RE:Interest in RioCan Stock might be waning?BlueGuitar1 wrote: 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.
First of all the distr cut is effective for Feb distr, So if there is sell off it would happen in after ex-div in Dec.
I know choice very well. I agree about safe payouts but if you look at SP range over the past 5 years is between 11-14. Not much upside.
There are lots of other like Shaw communication that the distr is 5+.
I do agree any issues with vaccines would cause a market crash across all sectors. This is my biggest concern as we move into 2021,
Good luck to you