Housing Crisis: Time to shop for dividends
By J. Christoph Amberger
Taipan Group's Dynamic Market Alert
Housing Crisis: Time to shop for dividends
by J. Christoph Amberger
U.S. construction activity fell 2.9% between May 2006 and May 2007. That's not all that much, to be sure… until you realize that residential construction is down 17.3% since May of 2006.
Residential builders like Toll Brothers and Ryland Group are suffering. The competition to get rid of property portfolios is lowering asking prices and even mortgage rates offered by developers: If below-market rates can help sell cars, why not houses?
Commercial real estate, on the other hand, continues to boom, growing 15.4% over the past year. Retail and office buildings are still being built at a record clip, thanks to the booming economy and healthy domestic demand for goods and services.
But there's no denying that real-estate-related stocks have suffered as a result of homebuilder and subprime lender trouble. REITs especially have taken it on the chin after years of spectacular growth. In many cases, the loss in stock value does not reflect mismanagement, collapsing revenues or lack of business acumen, merely that the company is part of an industry that is has become unfashionable.
Situations like this create beautiful bargain situations. We have located one of them, a stock with a health 30-40% upside that still continues to pay a 6% dividend like clockwork. We've pulled the specific recommendation together for you in a special research report. This paper is called the “Real Estate Dividend Grabber TFN Research Report” and it’s available for you this weekend.
Quote of the Day
“Another unfortunate irony is that while Democrats think they're striking out at the rich, they're actually jeopardizing the retirement portfolios of millions of middle-income Americans. Firemen, police officers and teachers, to name a few, are all represented by the big state and city pension funds. And these funds are heavily invested in the hedge and private-equity funds that the Democratic tax machine is targeting. Is this fact lost on the Democrats? And don't they realize that two out of every three voters in recent elections owned stocks -- either directly or indirectly?”
- Larry Kudlow, June 28, 2007
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