TSX:AX.PR.E - Post by User
Comment by
Torontojayon Aug 25, 2024 4:04pm
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Post# 36195342
RE:RE:RE:RE:RE:CAD 10-YR BOND YIELD AT 3.03%
RE:RE:RE:RE:RE:CAD 10-YR BOND YIELD AT 3.03%
garyreins wrote: Bonds and GICS dont have inflation hedge. "Earnings miss or dividend cut"? I just said if a REIT is able to sustain a 10% AFFO on the assets indefinitely (no improvement, no losses), and interest rates are 3% its a very suitable return for income investors without any growth. Growth is always ideal but if you rely in income and its way higher than a savings rate then you cant go wrong
First of all, Reits are not bonds or gic's.
When the share/unit price goes higher the dividend yield or affo yield is lower c.p. Otherwise, you would be just happy to collect the dividend and not complain about the share price.
Long term reit investors want both yield and some
capital appreciation which is a hedge on inflation. The cash flows should grow with inflation.
I do not buy bonds for yield for the sake of this argument. Long term bonds can have excellent capital appreciation potential if you know when to buy.