These Landlords Pay Up to 22%. Can We Trust Them?

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These Landlords Pay Up to 22%. Can We Trust Them?

I love the economics of real estate. But a landlord I’m not. Please, change your own lightbulb—don’t call me.

Enter real estate investment trusts (REITs), which provide us with landlord-style income from the comfort of computers and smartphones.

Why are these “virtual fourplex” deals available in convenient ticker form? Thank Congress (no, seriously!) By law, the bulk of a REIT’s income has to be returned to us, the shareholders, in the form of dividends. Even an average REIT is going to pay more than most other sectors, and some REIT dividends can get downright enormous—like the 7.8% to 22.3% yielders I’ll discuss here in a moment.… 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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This Safe 5-Stock Healthcare Portfolio Yields 5.5%

Healthcare—along with consumer staples (“buying stuff”) and utilities (“keeping the lights on”)—provide portfolio stability. Plus, they usually pay dividends, too!

Of the three safety sectors, healthcare is a steady growth market, too. Consider these stats from the Centers for Medicare & Medicaid Services:

  • National health spending is projected to grow at an average annual rate of 5.4% for 2019-28 and to reach $6.2 trillion by 2028.
  • National health expenditures are projected to grow 1.1 percentage points faster than gross domestic product per year during that same time period.
  • Between 2019 and 2028, healthcare’s share of the economy will rise from 17.7% to 19.7%.

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5 Big Yields That Will Ruin Your Retirement

Today, I’m going to warn you about five stocks with yields of 7% or more that should be avoided at all costs. They are my next “dividend disaster” candidates that are likely to either reduce their payouts, or lose 20% or more in price, or both.

Big current yields have nothing to do with safety. Consider these year-to-date performances from high-yielding companies that started 2017 with juicy yields, but at some point cut or suspended their dividends:

  • Windstream: Yielded 7.5%, lost 75%
  • Mattel: Yielded 5.5%, lost 45%
  • GNC: Yielded 7%, lost 26%

I warned you to sell Mattel late last year, before its dividend cut.…
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5 Popular REITs to Sell Now

Real estate investment trusts (REITs) have essentially one job to do for their investors – pay reliable dividends. Many do, but when firms find their payouts in jeopardy things get ugly in a hurry. Which is why you need to avoid, or sell, the five ticking time bombs we’re going to discuss today.

Dividend cuts don’t just “happen.” When a REIT slashes or suspends its dividend, it’s rarely a surprise – and rarely an isolated incident.

Let’s consider Armour Residential REIT (ARR) – here’s five years of dividend cuts and misery:

Sure, the current yield for Armour always looks good at 10% or higher. Problem is, its payout can’t be trusted. And neither can these five unsustainable dividends. …
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