These 7%+ REITs Are the Perfect Hedge

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These 7%+ REITs Are the Perfect Hedge

Sir John Templeton and his 16 rules for investment success are required reading for any serious investor. And amid the volatility lately, I’ve been thinking a lot on one of these rules in particular:

“The investor who says, ‘This time is different,’ when in fact it’s virtually a repeat of an earlier situation, has uttered among the four most costly words in the annals of investing.”

Yes, it feels like the Russian invasion of Ukraine has opened a new chapter in geopolitics. And yes, it feels like we are on the cusp of something big with inflationary pressures, the threat of higher interest rates and other disruptions.… Read more

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These “Paper Mills” Print an Average Yield of 8.9%

“Regular” REITs typically buy physical properties, find someone to manage them, and lease them out. They collect rent checks and avoid paying taxes on most of these profits if they pay most of their earnings out as dividends (per the terms of their tax loophole, which frees them from paying taxes if they distribute 90% of their profits as payouts). This is the reason REIT stocks typically boast big yields.

Mortgage REITs (mREITs), on the other hand, don’t own buildings. They own paper. Specifically, they buy mortgage loans and collect the interest. How do they make money? By borrowing short (assuming short-term rates are lower) and lending long (if long-term rates are, as they tend to be, higher).… Read more

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3 REITs Yielding Over 7% You Can Take To The Bank

Did you know that over 36% of US publicly traded REITS either cut or slashed their dividends during the pandemic?

This combination of dividend cuts and demand from yield-hungry investors has led to bottom-of-the-barrel yields across the industry.

The Vanguard Real Estate ETF (VNQ), which is a solid proxy for the REIT market, now pays only a 2.2% dividend yield, well below historic averages.

It shows the importance of finding high-quality, well-managed REITs that can sustain their dividend payments, even in the throes of a financial disaster.

I’m here to tell you that despite the dividend cuts, there are still plenty of attractive high-yielding REITs out there. … Read more

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How to Beat the Market with Dividends Up to 11.7%

“I’m getting close to retirement,” my friend explained after a fun round of golf. (In 2020, any round of golf is a fun round). “And…” he continued.

“You’re looking to turn your nest egg into regular cash flow,” I jumped in.

Bingo.

Most retirees and soon-to-be retirees (wisely) focus on cash flow from dividends. Like my buddy, they don’t care about beating the market.

But, with some smart high-yield buys, it is actually possible to beat the market with cash payments alone. This may sound absurd in a world where, at least once a year, investors like you and me are treated to a slew of media reports pronouncing that for yet another year, fund managers couldn’t beat their benchmarks.… Read more

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Undercover Yields Up to 8.3% That the Computers Overlooked

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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This 14.2% Yield is Too Good to Be True (But This 9.5% Payout Isn’t!)

Most dividend investors understandably love the idea of an 8% No Withdrawal Portfolio. It’s a simple yet “game changing” idea that you don’t hear much from mainstream pundits and advisors.

Find stocks that pay safe 7%, 8% or more and you can retire comfortably, living off dividend checks while your initial capital stays intact (or even appreciates).

Now this strategy is a bit more complicated than simply finding 8% yields and buying them. Granted the recent stock market pullback has benefited investors like us because we can snag more dividends for our dollar. Yields are higher overall, and that’s a good thing.… Read more

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The 3 Best Big Dividends (Up to 9.5%) for This Uncertain Market

Dividends or growth? Why choose?

There’s a widespread belief that stocks and funds can deliver red-hot capital gains or substantial income, but not both. Fortunately for us that’s not true.

It is possible to collect big dividends and capital appreciation. I’m going to show you how to safely collect 32% in total returns in less than a year from a big dividend payer. And while this “easy dividend money” has been made, we’ll discuss three more stocks yielding around 8%-9% that can deliver 20%+ in dividends and upside over the next twelve months..

Income investors like you and me should focus on total returns, which are made up of dividends and price appreciation.… Read more

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2 Stocks Yielding 8%+ to Beat Rising Interest Rates

Earlier this week, the Fed raised short-term interest rates for the third time this year, to a range of 2% to 2.25%. History suggests that higher rates can hurt dividend stocks in two ways:

First, companies that regularly borrow a lot of money (like REITs and utilities) now have to pay more to do so. Second, money market accounts, CD’s and short-term bonds are actually paying meaningful returns for the first time in a decade, offering a competitive alternative to dividends.

However, higher interest rates don’t have to sound the death knell for all dividends. By looking for the companies whose earnings expectations have actually been rising of late, you can sometimes find a healthy yield today and a business that is either resilient to, or even benefits from higher rates.… Read more

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