TSX:REI.UN - Post by User
Post by
BlueGuitar1on Dec 11, 2020 5:15pm
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Post# 32091073
Interest in RioCan Stock might be waning?
Interest in RioCan Stock might be waning?Let's face it, people like RioCan for the income. But...
By February, I expect a sell off as the dividend cut begins.
Future developments are years away so don't expect capital appreciation so far into the future.
At current levels, you will get 5.5% yield approx. There are other competing stocks and REITS to look at.
Covid Pandemic will not be over for another year, IMO, and this makes some of the assets toxic such as theatres, gyms, restaurants, apparel stores. Luckily there are lots of essential services too but don't expect the governement to bail out forever.
Any hickups in the vaccine will cause a market crash.
Risk on at this time.
Look at Choice Properties: payout ratio is 62%. They are years ahead in residential properties and being anchored by Loblaws, Shoppers Drug Marts and all the other food names, it is pretty safe, imo. It pays 5.5% dividend and is $4 cheaper per unit.
Summary: by February after the last high yield is paid, REI is going down.