Saturday, August 18, 2018
High yield stocks come out of a range of different business sectors. You may be aware of business development companies (BDCs), real estate investment trusts (REITs), and master limited partnerships—MLPs. Also, on high yield investor radars will be closed-end funds (CEFs) and leveraged ETFs. For an attractive yield combined with a high level of safety, […]
Back in April I added TPG Real Estate Finance Trust (NYSE: TRTX) to the Dividend Hunter recommendations list. TRTX is a finance REIT focused on commercial mortgage transition loans. The commercial loan REITs are especially attractive with interest rates on the rise. Background TPG is a private equity firm with $79 billion under management. The […]
In the IPO world, new biotech or consumer tech stocks get all the attention. The financial news keeps close track of how much a new tech IPO climbs the first few days after a public market launch. This makes great news bites, but it is hard for individual investors to participate. IPOs in the high-yield […]
When interest rates start to go up, investors worry about the value of their higher yield dividend stocks. A defense against higher interest rates is to own dividend stocks that will grow the dividend payments. The challenge is to know in advance which stocks will make a higher dividend announcement before the rest of the […]
Individual real estate investment trusts (REITs) fall into one of two distinct categories. Equity REITs own commercial properties, including apartments, hotels, offices, industrial properties, and even prisons. Finance REITs operate on the lending side of real estate, either by making residential or commercial mortgages or owning a portfolio of mortgage backed securities. Finance REITs can […]
There is a general misconception that rising interest rates are always bad for real estate investment trust (REIT) values. However, history shows that REITs have outperformed 75% of the time during the last 16 periods of rising interest rates. One reason is that quality REITs will grow their dividends, and if the dividend increases keep […]
For an investor trying to build wealth, the massive amount of news coming out of the financial media can be contradictory and confusing. Investors sometimes don’t realize that there are two sides to every stock trade. The seller doesn’t want to own the shares for a range or reasons, and the buyer does so with […]
The U.S. home building industry faces a Jekyll and Hyde situation. The good news is that the home construction industry has built much fewer houses over the last decade than are needed by a growing population and new household formations. At the same time builders face headwinds from rising material costs, labor costs, and higher […]
After a decade of zero percent short term rates and 2.0 to 2.5% long term Treasury rates, the interest rate yield curve has started to make dramatic shifts. The financial news coverage seems to shift daily between the dangers of a flat yield curve and the dangers of a rising yield on the 10-year Treasury. […]
Earnings season reports from the retail/mall REITs are making it clear that the news media focus on the death of brick and mortar could fall into the “fake news” category. The retail REIT first quarter results show that traditional store selling is doing well. I also uncovered an interesting item which shows that the Internet […]
