5 REITs Paying up to 13%: 3 Duds, 2 Studs

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Interest rates are trending lower, which means real estate investment trusts (REITs) are rallying. These “bond proxies” tend to move alongside bonds and opposite rates.

If you believe the economy is likely to continue slowing, then select REITs are intriguing income plays here. Especially those yielding between 7.2% and 13.2%, which we’ll discuss shortly.

As I’ve been saying for a few weeks, the real story is in longer rates, namely the 10-year Treasury. I spelled this out in a recent article.

To recap, Treasury Secretary Scott Bessent has been upfront that he and President Trump are focused on the 10-year Treasury rate (the “long” end of the yield curve), and not the Fed benchmark (the “short” end).… Read more

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Real estate is great, except for the heavy time commitment, which makes it a non-starter for me. “Brett, can you come over and change my lightbulb?”

No thanks. Tickers only, please.

Which is fine. Enter real estate investment trusts (REITs), which let us invest in not one or two buildings, but usually dozens or even hundreds, for as little as $20 per share or so. Plus the yields can be even better than the fourplex that would ruin my life down the street.

Dividends of 7%, 12% and even 16%. All with a simple ticker that we can tap in from our phones.Read more

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Real estate investment trusts (REITs) are dirt-cheap—but hurry if you like dividends. These generous payers may not be in the bargain bin for much longer.

REITs tend to trade opposite long-term interest rates. The ever-rising 10-year Treasury yield has been a big headwind for these stocks.

But all rising rate periods eventually end in recession. Which brings falling rates. Which hurts stock prices—unless you like REITs.

REITs trade more like bonds than stocks, so they tend to hold up well in recessions. Their dividends, ignored during AI bubbles, come back in vogue as easy money dries up.

So here we go—bargain city!… Read more

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It’s essential for core dividend holdings to consistently raise their payouts over time. Without a steady uptick in the regular dole, inflation starts gnawing into investors’ returns. That dollar becomes 98 cents, becomes 96 cents, and – you get the picture.

And it’s especially important to keep tabs on the dividend growth of your real estate investment trusts (REITs). I want to buy REITs that are constantly raising their rent. Larger and larger rent checks create growing dividend checks for us!

Over the long run, REIT share prices move higher as their dividends move higher. These payouts also provide downside for lean years like last year, when the dividend was about all we got:

2017 wasn’t a fun year for REIT investors, with the Vanguard REIT ETF (VNQ) coming in essentially flat for the year without including dividends.…
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