3 Residential mREITs Offering 10% Yields And Significant Discounts To Book

Summary

• The stock market is overpriced right now, and yields in big index funds are paltry.
• We are finding opportunities among slow-growing dividend stocks priced at deep discounts to intrinsic value.
• Today, we look at 3 mREITs that have caught our eye.
• Looking for a portfolio of ideas like this one? Members of High Yield Investor get exclusive access to our model portfolio. Get started today »

As we highlighted in our recent piece Billionaire Investor's Warning Of Lost Decade Is Why We're Buying Higher Yield:

Berkshire Hathaway's (BRK.B) (BRK.A) Charlie Munger recently warned that equity returns in the coming decade would be lower than they were in the past decade. Reasons he cited included unprecedented levels of investor enthusiasm and participation in the markets, incentive systems for management teams, astounding amounts of money printing by the Federal Reserve, and historically low interest rates leading to elevated valuations today.

Indeed, the S&P 500 (SPY) has seen its price-to-earnings ratio more than double over the past decade while generating an impressive 255% total return. The Dow Jones (DIA) generated nearly as impressive a return at 222.1%. The NASDAQ (QQQ) took it to a whole new level with 525% total returns over that time span.

Even more impressively is how well the tech "FAANG" (Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), and Google (GOOG) (GOOGL)) giants have done:

Yet even more wild is how wild highly speculative futuristic disruptive tech investments like Bitcoin (BTC-USD), Ethereum (ETH-USD), Tesla (TSLA), and ARK Innovation ETF (ARKK) have been:

Last, but not least, let's not forget some of the high-flying IPOs from this past year like DoorDash (DASH) and Airbnb (ABNB), which exploded out of the gates relative to their pre-IPO prices, or the Wall Street Betts fueled GameStop (GME) and AMC Entertainment (AMC) crazes that took both on brief trips to the moon:

What do investors do now? Does the fear of missing out on these amazing opportunities overwhelm our commitment to fundamental analysis?

It is hard to focus on investments that - when you are on your "A" game - generate maximum returns of 20%-50% annually when random kids investing on Robinhood are doubling, tripling, or even 10x their money in relatively short periods of time simply by following

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.