Posted on 06/18/2022 8:03:49 AM PDT by American Number 181269513
This assumes retail shopping at physical stores continues, right?
This article reminds me of the old joke:
Q. Do you know how to become a millionaire farmer?
A. Invest two million dollars in a farm.
;-)
Quick! Invest in this company so you too can help end private home ownership, Yay!
“My REITS have gone up along with paying good dividends.”
Congrats.
Now—sell them. I think you know what is going to happen next.
“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...”
(But I’m no expert...”). I agree! I think you meant to say long term capital gains rate. as short term capital gains are taxed at regular income rates.
If you hold the stock for more than a year then dividends are taxed at the long term capital gains rate.
If any dividends are considered return of capital they are capital gains.
That's a good point. Perhaps wait for the R.E. collapse then maybe reconsider.
(Once President Harris is installed (Slow Joe clearly won’t make it to 2024) markets will tank further and faster.)
He’s made it longer than I thought he would. I say that because he didn’t look good on the campaign trail.
I can’t imagine what’s coming with her. The next level.
Meanwhile I’m surrounded with flippant normally bias.
Friends don’t have food because ... ,”it doesn’t last”.
I guess rotating the supply is like crazy difficult, huh?
If their stock price was in $25 to $35 range, I might buy.
However, its $60+ so I’m passing.
Also PE at 65+ is a little high for my taste.
As noted their dividend is good.
They do have solid institutional investors:
Vanguard
Blackrock
State Street
Cohen & Steers
Bank of America
I just don’t see these guys squeezing out much more on this stock.
Dividends are not capital gains. They are taxed as dividends, at your normal rate. Dividends are never capital gains.
The graph conveniently starts are year 2000. In October 2019, the stock had a high of $79.25. Then it dropped to $48.31 in March 2020, and is slowly recovering. It is now at 64.87 per share. The PE Ratio is a staggering 65.86.
“Now—sell them. I think you know what is going to happen next.”
Nope. Had them for 30 years. Along with my other good dividend stock.
My dividend income taxed at a lower rate goes up and over the long term so do the stocks.
REITs + Recession = I’m old enough to have seen how that story ends. And young enough to remember.
And that was without the impact of Work from Home/Hybrid.
“It almost sounds like Target and Kohls are going the way of Kmart and Sears.”
I’ve been thinking that for a few months, especially with Target’s recent announcement:
https://www.fool.com/investing/2022/06/14/targets-inventory-is-a-big-problem-heres-what-inve/
Bump
“Dividends are not capital gains. They are taxed as dividends, at your normal rate. Dividends are never capital gains.”
You need to consult a CPA for your taxes!
Dividends aren’t free money — they’re usually taxable income. But how and when you own an investment that pays them can dramatically change the dividend tax rate you pay. There are many exceptions and unusual scenarios with special rules — see IRS Publication 550 for the details — but here’s generally how dividend tax works.
What is the dividend tax rate?
The tax rate on qualified dividends is 0%, 15% or 20%, depending on your taxable income and filing status. The tax rate on nonqualified dividends is the same as your regular income tax bracket.
https://www.nerdwallet.com/article/taxes/dividend-tax-rate
Ping for later.
No thanks.
Bank your funds into cash until the market recovers.
No sense in flushing it away.
This won’t be over for another 2.5+ years.
” We’re going into a recession, what happens to real estate then?”
We had a recession in 2008. Buy 2012 REITS were double pre-recession values.
No Junior, that’s not what I meant to say.
Long time no talk! We should do this more often.
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