Post by
BlueGuitar1 on Dec 11, 2020 5:15pm
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.
Comment by
thenewsnake on Dec 11, 2020 6:28pm
Good thing government is paying rent
Comment by
CANCDN on Dec 11, 2020 7:05pm
Choice REIT lol. You have got to be kidding me right? You do realize it is literally a front to have other people subsidize loblaws right? next thing you know you will be slinging CDn Tire reit around here I suspect you know that though and are hoping for a better entry point her at Rio can.
Comment by
Shirtlessnomore on Dec 11, 2020 11:42pm
0% chance, nobody holds a stock for 2 more months then dumps because of 4 cents. If they wanted out they'd be gone. Most people realize you can probably sell a stock for more before ex dividend then after....