RQI: Real Estate Is On Fire And This 7.84% Yielding CEF Can Go Higher

Steven Fiorillo
36.83K Followers

Summary

  • Big tech led the market in 2023, but a broad market rebound is expected in 2024, with the income trade becoming more popular.
  • The Cohen & Steers Quality Income Realty Fund is a diversified CEF focused on real estate, generating a 7.84% annualized distribution.
  • The income trade in real estate is expected to do well in 2024 as interest rates decline, making REITs an attractive investment. RQI is expected to continue rebounding and generating large distributions.

Money on the edge

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2023 was the year of big tech as the Magnificent 7 led the markets higher. Income-producing assets fell out of favor, with the risk-free rate of return exceeding 5%. Many sectors, including industrials, real estate, energy, and utilities, underperformed the market as investors had less of

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I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking Alpha

Analyst’s Disclosure:I/we have a beneficial long position in the shares of RQI 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.

Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation for the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.

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