When a stock's yield climbs above 10%, it's usually a sign that investors think the company's dividend is unsustainable. However, occasionally, an ultra-high dividend yield highlights that the market severely misunderstands a company. Investors have driven this REIT's dividend yield to an incredibly high level out of fear that FFO will continue declining. Here's what Mr. Market is missing...
Pennsylvania Real Estate Investment Trust (NYSE:PEI) looks like a prime example of the latter phenomenon. The stock has lost half of its value since last spring -- and three-quarters of its value since the fall of 2016 -- but investors are misinterpreting a plunge in the REIT's funds from operations (FFO). With FFO likely to return to growth in 2020, PREIT stock could regain much of the ground it has lost.
Source: Motley Fool
Related Articles:
- Why Dividend Growth Stocks Are Evil
- 4 Higher-Yielding Financial Services Stocks With Rising Dividends
- 5 Higher Yield Dividend Growth Stocks
- Successful Investors Take The Emotion Out
- 5 Under-Valued Dividend Growth Stocks
This 14.6%-Yield REIT Stock Has Tons of Upside
Posted by D4L | Tuesday, April 02, 2019 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
-
Today we'll talk dividend deals. Big payers. Stocks yielding up to 10.3% and trading for as little as three-times free cash flow (FCF). ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.