Recent Sell – RioCan REIT

I decided to close my position in RioCan REIT (REI.UN.TO). RioCan is one of the largest real estate investment trusts in Canada and specializes in the retail space. The company owns interest in 340 retail properties in Canada and US, including 15 properties under development.

It has been one of my longest holding – a position that I initiated in April 2009 (right at the bottom of the market during the financial crisis). It was yielding 10% and back then – in my chase for yield, decided to initiate a position. In a matter of months, the stock price doubled and has stagnated since. However, I was able to reap the 10% yield-on-cost month after month. Its a company which has good financials, but shareholders currently get a 5% yield. While that is ample dividend to expect from a stock, the company has failed to raise dividends during good times and my patience has run out.

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