Why VEREIT Stock Dropped More Than 10% in September
VEREIT (NYSE: VER) stock, which was up 43% year to date as of Sept. 1. tumbled in September, losing 10% of its value, according to data from S&P Global Market Intelligence. There was no specific news related to VEREIT during the month, but many REITs took a hit as the Federal Reserve considered raising interest rates.
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VEREIT is a REIT, or real estate investment trust. REITs are structured in a way that compels them to issue 90% of their income as dividends, and they are often coveted dividend stocks. The company is merging with leading REIT Realty Income (NYSE: O) to create on of the biggest REITs in the world.
Source Fool.com
