REITs are offering very high dividend yields right now. Some yield over 10%. But not all glitter is gold. Here are 2 high-yield suckers to avoid.
Investing in high-quality REITs offers predictable cash flows and strong capital access, but chasing high yields often signals low growth or potential dividend cuts. Global Net Lease faces risks due to weaker capital, high debt, and a history of dividend cuts, making it a poor investment choice. Sachem Capital struggles with non-accrual loans and frequent dividend cuts, suggesting better alternatives like Ladder Capital and Starwood Properties.
Healthcare Realty Trust, Global Net Lease, and Gladstone Commercial are REITs to avoid due to poor dividend growth and high payout ratios. HR's dividend history is weak with a payout ratio of 111%, indicating a potential future cut; recent executive changes add uncertainty. GNL's dividend history is negative, with a -8% CAGR; its high equity yield of 16% makes quality acquisitions difficult.
Global Net Lease Inc. (NYSE:GNL ) Q2 2024 Earnings Conference Call August 7, 2024 11:00 AM ET Company Participants Jordyn Schoenfeld - CPA Michael Weil - Chief Executive Officer Chris Masterson - Chief Financial Officer Conference Call Participants John Kim - BMO Capital Markets Bryan Maher - B. Riley Securities Upal Rana - KeyBanc Capital Markets Mitch Germain - Citizens JMP Operator Greetings.
Global Net Lease (GNL) came out with quarterly funds from operations (FFO) of $0.33 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.40 per share a year ago.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Global Net Lease (GNL) or EastGroup Properties (EGP). But which of these two companies is the best option for those looking for undervalued stocks?
Although the Federal Reserve's continued caution regarding interest rate cuts has stymied a further recovery for real estate investment trusts (REITs), when it comes to the top REITs to sell, that's not the main issue at hand. Rather, these clear-cut sells in the sector face either REIT-specific or property class-specific headwinds.
As many of my readers know, I'm not a yield chaser. I typically like to avoid "sucker yields" to prevent capital losses. In this article, I will examine three REITs that I'm avoiding.
Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Global Net Lease (GNL) and EastGroup Properties (EGP). But which of these two stocks presents investors with the better value opportunity right now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
We can all agree that the Federal Reserve's never-ending battle in curbing inflation has been incredibly exhausting. The latest in this saga is that the Fed believes it will have to keep interest rates “higher for longer,” which will likely result in significant volatility in the stock market.