RE:RE:RE:RE:RE:Awful Day...babedinkleman wrote: whodathunkit wrote: babedinkleman wrote: Why exactly did this ever move up to $20 in the first place? Serious question....not bashing.
Given the nature of the business isn't it more appropriate to be trading around $16-$17 with a yield of mid 6.5-7%? I was watching in recent months wondering why the heck it was trading so strongly with no real catalyst.
With a dividend of $1.35, which is 54% of their trailing FFO, the dividend seems safe. If you assume a 7% divy is reasonable for them, then the share price should be $19.28. A 6.5% divy would see a share price of $20.77. So with it trading in the mid to high $19's, based on your comments, that would seem to have been a fair price. For some reason though the yield on this has tended to run closer to 8% until recently. Maybe the market was hoping for a dividend increase based on better qtrly numbers and therefore ran up the share price. Now that that hasn't happened maybe this is the backlash.
The reason for the drop doesn't matter to me. The fact that it has dropped means I think I will be picking up some more shortly.
Cheers.
Oops you are correct....my dividend calculations were off.
Unless there's something else we don't know about, this is now way oversold. I was considering buying some more at the $17.25 mark but now it's a no brainer.
Cheers.