Post on 30-Jul-2015
transcript
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Hi, My name is Aaron and I‘m with Dividend Stocks Research, and today
were reviewing our recently published article…
What’s not to love about a company that has doctors as it clients?
A company that owns more than
$500 million worth of medical office buildings, and collects rent like
clockwork from doctors and health care businesses?
Physicians Realty Trust (DOC)
After all, the doctors aren’t going to walk out their leases, are they?
Well...
You’d think not. And you’d figure that a REIT with medical office buildings would be a safe bet.
Physicians Realty Trust (DOC)
But here’s the problem with Physicians Realty Trust (DOC).
It doesn’t make very good real
investments. Take a look at the net margins, and you’ll see they’re -23%.
Return on equity is -3%.
These are well below industry averages.
Physicians Realty Trust (DOC)
And there’s another reason Physicians Realty Trust isn’t a healthy addition for
your portfolio.
It’s paying out more in dividends than it can afford. Something’s got to give
when your payout ratio is over 100%.
Takes two aspirins and cancel your appointment with DOC.
Physicians Realty Trust (DOC)
Dividend Yield: 6.25%Annual Payout: .90
Payout Ratio: 101.1%But here’s the problem with
Physicians Realty Trust (DOC).
You guessed it.
A REIT that owns what the industry calls “manufactured home communities.”
Granted, some of these homes don’t look
like trailers.
But when you look at UMH Properties (UMH), a REIT with 86 communities,
14,800 developed home sites, you want to run for cover.
UMH Properties (UMH)
If tornadoes seem to have a fondness for crashing through trailer parks, you know it’s just a matter of time before
UMH Properties takes a thrashing.
Why?
Do you think a dividend payout ratio of 101.1% is bad? How about 128.6%?
UMH Properties (UMH)
Net margin is -5%, and return on equity is -3.5%.
And expenses are soaring, up 23%
the first quarter of 2014 over 2013.
UMH Properties (UMH)
All in all, not a good neighborhood for a dividend investor.
Best to go manufacture your dividends someplace else.
Dividend Yield: 7.35%
Annual Payout: .72Payout Ratio: 128.6%
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