Dividend Time

Reits and Trusts have been a major part of my investment portfolio since the financial crackdown down last year. I deeply believe relatively stable yield and grow are still my cup of tea for a mid / long term strategy. October is the month companies releasing their 3Q results, noticed most of the Trusts are reducing their distribution per unit (DPU) despite the improvement in net profit. Cambridge proposed a reinvestment scheme to opt for receiving shares instead of cash as distribution; Pacific Shipping Trust reduced its distributable income to 70% instead of 90%. These steps are necessary to assure the constant growth and improve the balance sheet (gearing) for a trusts, 100% income pay out are not substainable in a long term. Investors should get out from the mentality of high pay out sweet time. The long term growth still the key point to maintain substainable distribution.