REITs, are typically strong dividend payers because they pay out most of their generated cash flow to investors, or "unit holders", in lieu of paying taxes. I've had several readers email me asking me to do a dividend analysis on specific MLP stocks. Since MLP's operate differently than normal stocks though, running them through my current dividend analysis (growth or income) wouldn't be valid. So I guess I need to add a MLP Dividend Analysis Template to my "to-do list". Before I do that though, it would be a good idea to educate those of you aren't familiar with this type of stock and what we should consider before investing in them.
Thursday, July 26, 2012
Tuesday, July 10, 2012
You may recall that Realty is the company I used to show the power of compounding. It has been a strong performing REIT since it became a public company, and has treated me well for the past several years I have owned it. In fact, I was lucky enough to purchase the majority of my shares in 2009 when the market was at record lows, so I'm up over 100% on my position and have been collecting monthly dividend payments along the way.
So if its been treating me so well why sell? Good question, here's why.
Thursday, July 5, 2012
Dividend-paying stocks continue to be a popular investment theme in the low rate, high volatility environment. With expectations for record low yields on traditional sources of income expected to continue for the foreseeable future, more and more investors (both large and small) are seeking out dividend payers as a critical component of their portfolios.
While some prefer to focus on evaluating the best dividend stocks, there has also been a surge in interest for dividend-focused ETFs. There are now more than 50 ETFs that specifically target dividend-paying stocks, including variations that focus on yield, consistency, and other characteristics. READ MORE