RQI: A Quality Play On Real Estate

Summary

  • Cohen & Steers Quality Income Realty Fund has managed to beat the index ETF since its inception.
  • That is a remarkable feat as most pre-2008 closed end funds took way too much damage to come back to this extent.
  • The fund uses less leverage today than in the past and it is a good play on the real estate sector.
  • I do much more than just articles at Conservative Income Portfolio: Members get access to model portfolios, regular updates, a chat room, and more. Get started today »

Everyone loves a discount at their favorite retail store. But when a discount is offered on the best stocks or funds, people surprisingly look the other way. 2020 will be long remembered for the pandemic and its impact to the world. But it will also be remembered for some big bargains that were offered up. Most notable among them were sectors like energy and real estate. This has been a year where for the most part, those two sectors have been pummeled. But with two back to back vaccine progress news, things have perked up. While the initial blast off is encouraging, we believe this game is still in its early innings. But the field is still treacherous and the exact timeline of the recovery remains uncertain. Investors can do their own due diligence or perhaps pass the buck on to someone who knows this sector really well.

Cohen & Steers is a company that knows real estate inside and out. They are a global investment manager specializing in real estate securities and other income solutions. There are many ways to access their expertise, but perhaps the easiest way for investors is to buy their closed end funds. The one we shall look at today is Cohen & Steers Quality Income Realty Fund (NYSE:RQI).

The Fund

RQI states that its investment objective is to provide a high current income. Capital appreciation is a secondary investment objective. The fund invests in REITs and this may be done via common shares or preferred shares of these companies. The fund also invests in "REIT-like" entities, when necessary. It has a decent size and manages almost $2.3 billion in total assets. Over the very long term the fund has delivered on its objectives.

Performance

The fund has delivered sweet returns over the last decade

Are you looking for Real Yields which reduce portfolio volatility and outperform in bear markets?

Conservative Income Portfolio  targets the best value stocks with the highest margins of safety. The volatility of these investments is further lowered using the best priced options. Our Cash Secured Put and Covered Call Portfolios are designed to reduce volatility while generating 7-9% yields.  We focus on being the house and take the opposite side of the gambler. 

Learn more about our method & why it might be right for your portfolio. We are offering the next 20 subscribers a 20% discount to try our method risk-free!
tets

 

 

This article was written by

45.62K Followers

Trapping Value is a team of analysts with over 40 years of combined experience generating options income while also focusing on capital preservation. They run the investing group Conservative Income Portfolio in partnership with Preferred Stock Trader. The investing group features two income-generating portfolios and a bond ladder.

Trapping Value provides Covered Calls, and Preferred Stock Trader covers Fixed Income. The Covered Calls Portfolio is designed to provide lower volatility income investing with a focus on capital preservation. The fixed income portfolio focuses on buying securities with high income potential and heavy undervaluation relative to comparatives. Learn more.

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.

Recommended For You

About RQI Ticker

SymbolLast Price% Chg
Expense Ratio
Div Frequency
Div Rate
Yield
Assets (AUM)
Volume
Compare to Peers

More on RQI

Related Stocks

SymbolLast Price% Chg
RQI
--