Buy The 5% CD Or These 4 Monthly-Paying REITs?

Apr. 03, 2023 7:00 AM ET, , , 182 Comments

Summary

  • There’s absolutely nothing wrong with putting your cash in a CD (so long as it’s FDIC insured).
  • However, today I'm going to provide you with another alternative that can provide you with a potentially safe 5% yield and some icing on the cake.
  • Prominent value investor Professor Joel Greenblatt explained in a 2011 Barron’s interview, “it’s about figuring out what something is worth, and then paying a lot less for it".
  • Looking for a helping hand in the market? Members of iREIT on Alpha get exclusive ideas and guidance to navigate any climate. Learn More »

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It seems that I’m getting comments like this one almost every single day,

“Brad, I’m just going to put my money in a CD that earns me 5% interest, there’s no need to buy a REIT that yields 5%.”

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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/we have a beneficial long position in the shares of ADC, LTC, O, STAG either through stock ownership, options, or other derivatives. 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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SymbolLast Price% Chg
ADC--
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LTC--
LTC Properties, Inc.
O--
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STAG--
STAG Industrial, Inc.

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