Wednesday, March 5, 2014

Two investments and a possible third

I've been following Dundee Real Estate Investment Trust (D.UN) and H&R Real Estate Investment Trust (HR.UN) for some while. I like both as do a number of analysts. Both REITs support dividends big enough to help dig themselves out of any dips in the market that may appear in the future. D.UN has a yield of 7.76 percent and D.UN yields 6.13 percent.

I already own quite a number of D.UN units. If I add at this time, I will dump some of my early holdings as soon as they climb back into the black. Having pocketed a nice yield, I will walk away from those first shares with a smile on my face.

The third investment I have been watching is Surge Energy Inc. (SGY) This one is a toughie. The biggest negative is I understand that this is not a profitable company at this time. I tend to steer clear of companies operating in the red.

So why am I watching Surge? Two reasons: one, a number of respected (by me) analysts like Surge and are rating it a "Strong Buy." The other reason is the yield. SGY is delivering 9 percent today. This is one of those do-you-feel-lucky-punk investments. I wouldn't put money that can't be lost into Surge but I have a little wild money sitting on the sidelines. It may be time to put that money in the game.

Of course, the wild card today is Ukraine. If tensions continue to mount in the euro-asia country, markets may hit a rough patch. If they do and if one or more of these  three becomes a bargain, I'll be in with both feet.

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