Quick Note: After announcing a dividend hike just last week, this week—big-dividend REIT WP Carey announced it would be spinning off its office properties and a dividend resizing (reduction) is forthcoming later this year. In this quick note, we offer our thoughts and opinion on investing.
100+ Big-Yield REITs: Terrible Performance, Few Attractive Opportunities
The following table includes data on over 100 big-yield REITs, sorted by REIT industries (and then market cap). And as you can see, recent performance has been mostly terrible with 2-year total returns very negative, and lots of REITs sitting near 52-week lows. The carnage has clearly been worse for some industries more than others, and short-interest remains high in certain areas (indicating lots of investors believe there is still more pain to come). In this quick note, we briefly review the REIT market by sub-industries and then highlight a very select few big-dividend REITs that appear attractive and worth considering for investment.
6.3% Yield REIT: 10 Good Things, 5 Big Risks, 1 Conclusion
The 6.3% dividend yield REIT we review in this report recently announced quarterly earnings, whereby it beat expectations. However, the share price is down this year (despite gains for other top dividend REITs), thereby leaving investors wondering what is happening and if the shares are worth investing. In this report, we review the company and its strategy, and then review 10 good things about it, 5 big risks to consider, and finally share our one bottom line conclusion about investing in this big-dividend REIT.
Diversified Blue Chip REIT: Despite Big Risks, 6% Yield Is Attractive
When it comes to big-dividend REITs, the one we review in this report is a stalwart favorite. Having increased its annual dividend (paid quarterly) for over ten years straight, and now trading down 20% in the last month, investors are wondering if they should initiate a position (or even buy more shares). In this report, we review the business and then consider the current valuation versus two big risks. We conclude with our strong opinion on investing.
Attractive 5.3% Yield REIT: Compelling Valuation
The net lease REIT we review in this report has come through the pandemic largely unscathed thanks to the mission-critical nature of it properties for its tenants. It also has an impressive dividend history, with consecutive annual increases since going public in 1998. Looking ahead, this REIT has multiple growth catalysts that should help it continue its impressive track record. In this report, we review the health of the business, valuation, risks, dividend safety, and then conclude with our opinion on investing—particularly if you are a long-term income-focused investor that also likes growth.
The Safest and Strongest Net-Lease REIT with a 5.8% Dividend Yield
This REIT is one of the largest net-lease REITs benefiting from the unmatched diversity in its portfolio and its deep expertise in sale-leasebacks. The portfolio has displayed very strong resilience to the pandemic, as its rent collections have remained strong throughout. It also has an impressive dividend history with consecutive dividend increases every year since it went public in 1998. We are also encouraged by its successful track record of operating through economic downturns and using them to build and grow a high-quality portfolio through opportunistic investing. Despite all the odds in favor, the stock has underperformed this year. We believe at the current price, the REIT offers an attractive investment opportunity from an income generation, capital preservation, and capital appreciation perspective. This article reviews the health of the business, valuation, risks, dividend safety, and concludes with our opinion about why it’s worth considering if you are a long-term income-focused and growth-oriented investor.
New Options Trade: Fear Creates High Income REIT Opportunity
As the market fear index (VIX) has been rising again, so too has the upfront premium income in the options market, particularly for property REITs. This particular report shares a compelling option trade that generates high upfront income and gives you the chance of owing shares of an outstanding blue chip property REIT at a compelling lower price. We believe this is an attractive trade to place today and potentially over the next several trading sessions, as long as the underlying stock price doesn’t move too dramatically before then.
New Options Trade: High Upfront Income, Property REIT Fear
The coronavirus has created major challenges for some sectors more than others, and property REITs have been hit hard. Uncertainty has lead to fear, dramatically lower market prices, and high upfront premium income available in the options market. This report shares an attractive options trade on a compelling big-dividend REIT. We believe the this is an attractive trade to place today, and into early next week, so long as the underlying stock price doesn’t move dramatically before then.
High Quality, Stable REIT: 5.6% Yield, Attractive Valuation
The recent market wide sell off has been ugly. This article focuses on a REIT that is particularly attractive considering management has been a sound steward of capital by simplifying the business model, lowering the cost of capital and growing the dividend. Further, this REIT may be poised to take advantage of current market distress thanks to its lower debt and the cushion it enjoys relative to debt covenants. If you are a long-term income-focused investor, this one is absolutely worth considering (we own it).
Options Trade: WP Carey REIT, Attractive Income
REITs have been on fire this year, as you can see in the following chart. REITs (XLRE) are up more than 30%, while the S&P 500 is up just over 20%. And popular, 4.6% dividend yield, WP Carey REIT is up an impressive 42% year-to-date. For those of you who wish you’d have bought into WP Carey at a lower price (and for those of you who may want to buy more), there is another way, besides just sitting and waiting for a sell-off so you can “buy low.”
Market Too Hot? Top 5 Big-Dividend REITs Worth Considering
This article is the private, members-only continuation of our free public report titled: Market Too Hot? Top 10 Big -Dividend REITs Worth Considering. Except this members-only version counts down the REITs we have ranked #5 to #1. Without further ado, here is the list…
W.P. Carey’s 5.3% Yield: Is Portfolio Restructuring A Big Red Flag?
W.P. Carey (WPC) has undergone major portfolio restructuring including its significant acquisition of Corporate Property Associates 17 Global (“CPA:17”) in October 2018, and its increased M&A and disposition activity, in general. And while this activity is creating some operating turbulence in the near-term, management believes its inorganic growth strategy will be accretive to AFFO/share in the long-term. This article considers the various strengths of WPC, its dividend safety, valuation, and then concludes with our opinion about whether WPC’s current operating dynamics are a red flag or if this big-dividend REIT is worth considering for investment.
Simon Property: 5 Popular High Yield REITs, Due For A Pullback
As the market has climbed dramatically this year, so too have many popular high yield REITs, such as SPG, O, WELL, VTR, OHI, STAG and WPC. And despite the Fed’s recently decreased interest rate hawkishness, it is still concerning to see these popular “safe haven” REITs did NOT fall nearly as hard as the rest of the market during Q4 and their share prices & valuations are now unusually high. When sentiment changes, these popular REITS are due for a pullback, perhaps a big one. This article reviews valuations and concludes with our opinions.
Top 5 High-Yield Contrarian Opportunities (Members-Only)
Top 10 Big-Dividend REITs: The Mass Exodus Continues
High-yield REITs continue to sell-off as investors exit in droves. This article highlights performance (and more data) on over 100 high-yield REITs that have sold off significantly. We then explain why REITs have sold off, and provide our views on why some REITs are starting to look increasingly attractive. We conclude with details on 10 specific high-yield REITs that are increasingly attractive and worth considering.
100 High-Yield Stocks Down Big Last Week: These 10 Are Worth Considering
Market fear spiked on Friday (the VIX was up 28.5%), and the Dow Jones experienced its biggest weekly decline in over 2 years (-4.1%). Interestingly, many higher yielding stocks also sold off significantly, and this article highlights ten that we believe are attractive and worth considering, especially following the selloff.