are so distorted in the real estate industry is because of institutional investment in the rental markets. Big companies buy up houses in all cash purchases that individual families otherwise would buy (but can’t compete for prices against a cash rich cpmpany), then rent them out to the same families, skimming profits while the families don’t build up equity or develop a sense of ownership within the community. The hedge funds make out like bandits, but they’re sucking entire regions of the country dry.
True, shills.
Isn’t there a heavy tax penalty with this type of investment? I think it’s taxed at your income rate and not capital gains rates. But I’m no expert...
“The timing is cherry picked, don’t ignore that.”
It was the last 10 years. Typical of its long term performance.
“Just be aware. Past performance is not future performance.”
But it is an indicator of good management and good management is an indicator of future performance.
Thanks for posting American, you are one of the reasons that FreeRepublic is great.
Making thinkers of us all.
But it is an indicator of good management and good management is an indicator of future performance.
I am just telling you eyes wide open.
My first thought as I was reading this, is what happens when the real estate bubble bursts, and when major communities revisit rent control? We’re going into a recession, what happens to real estate then?
A favorite realty mutual fund of mine is down 19% since April. I’ve been out of it since Brandon got into the WH. I’ll let it go down further before I jump back in.
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