Thursday, 7 November 2013

New Purchase - DLR

I added 30 more shares of DLR today.

August 2013 purchase: 30 @ $55.13 ($54.80 before commission); initial dividend yield 5.66%

Today’s purchase: 30 @ $47.18 ($46.85 before commission); initial dividend yield 6.61%

My average cost per share, including commission, is $51.16.

This purchase will add $93.60 to my forward 12-month dividends, which sits at $5,180.58.

2 comments:

  1. ADY - I picked up a full position in DLR a few months back at $59 and it has been one swift ride downhill ever since! I have to say the steady (and prolonged) drop has surprised me a bit.

    I know they had a pretty negative analyst report that questioned their accounting procedures which played a large part in the first leg down. Then last week they gave poor guidance, which helped explain another smaller drop. However, it continues to edge down.

    I am usually very, very patient with my stocks, even if the face of large declines. This one however concerns me because I am having a tough time figuring out the downward drivers. I know some are concerned about competition from Google and Microsoft, but these are not new concerns and have been known for some time. Holding for now but will continue to monitor closely.

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    Replies
    1. This stock is definitely not for the faint of heart. I share your concerns and must admit that I am taking a gamble with this one. It was my intent all along to make a quick buck with this REIT and will probably sell if it hits the mid 50's.

      Although the latest quarterly results were not great, I didn't see much to worry about in the short term. Many REITs seem to be oversold because of the fear of rising rates, which I don't think will materialise anytime soon - the world economy is still too fragile.

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