I hope I don't discourage you in any way but we are naturally skeptical around here. IMO it's for our own good, and we make each other better stock pickers. When I see a stock recommended here I often give it a 10 minute look and look for warning signs. I am looking for a few REITs so I checked out NRZ. REITs often have high DIVs but when they get over 10% I need to know what happens next year if the BIZ dips. IIRC from yesterday here is what I found easily, and I hope you can calm my concerns.
-Publicly traded about 3 years, it's had a good run so far.
-Chart looks pretty bad currently, is any of this based on fundamentals or just a tough market?
-Not followed by many analysts yet but those that do rate it overweight
-The DIV is about 11%, the payout rate is about 80% and projected to rise to the 90%+ range. That's a red flag because I don't want to own it if they cut the dividend in half. That is ALWAYS a painful day.
-PE is sub 5, that's pretty low even for a REIT, Why?
-Profit margins are good so they are doing something right.
-And most importantly, how do they make money? I thought they were involved in home building at first, but it is a residential REIT. Are they renting? Loaning money? I didn't try to dig up an earnings conference call. Just curious if you can summarize their BIZ in a few sentences?
Thanks
-Publicly traded about 3 years, it's had a good run so far.
-Chart looks pretty bad currently, is any of this based on fundamentals or just a tough market?
-Not followed by many analysts yet but those that do rate it overweight
-The DIV is about 11%, the payout rate is about 80% and projected to rise to the 90%+ range. That's a red flag because I don't want to own it if they cut the dividend in half. That is ALWAYS a painful day.
-PE is sub 5, that's pretty low even for a REIT, Why?
-Profit margins are good so they are doing something right.
-And most importantly, how do they make money? I thought they were involved in home building at first, but it is a residential REIT. Are they renting? Loaning money? I didn't try to dig up an earnings conference call. Just curious if you can summarize their BIZ in a few sentences?
Thanks