REITs paying stock as dividends
Wednesday, February 4th, 2009REITs are now allowed to pay out dividends in stock and not cash. Simon is one of several that have taken advantage of the new rule, and will pay out 90 percent of their dividend in stock.
I like this idea, even though it’s been greeted with a great deal of hand wringing in the media by analysts in the media who are concerned about this diluting existing shareholders.
This new rule allows REITS to preserve cash, and this is an important time for any investor to preserve cash. And if I need the cash, I can immediately sell the shares. I’d rather get my dividend as cash than see my dividend cut.
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