What are your opinions on the dividend stock Soho?

Asked 4 years ago

I know they recently postponed their dividends. How has your experience with this company been? FYI: I had it before it suspended its dividends. It’s a REIT, so it will have to resume its dividend as soon as this covid story is all over. However, I would like a second option on whether I should be keeping it or get rid of it since it is a hotel REIT. I am no genius, but I don't think hotel REITs have a big cash flow right now.

Sotherly hotels inc (soho)Dividend investing Opinions on specific stocks Real estate investment trust (reit)

Andrew Moran

Thursday, July 01, 2021

You are corrected that hotel REITs do not possess a significant cash flow right now. It could be sometime before the industry recovers in the post-pandemic economy. 
That said, its latest earnings report was good enough. Despite reporting a first-quarter loss, SOHO topped its revenue estimates. Also, Wall Street is either a "Buy" or a "Hold" right now.
Unless you bought at the 52-week low, there is not much sense in holding this stock. You would be better off investing in Ashford Hospitality Trust Inc. and Apple Hospitality REIT Inc.
That said, it is best to pick a hotel investment right now as global tourism and travel will begin to recover.