IAS Recommends Three Promising Stocks
Posted on Monday, March 3, 2014
In the February issue of IAS, the editors recommend three promising stocks. One is a company that makes fashion accessories; another resells cars and the third is a real estate investment trust (REIT). This REIT offers a good total return with about half of it coming in the form of a monthly cash dividend.
To analyze a REIT requires a different approach from looking at a typical operating business. A REIT operates diverse types of real estate holdings and can avoid paying corporate income tax by distributing most of its income to shareholders. REITs generally aren’t suitable for investment clubs because of the complications that come with the unusual record-keeping. But this particular REIT meets many objectives of the IAS
formula for a company that has a good track record of paying dividends and a transparent portfolio of long-term leases, including information about when they will expire. Click here to subscribe to IAS