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REITs are not for speculation. Of course if you buy low, your dividend yield is higher. Bought at 1.61 or 1.63, calculated dividend yield was 7%. Don't rush to buy. 1.70 is high. Wait for it to go lower then you enter.
If you merely wish to gain dividend from the stock, then just compute the current (dividend) yield given current share price, that will give you an idea on if the stock is currently overpriced or not. It does not really matter if at the current price, the stock still meet your minimum return requirement. One person may want a return of 7% while another can be satisfied at 6%, so the former would be willing to pay a lower price while the latter would accept a higher price.
Oh I'm not so sure about that Steven. If you look at the 6.75% dividend yield, it is taking the last 4 dividends (0.0229 + 0.0224 + 0.0248 + 0.049) and divide it by current share price (1.75).
Now, we know that the RM0.049 dividend is worth 2 quarters. So do do your due diligence. The current dividend yield is, on average based on latest 3 quarters, only 5.26%
[(0.0229 + 0.0214 + 0.0248)*(4/3 quarters)] / 1.75
Yeah like Steve said, REITs are for long term. It's essentially similar to owning properties, where your income are derived from rental payments. So the stock is pretty much thinly traded.
I believe REIT stocks have to pay out 90% of their revenue as dividends to be able to call themselves as REITs, do correct me if I'm wrong.
