Yield hogs will be slaughtered

Last month, I sold a Growth and Income REIT that I've bought 1.5 years ago.

It's was yielding 9% at price of purchase;and has since gone up by 40% in capital gains when I sold it.

Total returns is slightly more than 50% for 18 months of "waiting". (I am hiding behind percentages for a reason. A blogger friend's experience has taught me sometimes it's better to be coy!)

I replaced it with a beaten down S-chip that's "only" yielding 3%...  I am speculating that this S-chip will grow by at least 50% in capital gains within my 6-18 months time frame. (Some call it sector rotation)

Hey! I've told you I'm an equities man-whore didn't I? 

OK, I jest! 

The real reason is that I find this S-chip offers a better risk-reward margin of safety for me than the REIT that I've bought at "wholesale prices. 

And when others are willing to pay "full retail price" from me, I sell!


Funny... I never even call myself a value investor?


For those of you who are new to dividend plays, you may want to take a look at this Bloomberg's video:

Yield hogs will be slaughtered 

And if you want to know when you have fallen into a dividend trap, I've this old post:

Dividend trap