22 REIT Dividends I Love, Hate for 2022

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22 REIT Dividends I Love, Hate for 2022

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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21 REIT Dividends I Love (and Hate!) for 2021

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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Our Rebound Shopping List: Dividends Over Stocks

I hope you are taking care of yourself, and your family. This is a good time to hunker down, both in life and in our investing strategy. Brighter days are ahead—let’s make sure we get there with ourselves and our portfolios relatively intact.

On the other side of this pandemic and shutdown, we may eventually be presented with a “March 2009” type of buying opportunity. Big yields for dimes on the dollar. When the time is right, we’ll load up our income portfolios with these bargains and resume our usual light banter in this weekly missive.

Unfortunately, I don’t think we’re on the other side of this just yet.… Read more

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Our Rebound Shopping List: Dividends Over Stocks

I hope you are taking care of yourself, and your family. This is a good time to hunker down, both in life and in our investing strategy. Brighter days are ahead—let’s make sure we get there with ourselves and our portfolios relatively intact.

On the other side of this pandemic and shutdown, we may eventually be presented with a “March 2009” type of buying opportunity. Big yields for dimes on the dollar. When the time is right, we’ll load up our income portfolios with these bargains and resume our usual light banter in this weekly missive.

Unfortunately, I don’t think we’re on the other side of this just yet.… Read more

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How to Rebalance a “No Withdrawal” Portfolio

1929, 2008 and, now, 2020.

We’ve only seen this level of “selling pressure” three times since 1900. A limited sample size, sure, but we’re in ominous company. Anything and everything has been dumped in a panic liquidation to raise cash.

We saw a similar “global margin call” in late 2008. A year’s worth of selling crescendoed into a financial crisis grand finale that would eventually conclude in March 2009.

The good news then? If you held tight or, better yet, bought through the panic, you eventually did quite well. Let’s take the worst day of that year. On October 15, 2008, the S&P 500 slid 9% in one day.… Read more

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Inside My “Crash-Resistant” Strategy for 7% Dividends and Upside

During volatile times like these, the best thing to do is this: stay calm and keep collecting your dividends.

Fighting the urge to sell is critical, because doing so could slash your dividend income by 82% or more.

Here’s where I’m getting that number: let’s say you hold the stocks in our Contrarian Income Report portfolio, which yields an average of 7.2% as I write this. (If you bought a while back, you’re likely yielding more on your investment, thanks to our picks’ dividend growth, but let’s use 7.2% as our benchmark here.)

And let’s say you’ve got a reasonable nest egg—about $350K—invested.… Read more

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Late Cycle Investing: Dividend Stocks for 2020 and Beyond

Until a flu-like virus emerged halfway around the world, it’s been three peaceful months since we’d seen a “1% up or down day” in stocks. As usual, the volatility inspired investors to reflect upon the advanced age (almost eleven years) of our current bull market.

To paraphrase the legendary rock band Chicago, does anybody really know what time it is in the rally right now? “Late cycle” is a popular guess. But how late?

Did the streetlights just pop on, or is it 2am with money managers stumbling into their taxis and Ubers outside?

Most rallies don’t make it to eleven, but then again, most don’t follow financial crises either.… Read more

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How to “Inoculate” Your Portfolio From Coronavirus (and Get 6%+ Dividends)

I’m sure you’ve noticed stocks whipsawing in the past week on fears of the spreading coronavirus. We’ll talk income investment strategy shortly, with a specific focus on safe dividends and profits, regardless of where the markets go from here.

First, I should say that I’m not going to go into the health or political implications of this outbreak, which has infected thousands as I write this, with 99% of those in China.

As investors, we need to look at the situation through a clear, logical financial lens. And the good news is that right now we have a great opportunity to safeguard (and even grow) our nest egg—and our dividend income, too.… Read more

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5 Steps for 15% Per Year (Whether Bull or Bear)

Will this bull market actually die of old age this year?

The macro picture is dicey and stock valuations are pricey, but we must stay invested. The stock market goes up about two-thirds of the time. Permabears miss out on compounding and it’s not as easy to be a part-time bear as it sounds.

To illustrate this let’s consider a study by Hulbert Financial. The firm looked at the best “peak market timers”–the gurus who correctly forecasted the bursting of the Internet bubble in March 2000 and the Great Recession in October 2007.

These were the clairvoyant advisors who had their clients out of stocks and mostly in cash when the S&P 500 was about to be chopped in half.… Read more

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Perfect Dividends for the Roaring (or Recessionary?) 2020s

Are we kicking off another episode of the “Roaring 20s” today?

Who knows. Nobody really predicted the 2010s would be an end-to-end bull market. Yet the most hated rally of all-time resulted in stocks nearly quadrupling:

The Epic Rally Few Investors Believed In

A million bucks that sat in a boring S&P 500 fund a decade ago would have grown to $3.5 million. Unfortunately, many experienced investors did not participate in this full rally, still being shell-shocked after 2008.

(Which illustrates why it is important to always be fully invested. Investors who slept through the ’08 carnage quickly made their money back in the years to follow.… Read more

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