This REIT's shares were kicked to the curb in March when the company issued its 2018 FFO guidance. The company's dividend yield has spiked to ~11 percent, suggesting that the market is increasingly concerned about the REIT's dividend sustainability. However, the REIT has not slashed its dividend before, and the REIT continues to cover its dividend with cash flow. An investment in it is only suitable for investors with a very high risk tolerance. Investors that rely on safe dividend income should give this one a pass for now.
Whitestone REIT's (WSR) shares plunged after the company released a soft FFO guidance for 2018 and missed FFO estimates for the fourth quarter. As a result, Whitestone REIT's dividend yield has spiked, reflecting increasing investor concerns that the dividend might be at risk. What should income investors do now? A company that reports lower funds from operations or that guides for a decline in FFO puts shareholders in a tricky situation. When a company guides for lower FFO and/or misses FFO estimates, it typically triggers a sell-off in the stock. And this is exactly what happened with Whitestone REIT in March.
Source: Seeking Alpha
Related Articles:
- 5 Dividend Stocks With A Low P/B Ratio
- Harvest the Fruit
- 4 Dividend Stocks Delivering The Secret To Successful Investing
- The Magnificent Marvelous Money Machine
- 5 Five-Star Dividend Stocks
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Over the years, few companies have served income investors better than the S&P 500 Dividend Aristocrats. To become a “Dividend Aristocra...
-
There is a company that’s doing exactly what you want to do: lending to venture growth stage businesses in the tech sector. Better yet, that...
-
Cheap valued stocks with high yields will never go out of style. I could go on about the powers of compound interest, but I think we're ...
-
First, and perhaps the most obvious, is that being able to enter biotech stocks at a cheaper price — assuming the companies are not fundamen...
-
This has got to be the most interesting high-yield opportunity to watch this earnings season. The company was already one of the most genero...
-
The steady stream of payments from dividend stocks can act as some ballast in the rough seas. After all, if you’re already getting a 3 to 4%...
-
I am adding to my existing long position in this REIT. The commercial property REIT has very convincing portfolio and dividend coverage stat...
-
In this day and age, quarterly earnings are arguably the most watched events in the stock market. And when a company reports its quarterly f...
-
Owning dividend stocks can be a great way to not only grow your portfolio but also get a tax-effective cash return on your investment. Wheth...
-
Owning high-quality, high-yield dividend stocks is the most effective way for investors to achieve outsize returns over the long run. But wh...
0 comments
Post a Comment
Post a Comment