REITs all adhere to the same federal law that requires they pay out at least 90% of net earnings to shareholders, as dividends. Thus, REITs are effectively arbitrage plays. They draw inexpensive debt, use the money to purchase or develop real estate of some form, then generate cash flows of various amounts by leasing the property. Sometimes REITs just get rent, and sometimes the tenant pays for insurance and maintenance, along with property taxes (if all three, it’s called a “triple net lease”). After expenses are paid, debt gets serviced and taxes are taken out, 90% of the remainder is distributed as a dividend. REITs to Buy...
Avalonbay Communities Inc (NYSE:AVB) actually enhances the apartment approach by also operating and owning multifamily communities. AVB will purchase distressed communities and renovate them or create them from scratch. Retail Opportunity Investments Corp (NASDAQ:ROIC) is another REIT that has some property in my neighborhood, and it gave me the chance to see exactly what kind of operation it runs. Senior Housing Properties Trust (NASDAQ:SNH) is doing so well that it pays a 7.8% dividend. It also doesn’t simply focus on senior living facilities, but other facilities that service that sector.
Source: InvestorPlace
Related Articles:
- Why Dividends Matter
- Hey, You Invest Like a Girl!
- Are Storm Clouds Gathering For These 4 High-Yielding Securities?
- Weekly Links: May 13, 2017
- 5 Dividend Stocks With A Low P/B Ratio
________________________________________________________________
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 ...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
Add it all up, and things are starting to get tense. That leaves investors wondering where they can go for safety. After years of tech outpe...
-
Are you on the hunt for a generous and reliable dividend stock? If so, the list of Dividend Aristocrats -- comprised of those few companies ...
-
Individual investors were jolted by the sudden reappearance of market volatility in October. Given a range of issues spanning natural gas av...
-
If you’ve paid any attention to the financial news lately, you’d know that market sentiment has changed. This shouldn’t come as a surprise; ...
-
Dividend-paying stocks are like the ballast that keeps a ship from capsizing during stormy seas. They provide grounding for investors who, w...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Without a doubt, buying and holding stocks is the best way to generate wealth over long periods of time. And we're not talking about hol...
0 comments
Post a Comment
Post a Comment