The Secret to 27% Yearly Gains with REITs

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We were inching forward on a busy road in suburban Boston. I looked out our window and asked my friend how much of the retail strip to our right he’d short (if he could).

Joey works for a real estate hedge fund in New York, by the way.

“All of it,” he replied without hesitation.

He paused.

“Sell it all.”

I nodded in agreement. Death by Amazon before our very eyes!

Now you and I don’t normally chat about brick and mortar stores because, quite frankly, who cares about retail stocks. They don’t pay big dividends unless they’re in big trouble, like Macy’s (M) (and its 7.6% mirage yield) right now.…
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This is an example of a bad almost-10% yield:

When a Bullish Chart is Bad

Mattel’s (MAT) yield was rising for the wrong reason – because its stock price was dropping faster than its payout. Going forward, that shouldn’t be a problem. The firm officially suspended its dividend on Friday.

I warned you that the toy maker was a dividend disaster waiting to happen. In June’s edition of our Dirty Dozen: 12 Dividend Stocks to Sell Now report, we discussed how falling profits were going to be a serious problem for the stock’s payout:

When Mattel last raised its dividend, from 36 cents to 38 cents quarterly at the beginning of 2014, few people batted an eye.


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Most investors with $500,000 in their portfolios think they don’t have enough money to retire on.

They do – they just need to do two things with their “buy and hope” portfolios to turn them into $3,279 monthly income streams (or much more):

  1. Sell everything – including the 2%, 3% and even 4% payers that simply don’t yield enough to matter. And,
  2. Buy my 8 favorite monthly dividend payers.

The result? $3,279.69 in monthly income every month (from an average 7.6% annual yield, paid every 30 days). With upside on your initial $500,000 to boot!

And this strategy isn’t capped at $500,000.…
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Is retail dead? It depends.

While Amazon.com (AMZN) is indeed making life miserable for many brick-and-mortar outfits, I’d like to show you five dividend stocks in the space that could be a month or two away from getting a big shot in the arm.

So say the holiday crystal balls.

Salesforce.com, which provides annual holiday industry insights, recently issued its 2017 forecast, saying this year’s Black Friday will be the “busiest digital shopping day in U.S. history” – outdoing even Cyber Monday. It’s a tech dream report that includes stats such as 40% of orders coming from mobile phones, and millennials using Amazon’s Alexa and Apple’s (AAPL) Siri in droves.…
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Let’s face it: brands are dead—and that’s terrible news for the 4 household names (and their landlords) we need to talk about today.

Research from Scott Galloway, founder of digital-research firm L2, tells the tale.

Galloway looked at the 13 S&P 500 stocks that have beaten the market for five straight years and found something shocking: just one, Under Armour (UA), is a consumer brand.

And as Galloway points out, there’s no way UA will keep that run going.

UA: The Last Brand Standing—for Now

The other 12 names on the list are mostly innovators that have sliced into old-school businesses and flipped them on their heads—think Facebook (FB), Salesforce.com (CRM) and, of course, Amazon.com (AMZN).
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Let’s talk about five big payouts that are so flimsy, they’re just asking for the ultimate sign of dividend disrespect:

Paying money to short them.

It’s one thing to turn down a decent yield in today’s 2% world. It’s another to be willing to pay the dividend in order to bet against the stock!

Yet here are five firms with archaic business models (some are so-2015) that their cash flow streams will soon dry up. And when the cash evaporates, so will the dividend.

Which is why I may short some or all of these shares in the weeks ahead after this piece publishes.…
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Don’t take any dividends for granted today. Business disruption is accelerating as entire industries are being eaten alive.

Uber and Lyft? Killed cabs.

Amazon (AMZN)? It’s crushing retail, and starving their REIT landlords right before our very eyes.

And soon, they might team up to offer more same day deliveries – and make more rivals obsolete!

These types of disturbances have added a new layer to contrarian investing. Before, it was as simple as buying stocks when they were out-of-favor and holding them until they became back in vogue. The “Dogs of the Dow” strategy, for example, usually beat the market by banking the highest blue chip dividend yields – a sign that the tide was ready to turn back in the dogs favor.…
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Today we’re going to dive into 3 blue chip names your friends are probably dodging like a co-worker with a bad cold right now.

That’s too bad, because they’re making a big mistake.

Because even though they’ve gapped way higher in 2017, these 3 stout picks are just getting started. So if they’ve been taking up space on your watch list (and you’re far from alone if they have), now’s the time to make your move!

And that goes double if you’re investing for the long haul. Say 10 years or more.

I’ll share their names in a second. First, let’s dive into precisely why these 3 American icons are fueling up for their next jump higher.…
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Real estate investment trusts (REITs) are now a core source of income for investors and retirees. REITs represent more than $1.1 trillion worth of equity market capitalization. Their popularity has soared – the amount spent trading REITs is nearly double what it was just 10 years ago.

The downside of fame? There aren’t nearly as many hidden gems in the sector as there used to be. At this point, companies like Simon Property Group (SPG), Realty Income (O) and even Public Storage (PSA) are widely known and covered – and their valuations show it.

But I have my eye on four lesser-discussed REITs that still have a little something special to add to the REIT space.…
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Everyone’s obsessing over FAAMG stocks, and for good reason. Facebook (FB), Apple (AAPL), Amazon (AMZN), Microsoft (MSFT) and Google, now known as Alphabet (GOOG), are on a tear for 2017, rising nearly 30%, on average.

And today I’m going to show you two funds that invest in these companies while offering higher dividends than any of these stocks pay individually.

Of course, everyone has heard of Facebook, Apple and Google. (And in case you missed it, my colleague Brett Owens revealed five individual tech stocks he likes now on June 19.)

But hardly anyone has heard of either of these high-yielding tech funds.…
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About Author

Brett

Hi, I’m Brett Owens – and I’m a financial junkie. My “problem” started incollege, when I got a little dose of the stock market – man, was I hooked…in no time, I was reading the Wall Street Journal religously.

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