3D·

RioCan

Over 5% dividend yield, monthly payout 🇨🇦

RioCan REIT $REI.UN (+0,86 %) earns from shopping centers & residential projects in prime locations - stable tenants, steady cash flow, real dividend power.

Share price weakening? No matter. Rent still comes in. 😎

👉 5% from Canada or would you prefer $O (-0,34 %) from the USA?

07.10

RioCan Real Estate Investment Trust Units

Recibío x24,49 dividendos por valor de 0,0965 CAD

2,363 CAD

6 Comentarios

Ella M.@DividendenWaschbaer

Share price negative over 20 years, payout ratio of 126% and negative dividend growth over 5 and 10 years.

I can think of more lucrative investments.

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Kai@Dividenden-Sammler

I would prefer $O if I were you.
The reason for this has already been explained by @DividendenWaschbaer.

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Christian@Investor-College

@Dividenden-Sammler $O is not one bit better, see my post below.

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Kai@Dividenden-Sammler

@Investor-College you can't value REITs like "normal" shares sorry. Please familiarize yourself with the REIT model first.

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Christian@Investor-College

@Dividenden-Sammler Absolutely correct. That's why I wrote that the criteria differ in this sector. Nevertheless, I am sticking to my assessment, because the criteria for this sector are of course included in my valuation.
I have learned a lot in my 27 years as an investor, don't worry.

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Christian@Investor-College

Please do not be blinded by supposedly high dividend yields, but always take a look "under the hood". The question must be: "How healthy are the companies and how sustainable are they?" @DividendenWaschbaer recognized this immediately and correctly.

So how should we proceed? Here is my approach:

I have defined 8 criteria that I believe characterize the quality of a dividend stock. I award points if the relevant criterion is met.
The criteria are:
1. payout ratio (POR) --> <75% (über drei Jahre hinweg; 1 Punkt)
2. Verschuldungsgrad --> <200% (über drei Jahre hinweg; 1 Punkt)
3. Dividendenwachstumsrate (Dividend Growth Rate DGR) -->>6% ideally over 1,3,5,10 years (up to 4 points)
4. return on sales --> >5% (over 3 years; 1 point)
5. equity ratio --> >=30% (over 3 years; 1 point)
6. return on equity (RoE) --> >=15% (over 3 years; 1 point)
7. free cash flow margin (FCM) --> between 5% and 30% (over 3 years; 1 point))
8. Annual earnings growth --> 8%-12% (over 5 years; 1 point)

Makes a maximum total of 11 possible points.

In addition, the total return (price gain + dividend) should be >10% over 1, 3, 5 and 10 years (maximum 4 points).

This makes a maximum total of 15 possible points. Depending on the sector, there are a few adjustments (e.g. payout ratio for finance and REITs may or must be around 100%)

For $REI.UN this results in a narrow 7 points, the same number of points for $O

A payout ratio of 343%(!) for $REI.UN and 254%(!) for $O (average over 3 years) alone should set alarm bells ringing. I would never put either stock in my portfolio - a pre-programmed losing trade according to my criteria.

If required, I can provide the individual points per criterion and share.

If REITs, then I would consider $VICI (12 out of 15 points) and $PLD (13 out of 15 points).

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