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Screening To Shield REIT Yield Hogs From The Butcher's Knife

Published Fri, 06 Jul 2018 11:12:04 -0400 on Seeking Alpha

Income investors know all too well, especially in today’s still-stingy environment, that high yields typically come with high, often too-high as it turns out, risks. But there are “inefficiencies” to be found, especially with Real Estate Investment Trusts (REITs), where Mr. Market often waffles between seeing stock-like securities or ownership interests in real estate. This opens up opportunities for venturesome income-seekers to find unexpectedly high yields on unexpectedly good-quality REITs; BRX, CXW, KIM, NHI and WPC.
They Look Like Stocks
REIT units are often confused for common stock. That’s not surprising since they trade in the same marketplace the same way using the same brokers using a familiar ticker protocol, order entry protocols, conformations, etc. The entities also report financials the same way.
But They Aren’t Stocks
The T in REIT strands for Trust. For most purposes, the difference between a publicly-traded investment trust and corporation is confined to obtuse legalese about which we needn’t worry, except that there is one thing we can’t ignore: Trusts are not taxed the way corporations are. Unlike a corporation, a bona fide REIT (i.e. one that is operating as a REIT should) pays no taxes and distributes substantially all of its profits to the unit holders (shareholders) as dividends.
This, of course, has no impact on yield; that’s determined by how Mr. Market chooses to price the units. But... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
CORECIVIC 23.80   16.6 1.43 1.76 7.42
BRIXMOR PROPERTY GROUP 18.20   14.9 1.22 1.12 6.25
KIMCO REALTY 18.73   19.5 0.96 1.12 6.12
NATIONAL HEALTH INVESTORS 78.56   21.9 3.58 4.20 5.39
WP CAREY & CO 85.28   27.1 3.15 4.13 4.86


Older articles featuring Corecivic (CXW):
2 High-Dividend REITs Yielding Over 8%, With Higher Guidance, No K-1s
Our High Yield REIT Portfolio Heading Into The 2nd Quarter
Your 50 Real Estate WallStars By Yield And Target Gains For February 2020
Our 10% Yielding REIT Portfolio Heading Into 2019
Our Intelligently Diversified High Yield REIT Portfolio Designed For Outperformance
Tweaking My REIT Yield-Hog Screen For Better 'Distribution Quality'
Our High Yield REIT Portfolio Designed For Outperformance
Our High Yield, Value REIT Portfolio Designed For Outperformance
'Safer' Dividend Real Estate Stocks Led By CoreCivic, Ellington, EPR, & Cherry Hill, By Broker December Targets
Niche Industry REIT Yields 7.5%, Strong Balance Sheet, Near 52-Week Lows, 11% Below Lowest Price Target