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REIT
Death List
Here's a list of REITs that we
think are in danger of reducing their dividend payouts within the next
12 months. As you probably know, dividend reductions hurt shareholders
in two ways. First, your dividend yield drops, and then to add insult to
injury, the share price usually falls too.
The list is generated by
looking at each REIT's ratio of estimated dividends to funds from operations (FFO). Without sufficient FFO, a REIT must
either cut its dividend, or pay dividends by reducing shareholder's
equity. The screen looks for REITs with ratios above 100%, and also
requires a declining trend in analysts' FFO forecasts. Obviously,
not every stock on this list will end up cutting its dividend.
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