«If rates rise, we would view that as a valuation headwind, and I think it would be a really tough year for REITs in terms of
total shareholder returns if that's the case,» Lukasik observed.
Not exact matches
But
if Moynihan hits his mark and
returns all of B of A's profits to
shareholders, with earnings now in the $ 20 billion range, the yield would rise to 8.5 %, and the
total return to more like 12.5 %.
If it just keeps paying out all of its earnings,
shareholders will get a
return equal to the earnings yield (inverse of the PE) of 6 % plus inflation, or a decent
total of around 8 %.
If a company has proven that it can average a high
return on
total capital within the majority of its business operations (averaging, say, 15 % + per year for many years) then the company can reinvest what would be dividends, and thus save the
shareholder tax.
If we include dividends,
shareholders have seen around 14 %
total annual
returns over the past four + decades.
Simply put,
if you're not looking for the two extra ways companies reward
shareholders in addition to just dividends, you're taking on extra risk and you're not going to maximize your
total returns.
If analysts are correct with their forecasts and Omega Healthcare trades at its normal P / FFO of 13.2,
shareholders could receive a
total annual rate of
return in excess of 13 %.
If a company has proven that it can average a high
return on
total capital within the majority of its business operations (averaging, say, 15 % + per year for many years) then the company can reinvest what would be dividends, and thus save the
shareholder tax.