Reits got spanked

[erockin]

Why did VGSLX get spanked today?

[DMFA]

REITs have been rubbish lately - the Big Box is dying, and a lot of it is in shopping mall companies like Simon - but it might be the time of year that it pays its big annual distro and takes it out of the NAV, but you get more shares in the distro so it evens out on your balance sheet.  Plus, with so much of REIT distro being unqual'd dividends, it's liable to take a bigger hit than, say, VTSAX whose distro is almost all LTCG and QD.

[FIREshrink]

It went ex-div today. No need to panic.

https://institutional.vanguard.com/VGApp/iip/site/institutional/researchcommentary/article/NewsYearEndDistribution122017

[Peds]

Google what a distribution is.

 

Edit: beaten to the punch. ❤️ this time of year for these posts. ??!

[jfoxcpacfp]

Let’s see, now what is that quote by Baron Rothschild? I’m just blank, can anybody help?  

Something surgical? Blood, perhaps?

I think the baron might have been a long-term investor...

[erockin]

FIREshrink, Thank you for the explanation.

Peds and jfoxcpacfp, Thanks for the warm welcome. Sharing knowledge with those who are learning is something these forums were created for. Questions should be welcome. Not made into a laughing point. Grow up or go back to high school we’re people laugh at that type of behavior.

[DMFA]

...did I miss something?

[Hatton]

DMFA wrote:

…did I miss something?

Click to expand...

I feel like I missed something also.  I did not detect any sarcasm or snark.

[TheGipper]

I’m rebalancing into REITs without reservation.

Also REIT dividends will now get the tax bill 20% deduction, which will help whoever keeps them in taxable, which has to be significant bump eventually.

[erockin]

I miss took those posts for sarcasm mocking my ignorance. No harm no foul. I apologize.

"The time to buy is when there's blood in the streets."

I did not find the written definition of “distribution” on Google to be helpful

[VagabondMD]

There's a lot of spanking going on in this thread!

[ENT Doc]

I think some of the posts got switched up - I'm seeing DMFA's post showing up as the first. Anyhow:

https://www.bogleheads.org/forum/viewtopic.php?f=10&t=129142

[Hatton]

Distribution..it paid out a dividend. Dividend plus new value of shares= old price.  Mutual funds do it this time of year also

[WallStreetPhysician]

hatton1 wrote:

Distribution..it paid out a dividend. Dividend plus new value of shares= old price.  Mutual funds do it this time of year also

Click to expand...

I think this helps clarify why many investors should be skeptical of dividend investing simply for the dividends. The actual payment of the dividend does not add any value to the stock, as we see today in the case of this REIT.

-WSP

[ENT Doc]

https://www.bogleheads.org/forum/viewtopic.php?f=10&t=235065&newpost=3672451&view=unread#unread