If you believe that single-family homes are likely to appreciate in value over the next several years, American Homes 4 Rent (AMH), organized as a REIT, is a company worth keeping an eye on. AMH is less than one year old, having concluded its initial public offering last August, but its common stock has risen over 10 percent since then. AMH offers investors three preferred stocks - AMH-A, AMH-B and AMH-C - all with cumulative dividends and introduced shortly after the company's August initial public offering.
For each of AMH's preferreds there is a special provision that adds a Home Price Appreciation Factor ("HPA" Factor) to the $25 par value ("initial liquidation preference" amount), hence increasing your dividend income if home values rise..
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For each of AMH's preferreds there is a special provision that adds a Home Price Appreciation Factor ("HPA" Factor) to the $25 par value ("initial liquidation preference" amount), hence increasing your dividend income if home values rise..
Note To Readers: This article was chosen to appear on the popular investing website 'Seeking Alpha'.
By clicking here a new window/tab will open on your screen to this article as it appears at SeekingAlpha.com.
Receive my Seeking Alpha articles by email: When viewing one of my articles at Seeking Alpha, click on the "Follow" button under my picture. You will be notified by email when I post a new article to Seeking Alpha.
Please enjoy reading this article at Seeking Alpha.
Many Happy Returns.
