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
-
REITs don’t just pay out attractive yields; many of these companies are terrific operators too. So not only do investors get to collect a so...
-
The company reported solid results for its fourth fiscal quarter. The business development company once again covered its dividend payout wi...
-
It’s in volatility like this that the value of dividends truly shines through. The market could be having a massive sell-off, but when a com...
-
If you are interested in high-yield dividend stocks, it’s better to focus on a company’s history of growing its dividend rather than just lo...
-
Buying and holding high-quality dividend stocks is arguably the best way for investors to predictably achieve outsized returns over the long...
-
While conventional wisdom holds that you reach for yield, my strategy has been to look first for capital gains, then to management teams tha...
-
I screened for cheap dividend stocks that are showing some upward movement, trading above their 50-day moving average, with a 3% or higher d...
-
There are hundreds of high-yield dividend stocks on the market. At least, that's the case if your definition of high dividend yield isn&...
-
Most investors near the end of their working years are wise enough to avoid risky marijuana stocks. Unfortunately, recognizing relatively sa...
-
If you are a longtime yield seeker, you’ve probably noticed one thing: most of the double-digit yielders also happen to be beaten-down stock...
0 comments
Post a Comment
Post a Comment