I have mentioned the danger of seeking false security by switching to high dividend stocks when the bear market was still pulling down everyone pants(skirts). I believe we have seen the falling knife hit the ground, on the average of 38% drop from the peak. It has bounced back about 7% on the average from the low.
I believe the great panic 2008 should be behind us. Even the price were to drift to a final low with slow torture, there should be very limited downside. The time has arrived to pick up these stocks on the pull back. At the current price, the industry wide yield is about 10.7%. If the prices were to drop by another 10%, we should be able to breakeven within 1 year, the risk-reward is quite compelling.
(Click images to enlarge)
1 comment:
Jan-Feb is time most REITs announce 2rd Income distribution. Invest in REITs now, not only mitigate any further downsize risk but potential positive return through income yield, which is much better than 12 month FD
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