It Pays Dividends To Own REITs

Mar. 28, 2019 7:00 AM ET, , , 55 Comments

Summary

  • Historically speaking, REITs have offered higher dividend yields than other equities with similar risk profiles thanks to their cash-flow-oriented business models.
  • Not to mention the inflationary nature of the property and leases they operate under.
  • Those positive price movements must, by law, lead to higher dividend payouts doled out to in-the-know investors like you and me.
  • This idea was discussed in more depth with members of my private investing community, Rhino Real Estate Advisors. Start your free trial today »

There’s something about putting money into a stock and watching it quickly climb in price.

Something about buying up shares of a company at $32.71 and watching it climb to $39.25 in six months… then reach $62.15 eight months later… and hit $104.48 six years in.

Who doesn’t want that kind of action for their portfolio?

Who doesn’t want better?

Like how about all those lucky stiffs who said to themselves back in mid-2004, “You know what? I think I’m going to invest in Apple” (AAPL). Before that point, it couldn’t trade over five dollars – and it usually couldn’t trade over $2.

Yet today, it’s hard to think of Apple as anything but a powerhouse player on the Nasdaq. Despite its stock setbacks in the last year, a single share is still worth more than $180.

If we’re being honest with ourselves, every investor at least daydreams about getting in early on buying up “the next big thing,” whatever the next big thing may be. We crave that kind of profit because we want that kind of financial security: the ability to say…

  • Mortgage paid off? No problem. That’s done.
  • Complete college funds for the kids? Check.
  • All-expenses-included retirement plan in place? Tahiti, Patagonia and Sydney, here we come.

But how many of you close your eyes and wistfully contemplate financial security by way of dividend-yielding REITs?

Because that kind of profit is a lot easier to obtain. And you don’t need a spyglass into the future to know which ones to select and which ones not to.

You’ve got the past and the present readily available to provide you with a pretty solid roadmap to success…and not just a roadmap, but a REIT Roadmap!

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The Value of a Dividend

Dividend-yielding stocks in general and REITs

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This article was written by

119.52K Followers

Brad Thomas has over 30 years of real estate investing experience and has acquired, developed, or brokered over $1B in commercial real estate transactions. He has been featured in Barron's, Bloomberg, Fox Business, and many other media outlets. He's the author of four books, including the latest, REITs For Dummies.

Brad, along with HOYA Capital, lead the investing group iREIT®+HOYA Capital. The service covers REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives. The team of analysts has a combined 100+ years of experience and includes a former hedge fund manager, due diligence officer, portfolio manager, PhD, military veteran, and advisor to a former U.S. President.

Note: Brad is also related to Nicholas Thomas who contributes to Seeking Alpha.

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Analyst’s Disclosure:I am/we are long irm, mpw, stag, SKT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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