High-quality REITs are trading at discounts due to a hawkish Fed, presenting significant upside potential and strong dividend yields for investors. Agree Realty has transformed its portfolio, boasts solid debt metrics, and offers a well-covered 4.1% dividend yield, making it a fair value investment. Realty Income's diversified portfolio and A-rated balance sheet support its 5.1% dividend yield, with shares trading below normal valuation, making it an attractive buy.
Achieving the first $100,000 is crucial for portfolio diversification and accessing material reinvestment opportunities. If the objective is to build a massive snowball from durable income investments, there are only a few asset classes that tick the necessary boxes. In this article, I explain how I would allocate $100,000 among MLPs, BDCs, equity REITs, and SCHD.
Monthly dividends can be enticing, but quality and sustainability of the dividend are crucial. Avoid "sucker yields" by analyzing fundamentals. Agree Realty is a high-quality REIT with consistent dividend growth, but its current valuation makes it a Hold. STAG Industrial offers a higher yield and trades at a discount, making it a Buy despite modest dividend growth.
For prudent retirement income seeking investors, securities that could be considered strategic fits should carry sound balance sheet, conservative cash flow profiles and at least above inflation-level growth prospects. In some situations, such strategic investments could also be tactically attractive in terms of producing strong returns over the near to medium-term. In this article, I present two investments that, in my opinion, should be seriously considered by defensive income investors.
Several companies currently offer dividend yields above 4%. They also have outstanding records of increasing their dividends.
Agree Realty achieves industry-leading growth at a low cost of capital, making it a fundamentally strong business and a long-term buy. REITs are expected to perform well given the lower interest rate outlook. The shares have caught up to value after rising by 32%, making ADC no longer significantly undervalued.
REITs still offer high yields, in excess of 7% in some cases. Some of these high yielders also pay monthly. I highlight two of my favorite to buy today.
REITs have rebounded due to recent Fed rate cuts, despite previous struggles with rising interest rates and the pandemic's impact on commercial real estate. I believe further upside is in store for REITs. I share why, as well as the REITs that I think offer the best risk-reward right now.
Warren Buffett invests in companies that enjoy strong moats. A moat is a major competitive advantage. This can be applied to REITs. Here is how.
Many investors focus on selecting robust businesses with stable cash flows, reinvesting dividends to benefit from compounding, and avoiding the need for frequent trading. In the equity REIT segment, there are some possibilities to find specific names that match these objectives. In this article, I present two REITs, which I have bought in my portfolio with an intent to hold forever.
Dividends are crucial indicators of a company's financial health, providing real returns and reflecting profitability, as emphasized by Kelley Wright in "Dividends Still Don't Lie". EastGroup Properties, a premium industrial REIT, has a strong dividend growth track record and a robust balance sheet, making it a Buy. Federal Realty Investment Trust, with a long dividend history and solid growth potential, is great for conservative income investors.
Agree Realty: Still Reasonably Valued For Its Rich Growth/Dividend Thesis - Initiate Buy