And we're back!
Started by MadImmortalMan, December 21, 2009, 04:32:41 AM
Quote from: Tamas on January 02, 2010, 06:47:26 AMSo let's say your family has some modest saving accounts, plus about 10k$ which could be used for the hope of a somewhat higher yield. Where to put it? Assuming (and this is quite unlikely, sadly) that there is reasonable access from a Hungarian brokerage to foreign funds, would it make any sense to put half of it in a couple of emerging market funds, and the other half into the whatever-its-name gold ETF? Thinking along the lines of course that if there is yet another crash, people will flock to gold, while if there will be a consensus that teh depression is over, emerging markets would take off again?
Quote from: Admiral Yi on January 09, 2010, 06:10:03 AM The great majority were real estate investment trusts, which I know nothing about (but if anyone feels like explaining why so many are on a list of high dividend stocks, feel free). 6+% dividend yield on the AT&T.
QuoteWhy REITs Deserve Your AttentionKevin Grewal, Contributor10/09/09 - 09:30 AM EDTNEW YORK (TheStreet) -- As the real estate market shows some signs of prosperity, real estate investment trusts have been drawing investor attention and for good reason.At the commercial real estate level, REITs are attractive because they offer an opportunity to a debt market that banks, insurance companies and other financial institutions are not considering. A weak labor force, declines in consumer spending and other recessionary factors put pressure on income-producing properties and increased stress on the loans that these properties supported. In turn, this created an opportunity for REITs to lend to these income-property owners.As for residential REITs, they are drawing attention because of their record-low prices. Some investors think that the worst has past for residential real estate and are looking to buy when prices are low. The trends in both commercial and residential REITs has enabled the iShares Dow Jones US Real Estate(IYR Quote) to reap the benefits. The ETF is up 90% from its March low of $22.21 to close at $42.21 on Thursday.This attractiveness appears to be emerging globally as well. In fact, international REITs are drawing even more attention because they earn profits in foreign currencies and are enabling investors a new way to hedge a weakening dollar. As a result, the iShares FTSE/NAREIT Global ex-US(IFGL Quote) has more than doubled from its March low of $14.63 to close at $30.41 on Thursday.When investing in these equities, keep in mind the inherent risks that are involved. A good way to mitigate these risks is through the implementation of an exit strategy, which tells investors specific price levels when an upward trend in equities could be coming to an end. Such an exit strategy can be found at www.SmartStops.net.Written By Kevin Grewal in Laguna Niguel, Calif.
QuoteREITs With 15% Yields Grab InvestorsJake Lynch07/22/09 - 02:00 AM EDTReal estate investment trusts, or REITs, have suffered since the recession hit. But many investors threw out the babies with the bath water. Annaly Capital Management(NLY Quote) and MFA Financial(MFA Quote) are two misunderstood REITs that offer huge yields and are poised to rebound.To further limit risk, consider gaining exposure to the two stocks through the First Trust Specialty Finance and Financial Opportunities(FGB Quote) closed-end fund or the Burnham Financial Services(BURKX Quote) mutual fund.Annaly is a REIT that manages a portfolio of securities, including collateralized mortgage obligations, pass-through certificates and callable debentures. As the subprime mania seized the market, the stock was battered. It has fallen 15% since February 2008.After posting a fourth-quarter loss of 95 cents a share, Annaly resumed profitability in the first quarter as net income rose 44% to $350 million despite a 10% drop in revenue. The operating margin remained exorbitant at 96%, and the net margin widened 28 percentage points to 48%. Like most REITs, Annaly's capital structure is skewed toward leverage, which is evident in its debt-to-equity ratio of 6.The trust invests in mortgage-backed securities that have actual or implied AAA-ratings. By doing so, it minimizes credit risk. And the company generates above-average returns by leveraging its positions. Although that strategy sounds reminiscent of Bear Stearns or Lehman Brothers, it isn't. The company efficiently regulates risk. Its operating performance has been remarkably consistent during a period of financial tumult.Annaly distributes income to shareholders through cash distributions. The yield is currently 15%, more than four times that of the S&P 500 Index. Mortgage-backed securities are still cheap because of investors' aversion to real estate and an effort by banks to purge their balance sheets of so-called toxic assets.Annaly is seizing the opportunity to borrow at low rates and invest in undervalued securities. The downside to its stock is affordability. The shares have surged 22% in three months and now trade at an expensive price-to-earnings ratio of 20. But the high yield compensates for a costly share price.MFA offers a similar story. It's a mortgage REIT specializing in hybrid and adjustable-rate mortgage-backed securities. But MFA, unlike Annaly, swallowed its major loss in the first quarter of 2008 and has since achieved four consecutive periods of earnings growth.First-quarter revenue rose 28% to $132 million as the company swung to a net profit of $54 million, or 23 cents per share, from a loss of $86 million, or 61 cents per share, in the year-earlier period. The operating margin remained steady at 96% and the net margin stretched to 41%. The pitch is the same as Annaly, but MFA is cheaper. The stock trades at a price-to-earnings ratio under 7 and offers a 14% yield. TheStreet.com Ratings gives MFA a "hold" recommendation because it has a slightly weaker financial position.
Quote from: Monoriu on January 03, 2010, 11:03:26 AMNothing wrong with that, if "high risk; high return" is what you're after.
Quote from: Ed Anger on January 10, 2010, 05:11:07 PMI'm investing in canned goods and shotguns.
Quote from: HVC on January 10, 2010, 05:19:30 PMQuote from: Ed Anger on January 10, 2010, 05:11:07 PMI'm investing in canned goods and shotguns.hope you remembered to invest in some shells and can openers too
Quote from: Monoriu on February 02, 2010, 05:26:28 AMI don't know about Hungary, but my own experience is that it is very, very difficult to set up an offshore account. Banks only do it for their most wealthy clients. You may have a shot if you have US$1 million in liquid assets (i.e. not counting the equity in your primary residence). But even that is no gurantee.
Quote from: Admiral Yi on January 09, 2010, 06:10:03 AMI had a little Christmas money to put in my IRA and ended up putting it in AT&T. I figured we aren't going to see any more significant increase in prices for a while, so I browsed the list of high dividend stocks on E*Trade's stock suggestions. The great majority were real estate investment trusts, which I know nothing about (but if anyone feels like explaining why so many are on a list of high dividend stocks, feel free). 6+% dividend yield on the AT&T.
Page created in 0.031 seconds with 19 queries.