These 6%- to 13%-Paying Landlords Love Jerome Powell Right Now

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These 6%- to 13%-Paying Landlords Love Jerome Powell Right Now

The Fed has finally cut rates, and if the “dot plot” is any indication, it won’t be the last. This is fuel for real estate investment trusts (REITs)—they thrive when borrowing costs fall and their fat dividends shine next to shrinking bond yields.

Today we can lock in payouts between 6% and 13% from landlords set to surge as Powell’s long-awaited pivot plays out.

Why do REITs rally as rates fall? These stocks act as “bond proxies” that move alongside bonds and opposite rates. Here is a major REIT ETF plotted against the 10-year Treasury yield. As you can see, when the important rate zigs, the REIT benchmark zags:

REITs Zig When Rates Zag

Rate cuts don’t always hit the 10-year overnight.… Read more

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Insider Buying Is Bullish For These Dividends Up To 7.5%

If they’re buying, we’re buying.

Or we’re at least considering it.

If there’s anything better than a big dividend, it’s one that is being gobbled up by the company’s own insiders. We’re talking about the officers, directors, and other members of the C-suite that are closer to the action than any analyst, reporter or investor could ever hope to be.

Most insiders are sitting on their hands right now. And who could blame them given the bubbly backdrop? But three management teams in particular are saying:

Our stock is cheap. Our dividend—up to 7.5%, by the way—is safe. We’re in with our own cash.… Read more

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Earn Up to 10.4% in Dividends From These Recovering REITs

The stock market is coming off another sugar high, but REITs (real estate investment trusts) are still cheap. That’s great news to us income investors, who look past the piddly paying blue chips on the S&P 500. We prefer REITs because they pay, and we appreciate a deal when we see one:

REITs Remain Near Their Bear-Market Lows

REITs are on the mat because the Federal Reserve has relentlessly hiked rates. Good. Those of us who want to retire on dividends alone love how wide REITs’ yield spread over basic stocks has become.

Even a vanilla fund like Vanguard Real Estate ETF (VNQ) is a better income source than “America’s ticker”—VNQ yields 4.1% while SPDR S&P 500 ETF only pays 1.6%.… Read more

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