Comments on Dividend Growth Investor: Six Dividend Stocks for current income

love your blog. What do you think of MFA and NLY ...

2009-10-28T04:09:51.723-07:00

love your blog.

What do you think of MFA and NLY as long term dividend stocks?

Thank you
Lisa

Hello, first time posting. This is a great forum....

2009-10-27T14:14:08.775-07:00

Hello, first time posting. This is a great forum. I like the philosophy and am learning a lot.

Say...anyone know a similar forum for REITS? I'm trying to learn more about them as well.

Thank you.

Hi, Thanks for the information. For REITs I would...

2009-10-21T13:42:31.759-07:00

Hi,

Thanks for the information. For REITs I would use FFO not DPR, but that's just me ;-)

Hi, Before you decide to invest in Realty Income ...

2009-10-21T05:26:33.477-07:00

Hi,

Before you decide to invest in Realty Income (O), check out Pershing Square Capital Management's presentation on why they are shorting this REIT.

The key take-away points:

(1) Occupancy issues:

* Most of its tenants have junk ratings & occupancy will deteriorate
* Re-leasing will be difficult
* Profitability is levered to occupancy

(2) Valuation issues:

* Comparable REITs cap rates are higher
* Asking cap rates for its own tenant properties are higher
* Realty's mktvalue/sqft is higher than the going average price/sqft for individual properties

(3) Dividend cut possible:

* Dividend coverage ratio is minimal

(4) Insiders:

* Very little stock ownership by management
* Considerable inside selling
* Equity dilution likely

Presentation: http://www.marketfolly.com/2009/10/ackman-pershing-squares-realty-income-o.html

Thanks for wonderful posts...