Saturday, April 11, 2015

Can You Count on Dream Office REIT’s 8.2% Dividend?

In today’s low-interest-rate world, dividends of more than 5% are often treated with extreme skepticism.
Most of the time, investors are onto something. But if the market has beaten up a stock to the point where the yield looks pretty enticing, there’s something wrong. Sometimes this problem is fixable and represents a good buying opportunity. Other times, it’s the beginning of something much more dire, which eventually leads to Armageddon for dividend-growth investors. Yes, I’m talking about the dreaded dividend cut.
Among the struggling high yielders, there are often great opportunities. Sure, they’re few and far between, but they’re worth looking for. Finding the right opportunity gives an investor the chance to get a capital gain that beats the market, while collecting an oversized dividend. That’s the kind of combination I can really get behind. (more)
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