CA - Allied Properties: 11% Yield Is Not Enticing
2024-07-09 11:51:33 ET
Summary
- Allied Properties has underperformed since our last article.
- We go over 3 reasons why we feel that it should have dropped even more.
- We still favor more defensive options, and bulls should not use the 11% yield as a crutch.
On our last coverage of Allied Properties ( AP.UN:CA ), we gave you three compelling reasons why we had a preference for another REIT. While H&R REIT ( HR.UN:CA ) did not boast of such a lofty yield as Allied, we felt it offered a better risk-reward. Those who have followed our work know that we look at the actual yield last, after we have looked at everything else. We want a sound company with a good capital structure that is generating boatloads of cash flow per share. How they use that, as in whether they pay it out or retain it, is not the most important thing. If you trust management and the company fundamentals, the dividend yield is not what should swing your vote....
Allied Properties: 11% Yield Is Not Enticing