Top 10 REITs Exhibit 27.88% Edge For 5 Highest-Yield, Lowest-Priced As Of June 12

by: Fredrik Arnold

Ten category-leading Real Estate Investment Trust (REIT) stocks by yield projected 27.88% more net gain from $5k invested in the lowest-priced five than from $5K in all ten.

Annual returns (dividends) divided by closing stock prices June 12 determined yields. Analyst targets were employed to calculate gains one year out.

The five lowest-priced high yield category leading REIT stocks were: WHLR; ARR; CORR; CSG; WST.

Five higher-priced stocks of the ten REITs were: WMC; SNH; GOV; STAG; HPT.

Consider these stocks as reference points for diversified June REIT investment investigation.

Top Ten For the Money

This article refines and distinguishes an earlier report that revealed bargain REIT stocks to buy and hold for one year.

See Dow 30 article for an explanation of the term "dogs" for stocks reported based on Michael B. O'Higgins' book "Beating The Dow" (HarperCollins, 1991), now named Dogs of the Dow. O'Higgins' system works to find bargains in any collection of dividend paying stocks. Utilizing analyst price upside estimates expanded the stock universe to include popular growth equities, as desired.

Dog Metrics Extracted Bargains

Ten leading REIT equities were culled by yield from here. Yield (dividend/price) methodology was applied to select the top three high-yield stocks from each of ten categories: [1] mortgage finance, [2] residential, [3] retail, [4] mixed industrial & office, [5] specialty, [6] office, [7] diversified, [8] health, [9] lodging, [10] industrial. Top dividend paying stocks from each of ten categories constituted the ten REITS. Listed as of market closing prices June 1, they ranked themselves by yield as follows:

Top REIT stock by yield, Western Asset Mortgage Capital (NYSE:WMC) [1] was the top mortgage and finance representative. Second place firm, Armour Residential REIT (NYSE:ARR) [2] represented residential REITs. Third by yield, Wheeler REIT (NASDAQ:WHLR) [3] led retail REITs.

In fourth place was the office REIT representative, Government Properties (NYSE:GOV-OLD)[4]. Fifth by yield, Senior Housing Properties (NASDAQ:SNH) [5] was the leading Healthcare REIT. Sixth place went to Whitestone REIT (NYSE:WSR) [6], which led the diversified REIT category.

In the seventh slot was CorEnergy (NYSE:CORR), which represented Specialty REITs. In eighth place was Hospitality Properties Trust (NASDAQ:HPT) [8] the top lodging REIT. Ninth place went to STAG Industrial (NYSE:STAG) [9] the leading industrial REIT. In tenth was Chambers Street Properties (NYSE:CSG) [10], best of the mixed industrial and office category, which completed the top ten June 12 REIT dog list by yield.

Actionable Conclusions: (1) Analysts Assert 5 Lowest-Priced of Top Ten Highest-Yield Category Leading REIT Dogs Deliver 29.98% vs. (2) 23.44% Net Gains from All Ten As Of June 12, 2016

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten category leader REIT kennel by yield were predicted by analyst 1-year targets to deliver 27.88% more net gain than $5,000 invested as $.5k in each of all ten. The second lowest-priced REIT dog, Armour Residential REIT, was projected to deliver the best net gain of 39.84%.

The lowest-priced five category-leading REIT dogs as of June 12 were: Wheeler REIT; Armour Residential REIT; CorEnergy; Chambers Street Properties; Whitestone REIT, with prices ranging from $2.30 to $13.93.

The higher-priced five REIT dogs for June 12 were: Western Asset Mortgage Capital; Senior Housing Properties; Government Properties; STAG Industrial; Hospitality Properties Trust, whose prices ranged from $15.43 to $29.35.

This distinction between five low-priced dividend dogs and the general field of ten reflects the "basic method" Michael B. O'Higgins employed for beating the Dow. The added scale of projected gains based on analyst targets contributed a unique element of "market sentiment" gauging upside potential. It provided a here and now equivalent of waiting a year to find out what might happen in the market. It's also the work analysts got paid big bucks to do. Caution is advised, however, as analysts are historically 20% to 80% accurate on the direction of change and about 0% to 20% accurate on the degree of the change.

The stocks listed above were suggested only as reference points for a REIT dog stock investment research process in mid-June 2015. These were not recommendations.

Gains/declines as reported do not factor in any tax problems resulting from dividend, profit, or return of capital distributions. Consult your tax advisor regarding the source and consequences of "dividends" from any investment.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.

Graphs and charts were compiled by Rydlun & Co., LLC from data derived from;; analyst mean target price by Thomson/First Call in Yahoo Finance.

Disclosure: The author is long ARR. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.