Really Rich REITs: 7 Massive Yields up to 15%

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Really Rich REITs: 7 Massive Yields up to 15%

Select real estate may be the income investing play for 2024. As I write, seven real estate investment trusts (REITs) are dishing dividends from 8.7% all the way up to 15.4%.

These REITs—and their ilk—are literally designed to deliver dividends. That’s how Congress wrote the rules when they legislated these real estate investments into existence back in 1960.

REITs avoid taxes at the corporate level. But in exchange, they need to pony up at least 90% of their taxable income and redistribute it to investors as dividends.

As a result, our average REIT yields somewhere around 2x to 3x the market.… Read more

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REITs Could Rebound. Will These Yields Up to 14.9% Join the Party?

Stick with me for some “next level” dividend thinking. We have a potential opportunity right now to buy five payers yielding up to 14.9% as the economy heads into recession.

Wait, what? Why would we want to buy stocks as the economy slows?

Well, we don’t want to own any names. We’ll pass on sky-high AI darling NVIDIA Corp (NVDA). Give us cheap REITs (real estate investment trusts) because they are likely to rise as rates fall.

Yes, that’s what happens in a recession. Investors flood into fixed income. Interest rates fall, and REITs—which tend to move opposite rates—rise.

These landlords are already getting up off the mat after a rough two years in which rates rose relentlessly.… Read more

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Wall Street Hates These 7 High Yields. Should You?

Most vanilla investors like to buy stocks that are well-liked by Wall Street analysts.

This strategy, my contrarian friend, we know is a recipe for disaster.

Why? Well, firms that are already popular with stock jocks have nowhere to go but down. Discarded names, on the other hand, are where the action is because these are the next “analyst upgrade” candidates.

These prices have little downside and lots of upside!

It is difficult to find these out-of-favor plays because most analysts wear rose-colored glasses. They know how their bread gets buttered, and that’s with a bullish outlook.

Which is why a Sell rating is so darned interesting to us.… Read more

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