The performance of REITs can be examined from several perspectives. First, because the most REITs are publicly exchanged companies (Brueggerman and Fisher, 2005), their performance as business entities can be judged based on the performance of their shares on the public stock exchanges. In this respect, studies regarding the performance of REITs have compared their performance against relevant market (market portfolios) benchmarks such as Standard and Poor’s 500 (S&P 500), NYSE, and the NASDAQ composite. Such studies have yielded blended results.

In fact, empirical results relating to REIT performance within the last four years have been at best combined and lack consensus, especially when it comes to the performance of REITs compared to relevant benchmarks. In general, prior studies on REIT performance have attained one of four conclusions. Evidence from the literature also suggests that REITs perform in different ways over various time periods when compared to the stock market.

Other studies have analyzed the long-term qualitative aspects of the REIT marketplaces such as appropriateness of REITs for several traders (Bergsman, 2001; Haddock, 1998; Zell, 1998). Other studies examined REIT performance for shorter intervals Still. Brounen et al. (2000) examined equity REITs between your period 1993-1999 and found that REITs have a high market capitalisation. Previous research on REITs in addition has focused on the utilization of several actions of investment performance. Overall, researchers have offered divergent views on REIT performance, particularly when compared to the currency markets profile. Studies examining REIT performance have also examined such performance over the long term or higher in the short term.

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Column D implies that BAC’s dividend payout has averaged 39.4% of cash flow per share. Column D also shows that the dividend payout percentage has been increasing significantly with dividends representing about 30% of revenue ten years ago and about 50% today. That is graphic evidence of a board of directors that is ready and willing to return to its shareholders a fair cut of the profits. Column E implies that BAC has experienced price growth of 12% per calendar year, which is similar to dividend growth, as is the situation with rising dividend shares often.

The brief answer is we don’t know. We believe the best way to assess a company’s likelihood of being fair to its shareholders is to look for precedents from its recent. In this case, we mean dividend decisions they made when things were difficult. There is a powerful precedent-setting action contained in Table 1. In 1998, BAC’s revenue fell nearly 20% versus the last year. Remarkably, BAC, displaying their unquestioned financial power, elevated their dividend by nearly 14%. We see three good things to take from their activities: A. They properly saw that the troubles of the time were temporary.

B. They did not make a token dividend increase; they elevated their dividend at the same rate as that they had been doing before the income weakness. C. Their proper activities prior to 1998 created a strong financial condition that allowed them to take care of the rough spot easily. Donaldson Capital Management has been utilizing a dividend-oriented investment approach since our founding. The next time I am going to discuss the long-term statistical correlations between dividend growth and price growth. I believe you will be amazed at the findings. All data shown here’s taken from sources believed to reliable. DCM cannot guarantee their accuracy. Data might not total properly due to rounding.