For this months portfolio idea, I’m going for real estate. Many people believe your house and home is the best investment you can ever make.
Whether that is true or not has been the source of many discussions. One thing we can all agree on is that just one house is not a diversified portfolio.
If you believe in real estate you may want to look into some options for diversifying that portfolio of yours.
A REIT or Real Estate Investment Trust specializes in investing in commercial real estate. They are typically traded on a stock exchange. They may buy, sell, lease, mortgage or rent real estate in various forms. Many specialize in one type of real estate (for instance, industrial buildings).
So if you buy stocks of a REIT, you invest in a company that will manage a diversified portfolio of some form of real estate for you.
Some characteristics of a REIT:
Since REITs pay out so much of their earnings as dividend, there is usually less capital growth.
This also means that there are two clear factors to look at:
With that in mind, here are the criteria for this month’s selection:
|Symbol||Name||Current price||Dividend Yield||Payout Ratio||Dividend CAGR|
|NRZ||New Residential Investment Corp||14.06 USD||14.22%||76.10%||8.38%|
|CIM||Chimera Investment Corporation||19.02 USD||10.52%||93.68%||4.98%|
|KREF||KKR Real Estate Finance Trust Inc.||19.04 USD||9.02%||90.97%||18.58%|
|INN||Summit Hotel Properties, Inc.||11.02 USD||6.54%||88.34%||8.79%|
|BPR||Brookfield Property REIT Inc.||18.95 USD||6.28%||72.40%||3.43%|
|MPW||Medical Properties Trust, Inc.||18.75 USD||5.62%||91.31%||2.31%|
|IX||ORIX Corporation||73.15 USD||5.15%||23.75%||22.34%|
|NHI||National Health Investors, Inc.||83.14 USD||4.99%||98.59%||2.50%|
|LTC||LTC Properties, Inc.||49.01 USD||4.62%||96.74%||3.51%|
|GRP-UN||Granite Real Estate Investment Trust||47.88 USD||4.46%||44.10%||13.95%|
Thanks to Uncle Stock for selecting this diversified real estate portfolio.
My philosophy: If you want to invest and your goal is to try to beat the market, you need a system. You need a system that can decide for you what to buy, when to sell and not to panic when things go down. Everything starts with selecting stock. You should not just select random stock here and there based on whims or things you read. No, create a system that suites your style and follow it. These posts give you example of what such a stock selection could look like.Unless otherwise noted, I do all my research through the Uncle Stock screener. It's a great tool to have in your belt. (note: this is an affiliate link, if you sign up, I get a commision)
Disclaimer: Don't believe anything I say or write. Always do your own research before making any investment decisions.