REIT terms Flashcards
(4 cards)
1
Q
REIT current yield
A
Current stock price/most recently paid dividend x 4
-multiply by 4 to make the dividend paid an annual amount
2
Q
Yield on Cost
A
Yield on cost = current quarterly dividend x 4 / shareholder’s per share cost basis
3
Q
Example of yield on cost
A
Suppose you bought $10 for common stock of NRZ, stock price is $15 per share and they pay a quarterly dividend oof $0.25. The REIT’s yield on cost is 10%
1/10 = 10% the annualized dividend divided by how much you paid for the stock
4
Q
‘Sucker yield’
A
Because of the high yield investors do not realize that the fundamentals are actually unpredictable and unreliable, which ends up leading to the dividend being partially or completely cut
