Want to know a little secret? When it comes to certain high-yielding sectors, many investors are putting too much stock in the theory that rising interest rates will kill their returns and result in losses. Case in point — real estate investment trusts (REITs). Designed to allow regular retail investors to invest in commercial properties, REITs are required to pay out the vast bulk of their cash flows as dividends. That payout requirement produces yields in the 4% to 7% range for the majority of the sector. But the specter of rising interest rates has many investors spooked about REITs’ potential total returns in the upcoming few years.
Well, don’t fret. REITs and your portfolio will be just fine. While REITs do feel rising interest rates immediately, this knee-jerk reaction from market participants fades and performance rebounds sharply. So if you’re still looking for income or want a great total return, REITs should still make up a percentage of your portfolio. Here’s three top notch REITs to buy today: Realty Income Corporation (O), SL Green Realty Corp. (SLG) and Health Care REIT, Inc. (HCN).
Source: InvestorPlace
Related Articles:
- 4 Higher Yielding Basic Materials Stocks With Growing Dividends
- 7 Dividend Growth Stocks That Could Make You Wealthy
- 12 High-Yield Managed Distribution Policy Funds
- 6 High-Yielding Mega-Cap Stocks
- Dividend Investors Should Focus On Stocks, Not The Market
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
Whether you are looking to supplement your income or looking to build wealth over very long periods of time, dividend stocks that can reliab...
-
There have been a lot of business cycles over the past five decades, ups and downs through which it takes astute leadership to survive and t...
-
This BDC remains a "Strong Buy". It has a diversified investment portfolio with considerable NII-upside. Shares sell for a premium...
-
A safe yield and solid growth prospects are a must for any investor in real estate investment trusts -- and this company not only has these ...
-
The S&P 500 might be on one of its strongest bull runs ever, but there are several solid dividend stocks out there that haven't quit...
-
I own roughly 30 stocks in my personal portfolio, but there are some I bought because I think they're currently undervalued -- not neces...
-
Finding an attractive dividend stock in the technology sector isn't difficult, despite the notion that tech companies are miserly when i...
0 comments
Post a Comment
Post a Comment