My adventure with REITs started just after (former) ARCP reported accounting irregularities and their price plunged from $12 to $8. It offered attractive yield and reasonable AFFO (Adjusted Funds From Operations). The dividend (as could be expected) was suspended, but the AFFO was largely intact and the business has been stabilized by the new leadership.
The share price fluctuated a bit, reaching >$10 for some time, but recently declined with raising interest rates, reaching $7.26. I do not see things negatively here, so I substantially added to my position on the way down, with VER now being my 4th biggest stock, comprising ~10% of my holdings.
I'm treating REITs as a 'stabilizing' part of my portfolio - not something that will rise a lot, but also without significant downside. The returns are fairly predictable and above the cash/bond alternatives.
When I learned about the recent general drop in Utilities' prices I researched this topic a bit and decided to focus on Pacific Gas & Electric. The market discounted it not only on interest rate raise, but also on California wildfires. The dividend suspension also did not help. I think the first two problems are overblown and I don't mind for the dividend at all. The valuation seems attractive enough to provide decent expected return over time. As of today, only the first of my limit orders triggered, getting PCG to become ~1% of my portfolio. Hopefully it goes down further to trigger my other buy orders so I can build a decent stake.
The share price fluctuated a bit, reaching >$10 for some time, but recently declined with raising interest rates, reaching $7.26. I do not see things negatively here, so I substantially added to my position on the way down, with VER now being my 4th biggest stock, comprising ~10% of my holdings.
I'm treating REITs as a 'stabilizing' part of my portfolio - not something that will rise a lot, but also without significant downside. The returns are fairly predictable and above the cash/bond alternatives.
When I learned about the recent general drop in Utilities' prices I researched this topic a bit and decided to focus on Pacific Gas & Electric. The market discounted it not only on interest rate raise, but also on California wildfires. The dividend suspension also did not help. I think the first two problems are overblown and I don't mind for the dividend at all. The valuation seems attractive enough to provide decent expected return over time. As of today, only the first of my limit orders triggered, getting PCG to become ~1% of my portfolio. Hopefully it goes down further to trigger my other buy orders so I can build a decent stake.
