Related: <blockquote> <b>The problem with REITs? They're pricey</b>
...REIT yields have fallen in the past five years, even though interest rates and dividends in the broader market have risen. In June 2002, the average REIT offered a dividend yield of 6.5%, vs. 4.8% for a 10-year Treasury note.
But soaring share prices have pushed REIT yields down. REITs now yield less than the 10-year T-note. Should long-term interest rates rise — which could happen if the economy strengthens further — REITs will face tough competition from bonds... </blockquote>
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All Comments by Long-Short Guy »Are REITs Really a Bargain? [View article]
<blockquote>
<b>The problem with REITs? They're pricey</b>
...REIT yields have fallen in the past five years, even though interest rates and dividends in the broader market have risen. In June 2002, the average REIT offered a dividend yield of 6.5%, vs. 4.8% for a 10-year Treasury note.
But soaring share prices have pushed REIT yields down. REITs now yield less than the 10-year T-note. Should long-term interest rates rise — which could happen if the economy strengthens further — REITs will face tough competition from bonds...
</blockquote>
Source:
www.usatoday.com/money...