3 REITs Paying up to 5.2% with Big Growth Potential Ahead

Our Archive

Search completed

In this zero point nothing yield environment, investors will scratch any post possible, attempting to unearth yield in sometimes all the wrong places.

Within my world of coverage (REITs), it’s a struggle to find attractive yields in that 5% plus range, something that used to be a lot simpler in more normal interest rate environments.

Today, the Vanguard Real Estate ETF (VNQ) yields 2.6%, double that of the S&P 500 index. It’s not BAD, but it’s not what many of us need when planning out our retirement income.

I’ve seen an adventurous retiree or two dip their toes into those REITs yielding above 6%, grasping for yield, however ignoring all the risks associated with a dividend more than double the sector average.… Read more

Read More

Smart income investors know that the best REITs (real estate investment trusts) do just fine as rates rise. That’s been the case historically, and they’re rally again during this rate hike cycle too.

Why? Because elite landlords simply keep raising their rents.  These higher cash flows translate to higher dividends, and higher stock prices, regardless of what the Fed is up to.

For example, almost three years ago I recommended Medical Properties Trust (MPW) to my Contrarian Income Report subscribers. It was paying nearly 8% at the time – discarded to the bargain bin because the first-level types fretted that higher rates would harm its ability to collect rent checks from its hospital operators.… Read more

Read More

Categories