Hi all
Recently discovered REITs as quite the popular choice for many people because of the high dividend yield and general stability.
I am just wondering what exactly are the risks of investing in established, stable REITs? Especially for those very established REITs that pay quarterly dividend, the dividend yield can go up to 7/8% (for Singapore REITs), am I missing something here? (See FD8U -Frasers Commercial Trust)
Even if we were to go into an economic downturn, as long as the REITs are still making profit, they are required to distribute 90% of profit to enjoy tax exemption (in Singapore). Not to mention, the dividend income I get is also exempted for tax! So why is it that you don’t hold a portfolio of REITs and gain dividend income with high certainty, low volatility, even if we are heading down someday? I literally don’t see any way I’m losing money with REITs.
Pardon for the ignorance and I appreciate any contribution :)
P.S. also would like to ask about the difference between multiple dividends and cash dividends!
Submitted May 25, 2018 at 05:53AM by theinverse_ https://ift.tt/2sbIXiG
