Just For Thinking ....
There is no free lunch in investing. It is about risk adjusted rewards.
Paying for a premium dividend yield???
Paying premium for future but uncertain earning growth e.g. dividend-growth stocks.
A case study since Uncle8888 has previously thought of Sabana as passive income too.
Sabana vs Kep Corp
Paying 2.8% premium for a blue chip yield that has earning visibility up to 2019.
Worth it or not?
Posts
Hi CW,
ReplyDeleteI think the expected 9 cents dividend is a bit optimistic.
Sabana has 3 more master lease up for renewal this year. I use only 8 cents, as I believe they are not able to negotiate a higher rent despite higher cost due to master- leases becoming multi- tenanted. Of course only a few more quarters would be more enlightening after we study in on hindsight.
Nonetheless, I believe the underlying business of renting industrial spaces and assets are ok, and there is a limit of stupidity from the management. If they do not do any more stupid stunts, I think current low price does give some compensation in terms of risk-reward profile.
(Vested)
And don't forget which company is most likely to ask for money to replenish their capital. Aka rights issue.
ReplyDelete