22 REIT Dividends I Love, Hate for 2022

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If you’re as nervous about the 2022 edition of the stock market as I am, we should take this holiday week to review reliable REIT dividends.

REITs (real estate investment trusts) are stocks that dish 90% of their profits as payouts. This makes them ideal income plays for retirees. Rather than buying shares and “hoping” they’ll go up, we can lock in quarterly (or even monthly!) dividends—real cold cash!—with REITs.

For example, my favorite REIT for 2022 yields 4.9%. This equates to $4,900 per year on a $100K position, a great start to the year. Plus, we have the opportunity for price gains—for a total return of 10% or so.… Read more

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Let’s cut the Fed-babble and call things how they really are. Because what happened last week means a lot for our dividends—and whether we’ll be able to count on them in the future.

(In a moment, we’ll hit up three stocks that are perfect buys in today’s “Fed-driven” economy—they pay dividends up to four times bigger than those of the S&P 500.)

Last week we learned that:

  • The economy is roaring, with GDP up 6.4% in March from a year ago—that’s the kind of number you expect from a developing country like Vietnam, not the world’s biggest economy, yet …
  • The Fed’s money printer will STILL go “Brrrrrrr…” Jay Powell made no bones about it after last Wednesday’s Fed meeting: his massive bond purchases and zero-point-nothing interest rates are here to stay.

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Can we income seekers safely get back into REITs (real estate investment trusts) next year?

With the yield on the S&P 500 about to drop to a sad 1.5% (thanks, Tesla (TSLA) addition), renewed REIT-hope sure would be nice! The landlord industry index Vanguard Real Estate ETF (VNQ) pays 3.5%. That’s a dividend oasis in this zero-point-nothing world.

Once upon a time, VNQ performed in-line or better than the blue-chip index. It was a pretty good deal, as you could double your dividend and keep up with the Joneses’ portfolio with less heartburn.

Then, April 2020 came along, tenants stopped paying rents, and REITs-at-large got crushed:

A Good REIT Run While It Lasted

Does the fork-in-the-road above represent a paradigm shift or relative value?… Read more

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2020 has turned on a dime, and we dividend investors need to pounce now to set ourselves up for the big dividends and fast upside in 2021.

With a (mostly) settled presidential election and a vaccine for the virus, the strong buying opportunity we’ve waited on for 7 long months is finally here.

So what, exactly, should we be buying?

Let me show you the strategy I’ll be following in the coming months, along with three tickers—one of which has grown its payout an amazing 638% in just five years—poised to deliver big upside and dividends.

Divided Government Will Ignite Our Returns

No matter where you stand on the election—and I’d repeat that we always set aside our politics and approach things purely as investors here at Contrarian Outlook—we’ll likely have a divided government, with a Republican Senate and Democrats holding the House and presidency.… Read more

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We buy real estate investment trusts (REITs) for their yields first and foremost. Show us the money!

Dividend growth is good, too. A 4% yield looks twice as nice if we believe our income will double in just a few years.

After all, a 4% payer that boosts its dividend by 10% won’t yield 4.4% for very long. Investors will buy its price up and in doing so bid its payout per share back down. And that’s OK. This dividend-powered appreciation is actually the easiest way for us to double our money with safe REITs!

But dividend safety really is the key here.… 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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This market wipeout has one big silver lining for income investors like you and me: dividend yields are soaring—and today we’re going to tap four of my favorite stocks for payouts all the way up to 8.9%.

First, though, to see just how incredible this buying opportunity is, look no further than the Vanguard REIT ETF (VNQ), the benchmark ETF for real estate investment trusts (REITs).

If you logged into your investment account now and simply bought VNQ, you’d kick-start a nice 4.8% income stream. The ETF has only shelled out a payout that big on two other occasions—and only very briefly—in the last 10 years.… Read more

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What if you could lock in a 7.7% gain year in and year out, and get it all in cash, no matter what the S&P 500 does?

With the market’s paper gains for 2018 now mostly gone, no thanks to the correction, I’m guessing this would have a lot of appeal. So today, I’m going to show you 2 “pullback-proof” dividends paying 5.4% and 7.7%, with plenty of price upside ahead, too.

Thanks to the pullback, these two are perfect for buying now and sitting on forever (or at least a few decades). More on them in a moment.

How to Beat Fear and Get Rich From the Pullback

First, if the daily barrage of negative headlines has you pondering bailing out on stocks, stick with me for a second, because that’s the worst thing you could do now.… Read more

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You’ve no doubt seen tons of articles splashed across the Web (over)hyping the hottest investing trends to jump on now. But which promising technologies can we actually tap for payouts and dividends (preferably today)?

The “mainstream” list is endless: cryptocurrencies, marijuana stocks—even gene editing (where the white coats actually alter DNA to wipe out diseases like cystic fibrosis).

I hope you’re not taking the bait, because gambling on shaky themes like these can put a huge dent in your nest egg. Check out the stomach-churning ride pot stock Aurora Cannabis (ACBFF) has been on this year:

Aurora’s Bad Trip

That nasty fall even includes a 19% gain last week after Constellation Brands (STZ) invested $5 billion in Canopy Growth (CGC), the biggest marijuana stock by market cap.… Read more

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If you’re like most dividend investors, you’re probably keeping one eye on bond yields right now.

And, well, you should be … but only if you own low-yielding (or slow-growing) “bond proxies” like, say, PepsiCo (PEP).

But if you buy (or already own) the 5 “undercover” high yielders I’ll show you at the end of this article, I have great news for you: you can ignore inflation, bond yields and the Fed and simply keep on collecting your fat dividend checks.

Bond Yields: 1, PepsiCo: 0

Before we get to that, back to PepsiCo.

As you probably know, the yield on the 10-year Treasury note has risen from 2.3% in early December to more than 2.9% today.…
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