I was going to start out by saying that we live in a “go big or go home” society. But I realized how dated that statement would be.
Considering all the lockdowns, shutdowns, and stay-ins going on, we’re just a “go home” society.
With that said, staying home does mean we have plenty of time to be on the Internet. Which means we have plenty of time to be checking the markets out.
Which means we have plenty of time to be noticing the very high yields REITs are offering.
Very, very high yields, in some cases.
That’s what you get when prices plummet the way they did following the original coronavirus mortality predictions, and then when vast chunks of the national economy are told to shut down for two weeks, and then six weeks, and then two and a half months or more.
Naturally, stock prices go down. And unless the companies in question then cut their dividends, their yields are going to go up.
Very, very far up, in some cases.
That makes for a tempting-looking treat for many people, especially when their portfolios have been brutalized and their brains traumatized. They might not be thinking straight right about now when it comes to yield – which I completely understand.
When you’re broke, you don’t look a gift horse in the mouth. And when you’re starving, you don’t turn down what looks like free cheese.
Our goal is to make sure you don’t get snapped in a trap when you go for that bite.
How It Used to Be
I’ve warned against high-yielding REITs many a time before, including back in mid March. In “Now Is Not the Time to be a High-Yield REIT Investor,” I reiterated something I’d said back in January: That “buying into a high-dividend
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