Frasers Commercial Trust has recently announced it's Distribution Reinvestment Plan for the period 1 Oct - 31 Dec 2017. Due to the recent market correction, it's share price has also fallen quite a bit. In my opinion, it may be a good opportunity to accumulate more Units when a company's share price has fallen during a market correction. However, the dividend yield based on the offer price has to be attractive.
RSI at Oversold Level
My average purchase price was $1.333 and the offer price is $1.4508 per Unit as shown above. My forecast yield based on the offer price is 6.62% for the current year.
FCOT's closing price last Friday was $1.40. It's actually cheaper to buy from the market! However, we would need to pay commissions if we purchase from the Market. If we buy only a few hundred shares, it may not be worth it depending on the broker's commissions.
My Yield Forecast based on 9-2-2018's Closing Price. 6.86%!
My Previous Purchase Price. Screenshot from Stocks.cafe
I have made up my mind to receive cash and not choose Units for this dividend payout. Since the market is undergoing correction, there will be plenty of stocks going on sales. I could use the extra cash for investing opportunities. I may choose Units next time if the yield goes above 7% again. Yup. In my opinion, 6.62% dividend yield is not attractive enough at the moment for FCOT.
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