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A High Yield Portfolio In A Zero Yield World

Published Fri, 13 Nov 2020 06:30:00 -0500 on Seeking Alpha

Seeking AlphaREITs | Editors' PicksA High Yield Portfolio In A Zero Yield WorldNov. 13, 2020 6:30 AM ET|| Includes: AHH, AHH.PA, ARR, ARR.PC, FPI, GMRE, GMRE.PA, GNL, GNL.PA, GNL.PB, GOOD, GOODM, HTA, IRM, LANDO, MPW, NLY, NLY.PD, NLY.PF, NLY.PG, NLY.PI, SLG, SLG.PI, STAG, STAG.PC, TWO, TWO.PA, TWO.PB, TWO.PC, TWO.PD, TWO.PE, UMH, UMH.PC, UMH.PD, UNIT, WPCby: Dane BowlerDane Bowler Value, REITs, Long/Short Equity, Research Analyst2nd Market Capital.cls-1{fill:#024999;}SummaryThe REIT Wealth Builder portfolio has a 7.08% dividend yield which doubles REITs and is nearly 4X the S&P.
This higher yield is supported by cash flows as the RWB portfolio has a 7.67% FFO yield.
These hand-selected stocks are discounted to fundamental value which paves the way for significant capital gains on top of the dividends.
In celebration of the launch of the REIT Wealth Builder Newsletter I will share with you the November issue. From here forward this content and the portfolio will be exclusive to subscribers. Enjoy!
Welcome to the November issue of REIT Wealth Builder! This issue will include my top pick of the month and a full review of the portfolio in terms of how it is positioned and an elevator thesis on each stock within. I believe the relative attractiveness of the RWB portfolio is increasing as the consensus continually shifts toward this being a zero yield world. Discounted REITs are one of few sources of diversified high yield.
The time of the 60/40 portfolio has ended and the portion of people’s portfolios that used to consist of bonds will have to shift into some other cash flowing securities. I believe REITs are those securities and because these are complex operating businesses with widely differing outlooks, it is crucial to pick the right ones.
Before I get to the portfolio and the stock-specific analysis, I want to show why today represents a point in time at which REITs are unusually opportunistic.
First off, REITs are generally a good place to... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ANNALY CAPITAL MANAGEMENT 8.60   0.0 -3.32 1.20 14.00
ARMOUR RESIDENTIAL REIT 17.26   0.0 -9.30 2.04 12.03
TWO HARBORS INVESTMENT 13.28   0.0 -2.81 1.60 12.02
IRON MOUNTAIN 34.14   28.4 1.20 2.44 7.29
GLADSTONE COMMERCIAL 23.28   1.0 0.02 1.50 6.56
MEDICAL PROPERTIES TRUST 18.94   7.3 2.61 1.04 5.30
UMH PROPERTIES 13.64   0.0 -1.18 0.72 5.26
STAG INDUSTRIAL 29.50   47.6 0.62 1.43 4.93
ARMADA HOFFLER PROPERTIES 18.04   53.1 0.34 0.84 4.75
WP CAREY & CO 88.72   31.4 2.83 4.14 4.73
HEALTHCARE TRUST OF AMERICA 28.29   27.5 1.03 1.26 4.45
SL GREEN REALTY 82.69   30.0 2.76 3.40 4.12


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