Posted on 06/18/2022 8:03:49 AM PDT by American Number 181269513
“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.”
The point he is making refers to a long term investing strategy. As in many years. My portfolio averages over 20 years.
You might research REIT Financials, particularly those of O.
“No Junior, that’s not what I meant to say.”
At least you now know that what you said was incorrect.
Thanks boss. Might want to look into it, that’s all. Maybe do another google search. You know, just for good measure.
It’s important to understand the tax liability of an investment.
And that’s all you get for free. Now go play outside and get some sun!
Sorry, I ended it and here I go starting it up again up again, but where’s your gurl?
I was just thinking about that ‘tard the other day. Haven’t seen it in a while.
Start with long term versus short term capital gains then go to qualified dividends.
I’ve owned O for a long time and have built a nice income stream from it. It fits my particular needs but I also own a couple of other REITs. REITs are not just limited to traditional real estate investments so bear that in mind when doing your due diligence.
My broker put me in commodities. Turnip futures. He’s in Nigeria but seems like a nice guy.
I wouldn’t buy any stocks until after November the deep recession is nearing a depression unless things change in November to pull back Biden’s crazy rulings.
Strong post.
Also PE at 65+ is a little high for my taste.
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P/E ratios are not generally used to value REITs.
A better metric is P/FFO.
I actually don’t care about PE ratios in general.
If I like a stock I buy it, regardless.
However, I threw it out there because some people on Free Republic do care.
I had someone pushing this hard. the realestate under CVSs and Riteaids etc.
Mostly inner city stuff when you come right down to it.
There was the push that these commercial sites will never fail.
Well they do and often.
REITS are always risky.
Haha!
“A favorite realty mutual fund of mine is down 19% since April.”
This one lost 50% when covid hit. I dont like a 4% dividend when when you could lose 10 times that in a month or two of a market down turn. At least getting 4-6% in some stodgy utility your more protected.
Start with long term versus short term capital gains then go to qualified dividends.
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Qualified REIT dividends may be entitled to a 20% deduction on pass-through income when certain conditions are met.
P/E ratios are just one of many valuation metrics, but it is widely used as a starting point when assessing a stock’s price relative to its industry peer’s.
Overpaying for a stock, or anything else for that matter, can make it hard to make a decent profit. Paying too much also greatly increases your downside risk. But to each his own.
REITS are always risky.
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All investments are risky. The number of things that can go wrong with a company is endless. That’s why the concept of a margin of safety is so important — it is one way to help minimize your downside risk.
Through 2025. I just fill in the blanks in TurboTax!
I’m on the West Coast where real estate valuations are “beyond stupid.” If its not farmland\woodland or industrial real estate, I’m not touching it with your money.
IMO American capital is trying an “inflationary push” in real estate to hedge their malinvestment in nonessential commercial activities.(See the current bloat & fat on Wall Street)
There is a demographic factor that rarely gets talked about on Free Republic, but is a huge deal when talking about inflation vs deflationary pressure, moving forward.
Boomers(1944-1965) absorbed a huge amount of inflation between 1968-1982.
My position currently is “Boomer offspring’ aren’t going to be able to absorb the current rate of inflation that took hold with the Biden Presidency.
So my belief is short term inflation(2 to 3 years) with deflationary pressure winning, at the back end of the 2020’s.(Boomers dying off)
You have been warned—if it crashes as interest rates rise...
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