REITs: time to get out?

One of my best performing stocks is Impac Mortgage Holdings, IMH. This REIT recently upped its dividend to 2.20/share (.55/quarter) which is a yield of about 11% at its current 19.00 stock price. Its P/E is a reasonable 8.5. For more information: Yahoo Finance’s quote. Just remember that REITs dividends ARE taxable, even under the new plan. I got in at around 14.00, and I don’t know if now is the best time to buy. You’ll have to decide that.

I’m reducing my holdings because this stock makes up too high a percentage of my portfolio. In addition, if interest rates begin to rise quickly Impac shares may go down.

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