Risky REITs? These 3 Blue Chips are Actually Overpriced

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The Contrary Investing Report > NYSE:CLDT

Real estate investment trusts (REITs) are great potential fits for any modern retirement portfolio. With interest rates ticking down from 2% to 1% and, perhaps, eventually 0%, these generous dividend payers are benefitting big time.

REIT stocks tend to yield twice as much as regular ol’ stocks. They collect rent and pay it directly to their investors as dividends. This “capital light” approach gives them cash cow status. It’s a big reason why REITs outperform the broader market over any length of time.

So should we just buy the biggest, most successful REITs and enjoy their dividends and the growth of their payouts.… Read more

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If you’re hunting for income, your job just got a lot tougher, and it’s all the Federal Reserve’s fault! Fed Chair Jerome Powell’s recent cave-in on rate hikes means the central bank is out of action for the rest of 2019—and its next move could even be a cut.

Sure, this has been great for stock prices, which surged 8% since the new year. But it’s crushed dividend yields, leaving you with far fewer buys to get the 6%+ yields you need to retire on dividends alone.

Look at how this past month’s price gain has compressed the average S&P 500 stock’s yield from a pathetic 2.1% to a very pathetic 1.9%!… Read more

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