My 3 favorite dividend growth REIT ETFs
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- เผยแพร่เมื่อ 14 ต.ค. 2024
- Investing in real estate investment trust (REIT) ETFs with M1 Finance as a beginner investor made simple.
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#Dividend #Growth #Investing
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Just found your channel and I love how you do your breakdowns! I always think it's super interesting to hear people's thought processes on why they choose certain stocks/REITs/etc
I love this about the investing community on youtube! I just noticed your channel as well! Thanks for watchig!
I have STOR, O, and VNQ. VQN is the main part of the real estate pie. The pie is doing really well so far.
These are really great REIT and REIT ETFs!
Believe me you want to think twice about owning a rental property. I have had 5 different tenants, had problems with 3 of the 5. My first tenant was sneaking other family members onto the property to move in. My second had a son that was peeing in his room onto the floor and I did not find out until they left. With my third we started noticing more and more bugs/pests and then came to find out that they lived like slobs with dishes of food left all over the place in addition they had a kiddie pool filled with water in the living room. Moral of the story? Invest in a reit:)
benedit71 that sounds like a nightmare! I’ve heard both sides. My parents have owned rental properties for over 30 years. They have had similar things happen to what you mentioned. They have also had tenants stay for 15 years and take really good care of the property. REITs would be better for most people I think.
@@DividendGrowthInvesting Yes, good points, I have also had good tenants and I do everything I can to try and keep them.
We discovered a dead guy in one of our apartments. i still have nighmares about that. kiddie pool inside? perhaps an iq check on tenants is now needed
First time seeing one of your videos. Immediately subscribed. Good content. Love REIT videos. Thanks
Hey Eric! Welcome! So great to see other like minded Dividend investors here in youtube! Cheers from Austin, TX!
Hi, watching you from Brazil . And enjoying it!
Cheers from texas!
Great video! Very informative, clear and concise! I’m just getting into investing into ETFs and I’m very excited! Cheers
Jamil Ramsey Williams thanks for watching!!
Hi Jake,
what is the best site to compare ETF? It seems Google and Yahoo show different output. I compared VOO and SCHD and per GOOGLE VOO was the winner in 5 yr and MAX. Also, I compared VOO with VONE (1000) and VTHR (3000) and all three performed similar. In such case why not to diversify with at least 1000 stocks like VONE ?
Thank you as always!
I really like etf.com and seekingalpha.com
Very informative, easy to understand, great channel. I have now subscribed. I'm looking to use M1 to build passive income over time as well. I for sure will be using one of these REITS as one of my four dividend ETFs I plan to buy into. Thanks a bunch!
so glad you liked it!! I love M1!
Would it be a bad idea to invest in more than 1 real estate etf and also invest in actual reit stocks too
What do you think of some combination of VNQ and the IShares? 80/20?
I think they are both great ETFs and that type of mix could work very well.
I'm really close to starting my first pie on M1. The only thing I'm confused about are:
Should you wait till the market is down to get into an ETF?
How do you properly diversify across all sectors if you're waiting for value stocks? Does it takes time to get to proper diversity?
Does M1 allow you to add a new stock without adding more money?
Thank you! : )
Hi, I'm happy to answer them.
Should you wait till the market is down to get into an ETF?
I don't try to time the market. I dollar cost average into the market in up days and on down days.
How do you properly diversify across all sectors if you're waiting for value stocks? Does it takes time to get to proper diversity?
You can invest in a low fee index fund that covers the entire stock market. I like VTI and VOO.
Does M1 allow you to add a new stock without adding more money?
Yes, M1 will automatically invest into your underweight holdings based on your target allocation regardless of how many companies you hold in your portfolio/ pies.
I hope this helps
Dividend Growth Investing This was so helpful. Subbed for life. 🙏🏻
Good informational vid, thanks. You have a great speaking voice, kinda like Joseph Carlson. :)
Thanks GenEx! Joe definitely has ninja like editing skills... I am working on making every video just a little better! Thanks for the support!
Just let it ride. I like M1. Got a slice of REITs myself. VNQ is solid. Thanks for sharing.
Great to have you stop by! Congrats on the massive growth of your channel! It feels like I blinked and you doubled to 2k!
How do you find the CAGR?
Love youre videos 💪
Hey Tommi! So glad you like them! Go to seekingalpha.com and type in the ticker you want to look up in the search bar. Then go under dividends then under dividend growth. Cheers from Austin Texas!
@@DividendGrowthInvesting thanks!
New subscriber here. I am also a DGI investor. Could you explain more about the level of growth we should be looking for vs. our time horizon? I.e. what 5-year CAGR is best for someone wanting to invest in a certain dividend stock for 20 years?
Welcome! My favorite duo is Jinx and Lulu :) Ultimately it comes down to your preference and individual situation/goals. If you plan to live off of dividends (not sell your individual shares) and have 20 years for the stock/ETF to compound, I would look for something with around a 10% CAGR. This is good balance between aggressive/conservative in my opinion when looking at it in the term of 20 years. I use seekingalpha.com to view the CAGR of stocks and ETFs. I personally really like looking at the 10 year CAGR because it currently still includes the market when we were coming out of a recession. My personal sweet spot is between 7-15% CAGR. Take a look at ticker HON on seekingalpha.com under the tab dividends and then dividend growth. HON is a perfect example of a great dividend growth stock. Cheers from Austin TX!
@@DividendGrowthInvesting thanks for the thorough reply. i indeed started a position in HON last month so it looks like im getting the hang of DGI already. is your time horizon similar to mine? or will you be waiting 30 years to dip into dividends?
@@GengoSenmon I am seeking FIRE in the next 15-20 years. I love companies that grow their dividend around 7-15% a year.
@@DividendGrowthInvesting I tried looking up Jinx as a ticker to research, could not find...?
@@gigid9606 Hey Gigi! Jinx is a character in the game League of Legends from GengoSenmon's profile picture. Jinx is not an individual ticker. haha sorry for the confusion!
What is your thoughts on FREL ETF?
Have you compared VNQ with FREL?
Hi Robert! Not in a video here on youtube. I think FREL is a great REIT ETF. I really like the low expense ratio and the % of the top 10 holdings.
Hi man, did you make a decision on which to get?
As for me, I am buying FREL for my Roth IRA (Fidelity) while I'm buying VNQ on the wife's Roth IRA (Vanguard).
Not that account locations matter but it helps me remember which funds are where.
Why are the yields so low on REIT ETFs and so much higher on many individual REITs? The ETF's are mostly 2%-3%, barely outrunning inflation compared to individual REITs, many of which have 5%-7% or more in dividend income. Do the ETFs not need to pay out as much and therefore offer more growth than individual REITs? Are there any REIT ETFs that offer more in dividends over growth for those in retirement who seek the diversification of an ETF coupled with income over growth?
A lot of REITs focus on growth sectors like cell towers or data centers which tend to trade at higher PE/FFO ratios. Value REITs like OHI and MPW are trading at really strong ratios
Good Video, I think VNQ and VNQI is all you need. The other 2 funds assets are too low and the performance since inception is just okay.
benedit71 I don’t think you could go wrong at all with that approach.
What do you think of Slate Grocery?
How u been ? I am thinking about adding FAST and CE to my IRA.. i like both stocks because they are about 20 billions small cap company, good PE ratio, and have more room to grow.. i dont see alot of people have CE stock.. i think CE material stock will do well for another 5 years..
Hey Sky! I am doing well. I recently closed on my first rental property last week! Things have been very busy! When it comes to small cap stocks, I am a fan of going with ETFs (e.g. VB). I think CE is a great dividend growth stock to look into! They have grown their dividend for the last 10 years. CE did not grow their dividend but also they did not cut their dividend during the financial crisis. They are growing their dividend extremely fast and have a very low payout ratio. The low payout ratio is important, because it seems like they have a lot of debt. FAST is also a great dividend growth company. I personally do not own either, but both of these companies fit into the profile of dividend growth companies that I invest in!
Yea you mentioned you are closing on the property on your last video. very nice investment for you. 👍
What do you think of Real Estate ETF FREL ??
FREL is a very good alternative to USRT, SCHH, and VNQ.
What do you think of EPR which currently yields a 19.95% dividend, do you think the dividend is safe?
I currently own EPR in my portfolio. They will very very likely cut their dividend. I would consider keeping it even if they cut it. They are exposed to leisure/discretionary real estate like entertainment.
@@DividendGrowthInvesting Thanks for the advice, what about O and if you have heard about GEO and Riocan, in regards to how safe their dividends are.
@@imotionmedia7400 I don't own GEO or Riocan in my portfolio, so I couldn't speak to them. When it comes to O, I think it really depends on how long this goes on. They have a very diverse portfolio. For example, they own buildings occupied by Walgreens and CVS. I drove by both today and saw their parking lots full. I think the dividend of O is safe in 2020. It will depend how the virus evolves in 2021. The management of O is so focused on shareholders (which is great for investors) and they just recently became a dividend aristocrat (25 years of consecutive growth) this year... If they were to cut their dividend in 2021... I would likely hold on to them. This is merely my opinion.
omg I saw this last year, and saved it to my files for investing. Then I took the plunge, and boy am i sorry. My Reits have NOT come back pre covid and the money is just sitting there, not only did I lose, I am worried about how long it will take just to get back up to where it was. At least it pays dividends. Ouch!!!
That is one of the big reasons I like REIT ETFs is the risk is much lower than with individual REITs. I feel very comfortable averaging down into these three REIT ETFs.
how much are you down?
cool! this is super similar to Joseph Carlson’s channel: thumbnails, platform, investment style (dividend growth), asset allocation, and video style. keep it up!
Thanks for watching! I am a huge fan of Joe. I have watched Joe back when he first started posting on youtube. A lot of my content was and is inspired by Joe among others. We have similar backgrounds so our opinions on investing are very in sync. Cheers from Austin, TX!
If vnq has a yield on par with schd what's the point?
Senior housing REITs have a good future IMHO. With lower interest rate prospects over the next couple of years, housing REITs in general look promising.
Eric Perkins I agree! I’m a big fan of the REIT health care sector.
Any you recommend?
VNQ is such a gem, I wish I found this company earlier
VNQ is not a company is it? Its a ETF is it not?
@@AsDfler12Yes its a Vanguard ETF
Thanks for sharing your journey love the transparency
Looking into starting a Roth IRA, and looking into putting REITS and covered call ETF in there..... Thoughts and opinions 😂
Be very selective with what covered call ETF you put in a Roth IRA. You can get a lot higher total returns with owning just the index over the long-term.
@@DividendGrowthInvesting Thank you would have to look into that
*Man! investing in real estate without the repair work and dealing with tenants, and cleaning* 🏡
How cool 😎
it is great! There are a lot of benefits to investing into physical property, but I also really enjoy investing in REITs! Cheers from Austin, TX!
Dividend Growth Investing Ayyy cheers from Houston, TX
Same feeling. Just sold my single rental property with my last tenant being a total nightmare having to formally evict her, repair and sell the property after 10 years of being a landlord feels so good to no longer have to deal with the landlord headaches. Now it's time to invest the proceeds. I'm trying to determine between high yield mixed etf's vs REITs.
Great overview and review on your investment strategy! 👍
Thanks Tom! Hope you have a great Sunday!
Tenho em carteira. Um abraço do Brasil.
What do you think of O REIT?
I think O is a great REIT. O is my favorite retail REIT.
How are u taxes in America for investment in stocks?
The taxes on dividends are handled differently depending on a person's situation (and account they hold the invests in). I made a video on this that you can check out: th-cam.com/video/ivVNMKEA90s/w-d-xo.html
Dividend all the way and passive income. I just noticed all my friends are your friends for that reason. I am joining your house and bell on
Welcome to the family Victor! Cheers from Austin, TX!
Thank you!
Thanks for watching!!
You have 43 holdings. Isn't that too many?
Nice!
Here in Germany I pay the same tax rate for REITs.
Yeah we call that ordinary income in the US. Gruesse aus Texas!
@@DividendGrowthInvesting Income taxes are much higher than capital gains taxes. So I just have to pay 25% capital gains tax for REITs and all other stocks.
hello friend great video