Dividend-News

Daily dividend news for investors in dividend stocks


Chart Of The Week: U.S. REIT Dividend Yields

Published Mon, 12 Feb 2018 02:04:47 -0500 on Seeking Alpha

US REITs have been double-hammered by the rise in bond yields and equity market correction. Since peaking in August 2016, the Dow Jones REIT index fell -17%. By way of comparison, the S&P500 index *rose* +19% over the same time period (even after the 10% correction), which represents a miserable -36% underperformance. It did gain some respite, however, 'only' falling -9% vs. -10% for the S&P500 during the correction so far.
One positive out of that though is that the index dividend yield has risen to the highest point since the 2011 correction (which in hindsight proved an opportune buying time).

As we know (just look at the 2008 experience), cheap things can get cheaper, and dividend yields can move higher during sustained down moves and bear markets. Given that our base case is that bond yields move higher, and lingering uncertainty around the equity market, it is possible that REITs could come under further pressure.
While REITs are often thought of as a defensive asset, in this environment, that has only proven partially true, and should a deeper downturn in equities take hold, there will be no hiding in REITs.
However, spikes in dividend yields like the one we are seeing now have in the past proven good tactical buying opportunities. So while a better opportunity to allocate to REITs may come, the case is slowly building.


About this article:
ExpandTagged: Dividends & Income, REITsWant to share your opinion on this... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
NUVEEN REAL ESTATE INCOME FUND 10.71   0.0 0.00 0.00 6.99
RMR REAL ESTATE INCOME FUND 20.04   0.0 0.00 0.00 6.66
COHEN & STEERS TOTAL RETURN REALTY FUND 14.98   0.0 0.00 0.00 6.56
COHEN & STEERS REIT 23.56   0.0 0.00 0.00 6.38
COHEN & STEERS QUALITY INCOME REALTY FUND 15.60   0.0 0.00 0.00 6.30
ISHARES COHEN & STEERS REALTY MAJORS INDEX FUND 118.41   0.0 0.00 0.00 0.00

NUVEEN REAL ESTATE INCOME FUND - JRS
NUVEEN REAL ESTATE INCOME FUND - JRS  


Older articles featuring Nuveen Real Estate Income Fund (JRS):
Resolving The Contradictory Signal Between The Yield Curve And Housing: Watch Corporate Profits
Infrastructure REITs: A Match Made In Low Yield Environment Heaven
Global X SuperDividend REIT ETF: A Solution In Search Of A Problem?
Yield Hunter CEF Report March 2019: Distribution Cuts Pick Up, But So Do Increases
Barron's Says To Buy MLPs In 2019, Yet Its Best Yield Plays Favor Vodafone
Will Rates/Yields Peak Soon?
100 High-Yielders Down Big: These 5 Are Worth Considering
Housing History And Why The Yield Curve Got So Flat
Mortgage Rates Head To 6%, 10-Year Yield To 4%, Yield Curve Fails To 'Invert,' And Fed Keeps Hiking
Want To Be A High Yield Landlord? Hop Aboard The REIT Income Train

More