Why REITs Suck Right Now
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- เผยแพร่เมื่อ 18 ม.ค. 2025
- My Portfolio & Connect: / dividendbull
As we’re all aware, REITs are doing pretty terribly in the market right now, and they have been for a couple of months. If we take a look at the S&P United States REIT index, you can see it's down roughly 12% in less than two months. That's pretty disappointing, considering REITs were doing really well between April and November of last year. And this downward trend has stretched across every REIT sector that exists: data centers, retail, industrial, and everything in between. With late 2024 and now 2025 already appearing to be rough for this dividend-rich sector, in this video we'll figure out why REITs are struggling so hard right now and what we can expect in the new year.
REITs don't "suck right now." REITs are ON SALE right now. For smart investors, this is what is known as an OPPORTUNITY.
Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and just craving a little action. Investing is 5% intellect and 95% temperament.
I'm a 48-year-old doctor, burnt out from long hours and stress. Never invested in a retirement portfolio, fearing an economic collapse. Planning to retire soon, I wonder: If you had $1 million for safe stock investment over 4-5 years, how would you begin?
We have been in a depression since 2023, the yield curve has already uninverted, global recession indicators are flashing alarm for well over a year, and absolutely nobody could pull us out of the hell coming regardless of party
How can I communicate with him for advice
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REITs don’t suck if the dividend is high and the price is low! 😅
Buying opportunity
not yet !
@@ca_nou gaming and storage
If you want dividend income, far better investments than REITs.
@@theocratickingdom30 ?
@@ca_nou BDCs, preferred stocks, corporate bonds, some covered call ETFs, etc.
You provide valuable information for most investors, unfortunately for me (at almost 67 years old) there is less a need for a "long term investing" strategy. Instead I need a "long term distribution" strategy.
I have accumulated all the wealth that I will ever need and am now trying to learn how to efficiently "draw down" on my investments especially since "required minimum distributions "RMD"" are looming on the horizon. I have already started withdrawing from my 403B and 403B rollovers, NOT because I need the money, but because taking 30k-50k out every year will only put me into a tax bracket just 1 tier higher than baseline. If I had waited until age 73 to start my RMD it would require that I draw 90k-100k per year putting me in a tax bracket 2 tiers higher.
Not only that, but the IRMAA adjustments to my Medicare parts B and D would, because of the massive RMD if I had waited, cause my Medicare cost to increase $2640 a year (yes; the government punishes us for saving too much during our working career).
Sorry; just an old man ranting about taxes and penalties . I really enjoy your channel.
Thanks
Just picked up 100 O's on the dip
Bullish on REITs, great video! You nailed it. REITs right now offer a very compelling opportunity despite the share price being down. I can wait out the recovery, the REITs are only down becuase of market sentiment, not becuase they are bad companies.
Don't confuse REITs with BDCs. ARCC and MAIN are up near all time highs.
Good time to sell some BDCs and buy REITs.
Agreed, this is a buying opportunity. As an income investor, I like closed end funds that buy REITs, such as Cohen & Steers for US and CBRE for international. Those REIT CEFs pay monthly, income is 8% to 14%, holdings are diversified, and the fund managers have far more experience and knowledge in this sector than I’ll ever have.
But fees are so high
CEFs are actively managed. I’ve never paid a separate management fee to either an active or a passive fund. The monthly distributions they pay me is always net, so the number I care about is my total return.
In terms of REITs, these products are complicated so it’s not a good sector for passive investing. Cohen & Steers and CBRE fund managers frequently outperform retail investors. They have all the training, Wall Street connections, AI tools, and they spend 8hrs a day looking at just REITs.
@@louis20122dividends are net of fees. So a 8% dividend with 1% ER is the same as a 8% dividend with 3% ER (assuming they don’t cut dividends, of course)
@@louis20122 You can keep cash in liquidity and, when any ETF drops by 2%, move 2% of the fund into that ETF, which is a better strategy than REITs. I believe REITs are a scam.
I like RIF.
Loadin up on vici and wpc
I went in big on PCM. oh well. Enjoy your content, and thank you for your advice.
Low payout ratios, low valuations, high yields, increasing dividends, sounds good to me. Fed still says interest rates will be lowered, just more slowly. People may believe otherwise, I don't blame them, but money supply growth has reverted to the mean so inflation should eventually ebb. The fears of another 1970s inflation redux are overblown.
In Australia, nearly all of the REITs here pay a dividend yield of nearly 5% p.a. This can be a good thing if you don't want the hassle of owning investment properties. But their NAV growth is terrible.
The SPDR/Spider equivalent of Consumer Staples, Healthcare and Energy in Australia is BlackRock's IXI, IXJ and GLIN.
The price of t-bills and bonds are saying a rate cut would be suicidal.
Recommend to go with funds instead of individual stocks. The 1-year Total Return with RLTY is 23.04%, which has a monthly dividend that's currently a 8.58% dividend yield. 1-year Total Returns with the three stocks: NNN -0.28%, O 0.98%, FRT 9.54%.
Still not sure why everyone is so down on AGNC. It is, as I understand it, government backed.
Down as in not favorable or all in? I also wonder if its good to keep investing
@@blanktitle198 down as in "don't like"
Leverage. AGNC borrows money for 2% buying mortgages yielding 4%. Now what happens if rates go to 4%? Go figure.
@@dominikfrohlich6253 That's all REITs. My point here is that government backed REITs are supposedly harder to kill.
Share price has trended downward for the last 15 yrs (ish)
The editing spins this into gold ✨️ 👌
Low entry price, high yield, what's not to like.
My portfolio doesn’t just cater to dividend stocks. I hold $VFIAX (S&P 500 index fund) in my Roth IRA and $VTI (Total Stock Market ETF) in my taxable brokerage account. Two of my largest holdings. The individual dividend stock positions all complement the index holdings.
Thats when you hire someone to manage your money. You need a (CFP) straight up! personally, I would invest in ETF's and also love investing in individual stocks.
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Lisa Grace Myer” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing.. I will write her an e-mail shortly.
Hospitals arnt doing good either, office spaces needs to be converted due to a large shift online, abnb is crushing hospitality and driving the price of property into a place that is uninvestable unless hosting an airbnb which isnt the best idea because its slowly being more regulated i.e. dumping 10 billion dollars into a properties just to have half of them deemed ineligible for short term rentals by the locality
SCHD is a solid choice for dividend investors, especially in uncertain markets. With its consistent dividend growth and solid track record, it feels like a reliable long-term hold. I’m focusing on ETFs like SCHD to balance growth with stability, especially as we navigate the impacts of rising interest rates.
I agree. Even with great opportunities, we should proceed cautiously. Seeking market analysis or advice from certified market strategists is important.
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
Impressive can you share more info?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
100% right! Always invest in things before people invest in those same things.
These dividend stocks will jump once the Bear Market hits hard and/or the 7 come down to reality.
Great video!
Perfect time to be adding to my positions. I have picked up some real bargains and cut my cost basis. Raised my income by about 300 a month as well. No complaints
Don't forget taxes! Most REIT dividends are "ordinary" and not qualified, thus taxed at your marginal rate.
MAA did pretty fine in the past year 🤔 they are still way down from where they were before. The dividend growth is amazing though.
Vici got hammered as well, but it’s a HIGH quality REIT.
I love O and ADC, although I’m worried about their long term prospects given how e-commerce is gaining more and more market share and a lot of retailers/tenants are struggling (especially O).
I wonder if Alexandria can turn things around for the better…
I have held NNN for 28 years now and buy more on the dips (like 2008) I have been pleased with it as an income investment. It is a Dividend Aristocrat.
sitting with 13000 shares of mpw. cost base 4.53 lets see
I started a position in vici properties. And thank you for suggesting pffa and arcc wich I now have in my portfolio trying to get the snowball rolling.
People are only pessimistic about the Federal Reserve until they aren’t. Wanna buy low? Buy REITS.
It's only a buying opportunity if rates stop rising. I have a lot of my money in variable rate etfs like eic, which gives me insurance for rising rates. But if we get bad economy then it could fall. Risks to anything
Stoked. Love REITs and BDCs. Buying opportunity
Don’t forget mlp’s!
very little dividend growth on reits
Vici and MAA are doing fine on dividend growth 🤔
Ah, i suppose that explains why ACRE is down atm. No dividend cut yet though.
I own it and have been adding to it down in the 5s. But I wouldn’t be surprised if there was a dividend cut. A 15% yield isn’t sustainable. Either the price needs to rise because there’s a recovery in the business. Or the dividend will need to be cut because there’s business is still suffering. But I’m in it for the long run, so I will just roll with it
Just look at it as a chance (a second chance if you started last year) to acquire shares cheaply. Do look and make sure you are choosing to invest in quality.
I’ve been loading up on NTST lately. And MDV when the share price dips
I did buy 20 shares of Realty Income.
Do you have any comment on IIPR? It has been beaten up pretty badly recently
I bought more right after it dropped to the low 70's and could buy more depending on my own cash flow. I also got it before the Ex-Dividend date and received a nice payday earlier this week.
The BK of their client might take a couple months to work itself out, but now IIPR has equipment and a pre-built facility to rent to a different company. This might even help IIPR because they can diversify their client base.
@@Extortionism thanks for your comment. It had such a nice run until it crumbled
Loading up on AGNC
I'm excited about the NEOS covered call ETF, IYRI, that just launched. I wanted a broad REIT ETF, but IYR dividend is too low. I hope with the extra that NEOS brings, this will be a diversified REIT with a decent yield. Time will tell.
Anyone know the tax treatment on this? Is it ordinary income plus the 60/40 on the covered call premium?
I'm 55 years old with not enough set aside for retirement at this point. I have always been curious about the market and have witnessed people who played the game right and retired early. Some claimed they started very small, but their portfolio grew over time. I do have a significant amount but I’m unsure about which strategies or approach to take in order to achieve good returns. I'm open-minded and would appreciate any help or guidance.
I understand where you're coming from I've been in a similar situation myself. I'm 58 now, and I only started investing last year with $40,000. Within five months, I reached my first $100,000, and today, my portfolio stands at a solid $260,000. It's proof that it's never too late to start. The right investments can truly transform your life. If things continue going well, I should be able to retire soon. My only regret is not starting sooner.
How did you manage to achieve that level of growth?
Diversification did it for me. I ventured into real estate crowdfunding, stocks, and the digital market. It took around 6months. I needed to approach it from a different angle. I got my answers, and its been smooth since then. My CFA has been great, clearly my best one yet. I achieved this much with His management.
What you need is a CFA who can assist you in managing your portfolio while diversifying your investments.
Can you recommend? It is not very common to find a good one.
Robert Carlos Wright is my CFA. He's someone I can recommend. His expertise in market knowledge and asset management is truly top-notch. if you do your research you'll know for yourself that the old man's work ethic is off the charts. Google his full name you'll find his details on IAPD or SEC.
Agnc has been pretty chill I’ve been buying them for 4 years I get dips and it’s been nav positive most of the time decent returns
This channel helped me go from being a nobody to having a nice house built in Florida, with a fixed profit of $40,000 a month despite any global economic crisis
Really? How do you make so much profit in a month, please tell me more about this cause I’m looking towards investing
This is what Melissa Jonas Richard does, she has changed my life.
After raising up to 40k trading with her, I bought a new house and car here in the US and also paid for my son’s (Oscar) surgery. Glory to God.shalom.
I know Melissa Jonas Richard, and I have also had success
Another obvious SCAM promoting Melissa with bots. Ignore! She probably doesn’t exist. These are criminals.
can you do a video on MSTY?
How about RITM (Rithm Capital Corp) ? It looks like it keeps growing steadily, with a dividend of 8.88% as of right now and it has a payout ratio of 50%. Anyone who has it?
I have some and I'm about to buy some more. I was surprised to see how high it's rated on Seeking Alpha.
@@sirfriendzone1228 Good to hear! I might finally make the step and put some in my portfolio
#RITM seems to be doing well.
LFGY video when?
they are going down cause they have 1.5 trillion in debt due for commercial side buddy over next 2 years and if interest rates stay high it could create a big problem. Mreits are fine id stay far away from commercial side. I expect some sort of collapse coming if interest rates don't drop soon.
Htgc and arcc only 2 I got
Buy the dip.
Please how ?
Am a born Christian and sometimes I feel so down 😭 of myself because of low finance but I still believe God😞
It's Elizabeth Ann Hanson doing she's changed my life. A BROKER- like her is what you need.
$356K monthly is something you should feel differently about....
Lovely! I enjoyed it like I enjoy a $100k monthly around the turn!!!
I've just begun learning about value investing, and I've found that many good stocks are undervalued despite their intrinsic value. If you had $200,000 to create a strong investment portfolio, which stocks would you choose for better returns?
Feels like all money is going into tech and bitcoin
For now at least
ABB - reits on sale at the moment.
Dividends mean shit if stock falls more then the shit dividend
That is only true if the fundamentals of the company mean they're truly struggling and looking at bankruptcy. If the sector is just out of favour keeping the price low but the dividend is maintained or even grown then this is fine. O has been beaten down in share price, has increased dividend regularly. If you sell while in the red rather than taking the cash flow from dividend... only yourself to blame.
Bonds need to drop and real-estate will rebound!
That’s because people are putting that money into Bitcoin!😂😂
👍
Honestly they need to create separate interest rates. Like raise interest for some commodities like gold and silver but lower interest for real estate
IMHO, It will take DOGE minimally 2 years to put a significant dent on inflation. That gives us plenty of time to up the ante on REITs. VICI is probably the best buy for dividend investors right now.
Im buying more right now lol
Except for MAIN
MAIN is one of my best individual holdings. I've been buying shares since January 2022 and it is up 47.70% and pays me a nice monthly dividend.
MAIN is a BDC (not a REIT) and pays a nice monthly dividend. It's pricey though as it reaches its 52-week high, the yield will go inverse.
@ Thank You!
@@angakingtutubeDepends how MAIN will deploy the funds from their investors 🤔 they have a very experienced team and invest very carefully.
@@angakingtutube I miss it being $40/share. 😔
Bargin hunting time lol
Xlre is garbage
Thank you Lord Jesus for the gift of life and blessings to me and my family $14,120.47 weekly profit Our lord Jesus have lifted up my Life!!!🙏❤️❤️