Can’t afford RE? Buy FCD.UN REIT instead
Key Stats:
• Dividend Yield: ~8.5%
Technical Reasons for Upside:
1. Support at the 50MA: FCD.UN has been consistently defending its 50-day moving average, suggesting that buyers are stepping in at key levels.
2. Approaching Resistance Zone: The stock is eyeing a critical resistance —once breached, expect a strong push toward the target.
3. Volume Confirmation: Rising volume on up days indicates institutional accumulation and confirms the technical setup for a breakout.
Fundamental Reasons for Upside:
1. Robust FFO Growth: Improved funds from operations driven by stable rental income and operational efficiency underscore the REIT’s healthy fundamentals.
2. Attractive Dividend Yield: A yield of approximately 8.5% not only rewards income investors but also reflects strong cash flow management.
3. Positive Analyst Sentiment: Recent upgrades and a “Buy” rating from key analysts highlight growing confidence in the REIT’s strategic positioning.
Potential Paths to Profit:
1. Option 1 (Low-Risk): Buy shares at current levels and hold until the price reaches $6.5.
2. Option 2 (Moderate-Risk): Purchase LEAP call options (expiring in early 2027) at a strike near the current price, then sell as FCD.UN approaches the target.
3. Alternative Strategy: Consider a bull call spread by buying a call at a lower strike (e.g., ~$5.90) and selling a call at a higher strike (e.g., ~$6.5) with the same expiration to reduce your net cost while still capitalizing on the upside.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.