If you analyze high-yield REITS and REIT ETFs, some have snapped back since the COVID market correction and some have not.
With the release of the vaccine coming, here are a few possible REIT related positions that should pay big income that are still off their 52 week highs by more than 20% and up to 50%.
As a tax note, dividend payments that REIT investors receive can constitute ordinary income, capital gains, or a return on capital.
If you are looking for potential value plus some growth potential, here are some ideas.
However, remember that every ETF is priced based on income, revenue, costs, risk, pandemic impact, balance sheet, the political-legal environment and more. Workers who still have high income may want to keep these ETFs in their 401(k) or IRA to avoid undue taxes, but some retirees may want to own these stocks outright just to have the income stream.
It may be important to analyze if the REIT has investments in commercial or residential real estate or real estate in a particular city or region that suits your objectives, risk, and time horizon.
- Symbol PMT Dividend 9.70% PennyMac Mortgage Investment Trust *52 Week Range (3.50 - 23.79) Recent Price $ 16.50
- Symbol APTS Dividend 9.49% Preferred Apartment Comm., Inc. *52 Week Range (5.01 - 14.07) Recent Price $7.38
- Symbol NRZ Dividend 7.50% New Residential Investment Corp. *52 Week Range (2.91 - 17.66) Recent Price $8.33
- Symbol BRG Dividend 7.15% Bluerock Residential Growth REIT, Inc. *52 Week Range (3.79 - 12.49) Recent Price $9.25
- Symbol UMH Dividend 5.06% UMH Properties, Inc. *52 Week Range (8.63 - 16.64) Recent Price $14.23
- Symbol WSR Dividend 5.76% Whitestone REIT *52 Week Range (4.71 - 14.12) Recent Price $7.29
- Symbol SRET Dividend 12.22% Global X SuperDividend REIT ETF *52 Week Range (4.41 - 15.77) Recent Price $8.46
- Symbol ACRE Dividend 12.74% Ares Commercial Real Estate Corp. *52 Week Range (2.78 - 17.72) Recent Price $10.36
- Symbol MORT Dividend 12.11% VanEck Vectors Mort. REIT Income ETF *52 Week Range (6.80 - 25.94) Recent Price $15.23
- Symbol REM Dividend 11.16% iShares Mort. Real Estate Capped ETF *52 Week Range (13.03 - 48.39) Recent Price $28.72
Disclaimer: For any of these investments, the writer may own the position or is thinking about buying the position. Please consult with a licensed professional before making any important decision. Dividends are subject to change at any time. Tax treatment of these investments are different that a typical investment.
George Mentz JD MBA CWM Chartered Wealth Manager ® is a licensed attorney and CEO of GAFM ® global education, which is an ISO 29990 Certified professional development company operating in over 50 nations. Mentz is an award-winning author and advisory board member to several companies around the world in education, charities, and FinTech Companies.
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