your numbers are very very close to mine. 10-15% annual return (a mix of dividends and capital growth), I only need capital growth of 7% if my dividends are over 8%.
Include a bit of debt, and those returns become a bit more turbo charged to 20%.
20% returns: not a YOLO number, but still very satisfactory.
If I am wrong, well I just collect my 8%+ dividends and wait.
I am PAID to wait, when it comes to good yields, time is my friend. Thanks Chris60, a very intelligent comment. Yes interest rates could well remain higher for longer, in which case cheaper historical debt gets refinance at by definition more expensive debt (a bit like a home owner who was squatting on historical pre-covid minimal fixed debt, until the fixed loan ended, and suddely has to refinance into current market interest rates.
A good comment, and as highlighted a relevant risk.
My comment to this: As the CAP rates rise, the net net of this over time will rise. Whilst there will be movements between financial years, over time this will wash through because of the rise in CAP rates. But it will be 'lumpy'
HCW Price at posting:
$1.06 Sentiment: Buy Disclosure: Held
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