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Saturday, January 19, 2013

Dividend growth of REITs

Just checked dividend history of singapore REITs, the dividend growth is very low, ~0.2% per year. In general, it won't be far away from GDP growth. So the investment strategy for REIT is to go in at downturn, ensure the dividend yield is acceptable for long term at enter point, eg. >8%.
The best timing is crisis, when dividend yield soar to >15%! So even consider 0.2% growth, every year still can enjoy the initial yield.

Buying price is important, especially REITs.

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