Cheap Dividend Stocks to Buy in 2014

Dividend stocks (and even REITs) were having a great 2013 until May 22nd. The Dow Jones Composite All REIT index was up 16%, but then it all came crashing down. Was it justified for REITs to crash because of taper tantrum? In the last seven months, the Dow Jones Composite All REIT index lost 16%, erasing all gains from the first part of 2013. As aforementioned, REITs would be hardest hit by the interest rate hike that investors think is imminent. I don't believe more interest rate jumps are on the way. Janet Yellen, who will become the new Federal Reserve chairperson this February, said she supports "lower for longer (interest rates)."

Two REITs for 2014: National Retail Properties is a triple-net lease mortgage REIT. "Triple net" means the tenant of the property is responsible for insurance, maintenance, and property taxes. That means if anything goes wrong on the property (e.g., sewage issues), the tenant is responsible for fixing it. Realty Income Corp owns properties in the United States and Puerto Rico. It's also engaged in the triple-net lease industry. Realty Income has negotiated rent increases on most of its properties to ensure the company has room to increase dividends. Realty Income Corp has paid 520 consecutive monthly dividends. Yes, 520 straight.

Source: Daily Finance

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