REIT valuations have taken quite a hit lately, and it opens up new buying opportunities for cash-rich income investors. I have not bought any Real Estate Investment Trusts in 2016 at all, largely because REIT valuations became so stretched that the risk-reward-equation was not tilted into the favor of income investors in my opinion. The consolidation in net-lease REIT valuations offers an interesting entry point. This REIT has made great progress in strengthening its balance sheet and it recently snatched a credit rating upgrade, attesting to the REIT's progress in terms of improving balance sheet stability. The stock throws off a 6.5 percent dividend.
The recent consolidation in REIT valuations, however, has not only taken a toll on REITs at the lower end of the risk spectrum, but also on REITs at the higher end of the risk spectrum. VEREIT Inc. (NYSE:VER), for instance, is such a "higher-risk" REIT. Expectations over an interest rate hike and a shakeout in the REIT sector have hit VEREIT, too. Thanks to falling REIT prices in light of an expected interest rate hike in December, investors today can gobble up VEREIT's shares at less than eleven times AFFO, or a roughly 9.2 percent AFFO yield. What's more, VEREIT sells for about half the AFFO multiples of its more stable peers.
Source: Seeking Alpha
Related Articles:
- 17 Investments That Pay Monthly Dividends
- 5 Dividend Stocks To Build Your Future Security
- 7 Dividend Stocks With A Low Payout Ratio
- 5 Dividend Stocks Beating the S&P With Positive Returns In Excess of 50% YTD
- Income Annuities vs. Dividend Stocks
________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
The quick rise in interest rates over the past year turned investor sentiment toward REITs negative. Higher interest rates make it harder fo...
-
Indeed, with recession on the horizon, investors are increasingly emphasizing quality, safety and dividends in their portfolio selections. W...
-
Ultimately, dividend income and capital appreciation come out of one bucket. So focusing on total return, not just dividend yield, will help...
-
A great year for dividend growth stocks is one in which there are few dividend cuts and fewer companies that failed to raise their dividends...
-
Cash is king when you’re looking to add dividend stocks to your portfolio There’s ample reason for caution. In case you haven’t noticed, a l...
-
Countless people dream of being able to pay their bills with the cash they receive from their investments. But it doesn't have to be jus...
-
There's no time like the present to invest in dividend stocks. Doing so kicks off the process of receiving extra income in the form of d...
-
The Financial Services Sector includes insurance companies, banks, brokerages, mutual funds and other similar companies. Before the 2008-09 ...
-
Linked here is a detailed quantitative analysis of Union Pacific Corporation (UNP). Below are some highlights from the above linked analysis...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.