How REITs Satisfy the Need for Yield

reit investingThe global search for yield isn’t going anywhere. But since U.S. stocks are looking overvalued on several measures and the bond market is showing danger signs, real estate investment trusts are a pretty attractive option, particularly U.S. ones that should continue to perform well with a gradually improving economy.

REIT dividend yields do not fully reflect the rally U.S. stocks have experienced in the past four years. Indeed, they’re remained pretty flat for the past nine years or so.

Using the FTSE NAREIT All Equity REIT Index as a benchmark, yields for U.S. names have been stuck in a relatively narrow range of 3.2 to four per cent since 2006.  Read More…

This article has 11 Comments

  1. Olliver F

    REIT's have had a good run for a very long time and i feel are ont he tail end of the curve and so i think there isnt much more before the big declines come.

  2. Daren

    I dont understand what is the point of buying into this when i can just own property.

  3. Keagan Huff

    I am still amazed that the real estate market is still booming here. Especially in vancouver. I was looking up today and saw the average house is $800K there for something mediocre. Crazy but exciting. I have never owned a home more than $300K but i can dream 🙂

  4. Rodrick Bossart

    Which reits do people recommend?

  5. Macey D

    Although yields have been on par with what savings accounts were pre-2008 (3-4%) i still think have a portion of them in ones collection is still a good idea.

  6. Orlando Gilpin

    What are the tax consequences of underlying US holdings? Is it different inside a registered account vs a margin account?

  7. Tracey Ring

    What kind of yields can one expect? And is it worth it for someone like me who is young or is it best for older folks who need an income?

  8. Zion

    I never really got into reit indexes because a few years back i got burned. Maybe i should have diversified my holdings. Still a bit gittery in jumping back in 🙁

  9. Rigoberto

    It's really fascinating that the US economy determines whether the REIT sector does well. We have a huge real-estate market and yet we are considered not important? Huh?

  10. Jalon Greenlees

    Truly amazing how their is stock in everything. Never realized this was another. lol!

  11. Yashon

    Yields haven't been all that impressive as of late.

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