Amazon.com (AMZN) is eating everything retail alive – including most retail REITs. As a result, the entire sector is selling at fire prices – leaving us with a select handful of underappreciated bargains.
Why the panic? Amazon has completely transformed retail over the past decade or so, starting with books, but expanding into just about every corner of the traditional retail market – clothes, electronics, home goods and even staples like toilet paper and laundry detergent. The company gobbled up $98 billion in “electronics and other general merchandise” sales across all of 2016 – an expansion of nearly 30% that shows Amazon’s growth in e-tailing is still rampant.
So, as you sell your retail-related dividends, don’t forget to ditch their landlords. As more storefronts shut down, REITs that lease retail space are getting clobbered. …