I only recently added this stock to my high-yield income portfolio. That said, though, U.S. recession risks are growing and hotel REITs are highly cyclical investments. Its volatile RevPAR and payout ratio raise distribution risks during a downturn. Shares are still moderately valued. I see a 50-60 percent chance of a U.S. recession over the next twelve months.
Apple Hospitality REIT, Inc. (APLE) is vulnerable to a cyclical downturn in the hotel industry, which is why I am going to scale back my exposure to the hotel real estate investment trust this week. I added the lodging REIT to my investment portfolio only a couple of months ago but believe downside risks have grown considerably since then. Investors still seem to be largely in denial of growing risks to the economy, which is another red flag for me. Time to tread carefully.
Source: Seeking Alpha
Related Articles:
- How To Build A Sustainable High Yield Portfolio
- How To Buy Dividend Stocks At The Bottom
- 8 Stocks That Have Paid Dividends Since The 1800s
- 5 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends
- 3 Exceptional Dividend Growth Stocks With Quality Financials
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Utility stocks have been relatively volatile in the recent past. However, most utility stocks have a low beta and have a stable cash flow vi...
-
Many investors search for safe, dividend-paying stocks. As John D. Rockefeller once said: "Do you know the only thing that gives me ple...
-
Dividend stocks have fallen out of fashion during the pandemic. With interest rates at rock-bottom levels, investors have fled from assets l...
-
One way to identify suitable candidates is to look for stocks with an average dividend yield of 3%, and positive average annual dividend gro...
-
With interest rates near zero, many investors are turning to dividend stocks for income. And for some investors, the higher the yield, the b...
-
The U.S. economy officially entered into a recession in February, and challenging conditions will likely continue in the near future. The co...
-
Energy Transfer (NYSE:ET) pays a monster cash distribution. Given the big slide in its unit price, -- they're down more than 50% in the ...
-
The rollout of fifth-generation network services, also known as 5G, enhances the appeal of each of these three dividend-paying, 5G technolog...
-
Prices of energy commodities like natural gas are important for consumers and investors alike. Earlier in the year, natural gas prices in th...
-
Unfortunately, some investors that are new to dividend stocks end up chasing the highest yield stocks they can find and end up getting burne...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.