What’s up guys? I hope everybody is doing fine! My monthly fund contribution is on the way to my brokerage account and it will be cleared in a few days. I will be making a new purchase by the end of this week.
If you remember, back in January 2018, I was debating between Brookfield Properties (BPY) and Plaza Reit (PLZ). Back then I bought BPY and I’m glad I did, because today PLZ’s shares are 10% cheaper.
Today, you can invest in Plaza Reit for just under $4.00 per share and collect 7.11% dividend. Just a few months ago the dividend yield was 6.3% because the shares were more expensive.
Historically, this stock trades between 10 to 20 % premium to its book value. However, at the current share price, the market offers these shares for 13% discount to books. They never been so cheap in the last 5 years.
Plaza Reit also has the cheapest Price/Book ratio among its peers.
Plaza - 0.9 P/B
Riocan – 1.0 P/B
Smart – 1.1 P/B
Choice – 1.2 P/B
CT Reit – 2.4 P/B
With my monthly contribution and accumulated dividends I will have enough cash to buy around 220 shares of Plaza. Let’s hope for the share price to stays below $4.00 before the end of this week.
Hey dis
ReplyDeleteWith all the talk on this and quite a few people buying it, im seriously interested in starting a position!
Hope it stays under 4 bucks for ya
Cheers
Thanks man! Already did! I bought another tranche of shares today for $3.90!
DeleteLooks like I started a trend on this stock...haha......good luck hope you get some shares!
ReplyDeleteI'm currently dripping 6-7 a month now..
Good luck!
That's cool! I don't drip, I just do cash because I like to choose how I want to reinvest my dividends. I happy that Plaza trades at these level. My position in PLZ is now full.
DeleteAwesome dividend mate. Looks like an awesome time to initiate a new position.
ReplyDeleteThanks dg! Thanks for stopping by. I recently bought another tranche of shares so my position in PLZ is now full.
DeleteI don't own any REITs. Used to own REF.UN but sold it when it was acquired by Choice or soon to be. When I look at that chart I can't help but wonder if the distributions make up for the capital erosion. That yield is high and makes me want to be cautious. Good luck with it:)
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