Now Is Not The Time To Be A High-Yield REIT Investor


  • We're living in an all new paradigm in which the world is being shut down by social distancing.
  • We've put together a stress test guide designed to steer investors away from high-yielding REITs. We want to focus on the safest names instead.
  • I've trained 30 years for this black swan. Now it's time to go to work.
  • This idea was discussed in more depth with members of my private investing community, iREIT on Alpha. Get started today »

Have you ever heard of black swans?

Not the bird. Those exist too, of course, and they're apparently not as rare as they once were.

But what I'm talking about is the event - the kind that nobody wants to see and nobody usually does - but that still lurks in the shadows regardless, waiting for as random a moment as possible to jump out and say, "Boo!"

Sound familiar?

I'm sure I don't have to tell you how, in the middle of an amazing economy and stock market, we got jumped. COVID-19, also known as the coronavirus, has spooked us for sure.

I'm also sure I don't need to point out how horribly the markets fell earlier this week. It was painful, to say the least. Painful and very, very real.

There's no getting around that fact.

Yet, if someone had suggested such a possibility back in December of last year - or even this January - they would have been pegged as crazy and scoffed out of the room.

With good reason, when black-swan events are exceptionally rare and even more elusive. You have to be an economic prophet to predict them.

I'm not a prophet, and I don't claim to be one. But I'm a man of conviction and principle, two qualities that existed both before the coronavirus hit and after.

Therefore, I'm going to tell you the same thing I've been telling you for over a decade now…

It's all about quality. Accept nothing less.

Chasing Yield Is the Opposite of Concentrating on Quality

I know you've heard me say this time and time again on Seeking Alpha. But given the context of the current pandemic, let me repeat myself as strongly as I can:

"Now is not the time to be chasing yield."

In late

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As Dividend Kings co-founder Chuck Carnevale says on our brand-new vodcast (video + podcast), this latest crisis is "more than likely going to have a short-term effect." In the meantime, "There is great opportunity" to take advantage of... subscribe to iREIT on Alpha (2-week free trial).

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This article was written by

Brad Thomas profile picture
Author of iREIT on Alpha
The #1 Service For Safe and Reliable REIT Income

Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 15,000 investors around the world. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps.

The WMR brands include: (1) iREIT on Alpha (Seeking Alpha), and (2) The Dividend Kings (Seeking Alpha), and (3) Wide Moat Research. He is also the editor of The Forbes Real Estate Investor

Thomas has also been featured in Barron's, Forbes Magazine, Kiplinger’s, US News & World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox. 

He is the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 (based on page views) and has over 108,000 followers (on Seeking Alpha). Thomas is also the author of The Intelligent REIT Investor Guide (Wiley) and is writing a new book, REITs For Dummies. 

Thomas received a Bachelor of Science degree in Business/Economics from Presbyterian College and he is married with 5 wonderful kids. He has over 30 years of real estate investing experience and is one of the most prolific writers on Seeking Alpha. To learn more about Brad visit HERE.

Analyst’s Disclosure: I am/we are long HT. 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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