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Something to consider is, the REIT needs to pay at least 90% of its net income to continue to qualify as a “REIT”. So the dividend rate cannot go below that.
Dividend yield is a different metric. It’s calculated as dividend dollar amount / price per share. The REIT can reduce its dividend dollar amount, but it cannot go below 90% of its net income. IGBREIT’s dividend yield is lower than its peer because its share price may be overvalued, but not without reason. Share price is always forward looking, which means it usually reflects what investors expect the company or in this case, the REIT will perform in the future. The fact that its DY is 4.61% and lower than its peers could mean that investors may expect the DY to rise to 5 or even 6% in the future.
Lol stupid companies, do you know what it takes to go public my friend? Don’t let emotions get to you in investing, but if you’re trading based on technical analysis without enough research on fundamentals, that’s just plain risky gamble.
@Yap Idk bro, I’m far from a guru. But good question, depends on their risk strategy, appetite and actuarial calculations. Pretty sure it’s more quant than qual approach. In a perfect world, insurers would hold at least 100% of potential claims in cash.
