Maintaining A Tactical Exposure To REITs And Other Dividend Paying Stocks

There are many reasons that investors should consider owning REIT shares today. As Thomas Bohjalian, Executive VP and Portfolio Manager at Cohen & Steers, wrote in a recent white paper: "The recent pull back in shares of real estate investment trusts has created an attractive entry point, in our view, as many high-quality companies are now trading for less than the value of their underlying properties. We expect REITs' performance profile to improve in 2014, as the benefits of a strengthening economy should outweigh headwinds from higher Treasury yields."

A few examples include the recent announcement by Essex Property Trust (ESS) to acquire BRE Properties (BRE), and the pending merger of American Realty Capital Properties (ARCP) and Cole Real Estate Investment Trust (COLE). Also, and as I mentioned in an article yesterday, Ventas, Inc. (VTR) could be an interesting play for BioMed Realty (BMR), a Life Science REIT trading at one of the lowest multiples in the broader Health Care space.

Source: Seeking Alpha

Related Articles:
- 5 Dividend Stocks Building A Growing Cash Stream
- 9 Dividend Stocks Beating The 4% Rule
- How To Buy Dividend Stocks At The Bottom
- 8 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends
- Three Keys For Successful Dividend Growth Investing