i think the rising interest rate argument is an interesting one. I mean, lets assume against all logic by the time interest rates sneak up a touch ipl.un will still have the same distribution and be trading at the same price. and lets assume on that interest rise, ipl immediately slips to, what, $18? that will represent yield of 6.16%. how long do you think the price will remain that low to give you that yield on a quality name like ipl.un? could be a month. maybe 6. maybe even a year. point is, in my opinion, it will only be a temporary occurence and any significant dip on an interest rate rise will be a golden long-term opportunity to start or add to positions in order to collect a fat yield for years on end.
the same argument can be applied to the reits. everyone is expecting a decline in reits once the interest rates start to rise. well, have a look at reit shareprices before 2008, when rates were much higher, and tell me if the reit share prices were any lower then than they are now.
lastly, i also understand the valuation argument. however, tell me when the last time anyone paid their bills with a p/e ratio as opposed to their distributions.
not saying anyone shouldn't have any growth stocks in their portfolio but to assume div stocks are dead because interest rates may begin to rise a touch in late 2013, 2014, 2015 or whenever is a mistake I intend to hopefully capitalize on.
i could be wrong. i could be missing something. all opinions welcome.