Equity Residential (NYSE:EQR)

Truly exceptional management.

There will be rent growth and occupancy should remain high for this apartment REIT, but the price has just gotten too high. It trades at a 4.15% FFO yield and has a current dividend yield of 2.22%. Despite being well capitalized, top apartments haven't seen big discounts in value. Investment opportunities at good yields will be limited. The stock will underperform the market.

With the housing market the way it is I see potential in the rental market into the future until the housing market stabilizes and people regain their faith in purchasing a home.

EQR's debt is over 4X of annual revenues. Their interest expense basically takes all of the operating income.

Until recently it was easier to qualify for a home loan than getting approved for a good apartment. I don't see much pricing power outside of very desirable areas, so the profit margins may not be that good even if some demand is present.

Can't see this one going well...

goodbye

There is less momentum, less volume, and less buying going on. We are in the last part of this rally.

The 1929-1930 equity rally (coming out of The Great Depression) lasted 147 days and the market was up 46%. It has been the same amount of time since the March, 2009 low and we are up about the same percentage. It’s déjà vu (paramnesia), so prepare for a drop of about the same percentage (85%).

Rinse and repeat!

Chairman is too distracted by Tribune Co. woes.

Dividend yield is dangerously high. Watch for a dividend cut as the debt/equity > 2 forces income to be committed to debt repayment. TTM P/E of over 200? Let's be reasonable.

Overleveraged REIT's are looking bad here.

Well run REIT pick.

This and AVP for the dividend, feel free to use SRS to short the sector if youd like to hedge

Easy money.

Chosen to be a part of the High Yield Portfolio strategy. Originally created by Fool UK's Stephen Bland (TMFPyad) in November 2000, the High-Yield Portfolio (HYP) strategy invests in a diversified group of 15 blue chip dividend-paying stocks with strong dividend cover, relatively low debt, and a history of increasing dividend payouts. The holding period is theoretically forever -- unless a stock is bought out or cuts its dividend.

Sound crazy? Well, the point of the portfolio is not necessarily for capital gains (although that's certainly a bonus), but to produce increasing amounts of annual dividend income. Daily price fluctuations matter not -- it's the income that matters -- so it removes emotional trading from the picture entirely. Doubters should note that the original UK HYP from November 2000 returned 68% through December 2007 (while the FTSE 100 lost 8%). What's more, the portfolio income payout increased 29% over that seven year period, from 3,451 pounds to 4,462 pounds per year.

Strong balance sheet with additional $550 million loan obtained recently from Wells Fargo at 6%. Reduced financing concerns for the long-term, unlike peers. Low 45% leverage (ratio of debt to total assets). Housing issues have more benign impact on this owner of apartments, where tenants are likely to stay put, if anything.

RE prices grow rapidly. All companies involved in the RE sector will benefit. Apartment REITs will benefit most.

Can anyone say P/E? Higher than my neighbor in college....sell it