Can This 12.7%-Yielding REIT Portfolio Keep It Going?

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Can This 12.7%-Yielding REIT Portfolio Keep It Going?

Real estate is getting thumped, which means real estate investment trusts (REITs) are a bargain once again.

Finally! REIT yields are back to where they ought to be—(land)lording over the vanilla S&P 500:

We contrarians, of course, can do even better than the popular Vanguard Real Estate ETF (VNQ). While 3.5% isn’t bad, it pales in comparison to the 12.7% “headline yield” we’re about to discuss.

Why are REITs cheap again? Simple: The Fed.

As I mentioned months ago, higher interest rates mean not only higher costs of capital for REITs (and all other companies, for that matter), but also more competition for income as bond yields become increasingly competitive.… Read more

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Should We Own These 11 Dividends Over 7%? No, No, No

Sell ‘em if you got ‘em.

And c’mon, we all have ‘em.

Let’s think back a few months. Which stocks are we still holding now that we wish we had sold then?

I’m talking about the dividend dogs that, if we’re being honest, are not deserving of long-term positions in our retirement portfolios.

These mutts have had a fun summer—good for them (and us). Now let’s find them a nice home in another portfolio.

Why the deadline? September swoons are common. The Wall Street guys return from their Hampton homes and sell everything that rallied in August.

The summer rally (recently ended?)… Read more

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