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MEQ.TO is a strong stock. I like it but i am just scared because it seems like a reit where it pays very low dividend. this reminds me of AP-UN.TO when it was paying a low dividend and it turned into no growth pure dividend play, i don’t want meq.to to do the same, thoughts? maybe im just overthinking

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Asked on January 19, 2025 8:47 am
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MEQ is not structured as a REIT so it doesn't really need to pay out a specific portion of its income. With a REIT, they are given tax benefits because they are structured as trusts. As such, there is rules as to the amount of profits they have to pay out (typically in excess of 90%) in terms of distributions.

This company does a lot of things just like a REIT, but is just not structured as one. It focuses on maximizing total return and isn't limited to it being forced to pay out most of its profits back to shareholders.

As long as the company can continue to reinvest profits back into profitable real estate investments, I do not see it turning into a high income play anytime soon.

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Posted by Dan Kent
Answered on January 20, 2025 8:25 am
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