High Yield REIT Stocks

Historically, Real Estate Investment Trusts (REITs) have been a favorite asset class for income oriented investors. REITs have lost some of their glitter since the bear market of 2008 but many still offer excellent yields, with a few offering greater than 5%. This article reviews the high yielding REITs to assess if the rewards are commensurate with risks. This article is an expansion of the one I wrote about 6 months ago that considered different types of REIT funds.

The decision by the Fed to continue asset purchases should be a plus for the REITs. The recent events in Washington may also have removed tapering from the Fed's playbook and this also bodes well for REITs. Over the past 5 years, REITs have been a volatile class but they have also offered a degree of diversification. If you are interested in investing in this class, this analysis indicates that you should look at the whole REIT space, not just the high yield REITs. As we have shown, some of the lower yielding REITs have a much better risk-adjusted return than those with exceptional yields. The analysis also indicates that the exchange traded fund VNQ had relatively good risk-adjusted performance over the periods so this ETF should also be given consideration.

Source: Seeking Alpha

Related Articles:
- Warren Buffett's Secret To 50% Returns
- 9 High-Yield Energy Stocks Growing Their Dividends
- 6 Stocks With a Sustainable Dividend
- 5 Dividend Stocks Building A Growing Cash Stream
- 9 Dividend Stocks Beating The 4% Rule