Daily dividend news for investors in dividend stocks
Published Tue, 20 Feb 2018 06:00:00 -0500 on Seeking Alpha
REITs are cheap.
The Vanguard Real Estate ETF (VNQ) is on sale. If investors genuinely believe that the market capitalizations for the tech giants are reasonable, they cannot also suggest that REITs are anything but cheap. If Apple (AAPL), Google (GOOG), Microsoft (MSFT), and Amazon (AMZN) are going to enjoy the dramatic growth in revenues that is priced into their shares, we must not be heading into a recession.
That seems like a reasonable premise, doesn’t it?
The market is hitting new all-time highs month after month. It would be ironic for an analyst to suggest we were headed directly into a recession.
If we are not going into a recession, then VNQ is very attractively priced. The retail space is facing a few challenges, but revenues and same property NOI are still positive for most of the large REITs. If we see inflation pick up, it could push bond yields higher. An increase in bond yields would suggest an increase in REIT yields (lower prices equals higher yields). Investors use that premise to avoid buying anything that is a REIT in a rising rate environment. While higher yields do create a headwind for REITs, higher inflation would mean higher rental rates.
A future with high inflation, but declining rental rates, is an absurd premise.
VNQ holdings Company
Vanguard Real Estate II Index
Simon Property Group
... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|HEALTH CARE REIT||52.22||41.1||1.27||3.48||6.40|
|SIMON PROPERTY GROUP||155.27||20.8||7.48||8.40||5.21|
Older articles featuring Health Care Reit (HCN):Is 6.7%-Yielding Welltower Inc. A Buy Right Now?
Dividend Sensei's Portfolio Update 24: No Dividend Is Ever Truly Safe
Top 10 Dividend Contenders Cast 21.7%-36.1% Net Gains Per Broker February 1Yr. Targets
Dividend Achiever Top Gainers: Meredith, Welltower And TransMontaigne To February 2019
Dividend Sensei's Portfolio Update 22: Correction Is Here! Time To Buy With Both Hands!
Upcoming Dividends; 75 Companies, 33 Increases, 18 Double Digit Increases!
24 Dividend Increases: January 29-February 2, 2018 (Part 1: Energy And Real Estate)
Dividend Sensei's Portfolio Update 21: It's The Best Time In 6 Years To Buy REITs
This High Quality 5.7% Yielding Healthcare REIT Is Very Attractive
Dividend Sensei's Portfolio Update 19: How To Stack The Deck, Beat The Market, And Get Rich Over Time