Luka 🦉's avatar
$104.1m follower assets
I just published a new YouTube video about 3 REITs that I consider cheap.

All three stocks are in my portfolio as a very long-term investment: $ESS $O $DLR
and satisfy my 3 criteria for the investment:

🔺 More than 15 years of dividend increase history
🔺 Dividend Yield > 5 Years Average
🔺 AFFO Payout Ratio < 80%

Dave Ahern's avatar
Cool video! 😁. Love the analysis and focus on an area I am weak in. Curious how you determine cheap or expensive in the REIT world? Do you use P/FFO or some other metric. Or can we use a DCF?? Sorry if this a dumb question
Luka 🦉's avatar
@ifb_podcast Hello, I tend to consider it cheap when the div yield is higher than the 5y average, but at the same time, the company keeps an AFFO payout ratio in line with the industry or, anyway, lower than its previous years, which is not that different from checking something like the P/FFO.

Of course, such a system works better for dividend aristocrat REITs and medium/large cap companies...
Dave Ahern's avatar
@stock.owl that makes total sense. Thanks for sharing 🙏

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