Author Archive: Khai Nguyen

In this zero point nothing yield environment, investors will scratch any post possible, attempting to unearth yield in sometimes all the wrong places.

Within my world of coverage (REITs), it’s a struggle to find attractive yields in that 5% plus range, something that used to be a lot simpler in more normal interest rate environments.

Today, the Vanguard Real Estate ETF (VNQ) yields 2.6%, double that of the S&P 500 index. It’s not BAD, but it’s not what many of us need when planning out our retirement income.

I’ve seen an adventurous retiree or two dip their toes into those REITs yielding above 6%, grasping for yield, however ignoring all the risks associated with a dividend more than double the sector average.… Read more

I love investing in stocks where I know my bad habits (Amazon ordering) help juice a company’s bottom line.

One of my favorite REITs falls into this camp.

It’s phones have been ringing off the hook to get ahold of its invaluable warehouse and industrial properties which are the backbone of all e-commerce operators.

Its shares have also helped investors DOUBLE their otherwise pedestrian returns from the Vanguard Real Estate ETF (VNQ) over the past three years.

Not only have its returns outpaced the market, but it has a habit of paying out special dividends that our retirement portfolios can certainly appreciate.… Read more

I’m someone that pays close attention to my surroundings.

My wife calls me ‘attentive,’ and I think it’s a fair assessment given my analytical background.

There’s one thing that always seems to capture my attention.

It’s those giant, bright, colorful shiny billboards that sit on top of every single highway in America.

Ask my wife, and she will tell you about the time that I nearly drove our RAV4 into a pickup truck on Interstate 93 in Boston.

We were heading back from a rural wedding in New Hampshire and only a few miles from home.

And there it was—a half-naked, dinosaur-sized photo of Anna Kournikova (the former tennis player) advertising something…maybe it was Nike or some liquor, I can’t quite remember.… Read more

I typically make a trip out to Las Vegas every couple of years, although the pandemic of late has busted those plans.

I’m a big fan of blackjack; it just always seemed like the one game at the casino I could play where my skills gave me an opportunity to win.

I was sitting at a table at the Tropicana on the Vegas strip a few years back, holed up with four other gamblers, hoping for a slow crawl to a big win at the tables.

I was playing small, only $15 per hand, but I got on a roll that seemed like it couldn’t be stopped.… Read more

The big data explosion is finally here.

We’ve gone from no phones, to flip phones, to iPhones that let you buy groceries, make a stock trade, or even watch a movie on Netflix.

We are all using our phones more often and consuming more and more data.

In fact, mobile data usage has increased by nearly 60% per year for the last fifteen years!

Source: AMT Investor Presentation

It is however the advent of new technologies that have helped improve our access to things that might have once been considered unimaginable.

Enter 5G, which is known as the ‘fifth-generation mobile network’, and the newest technological evolution which will greatly improve speeds (up to 100x), responsiveness, and the ability to connect more devices.… Read more

Investors are suffering from dividend anxiety, searching far and wide for extra income to help compensate for low yields.

Could 10%+ Yielding Mortgage REITs help calm the jitters?

The yields offered by the S&P 500 or safe government bonds are near decade lows.

Even REIT investors are getting squeezed, with the average dividend yield now at about 2.4%.

Simply put, the majority of income provided by safe bonds, high-yielding equities, or REITs may not provide the income needed to meet retirement goals.

However, I’ve found a better path to the retirement promised land. 

There is one area of the REIT market that can provide exceptional yields and in some cases more than 4x the income of the average equity REIT, and 8x that of the S&P 500.… Read more

Apartment rents are on a tear of historic proportions.

National median rents have increased by nearly quadruple the typical increase in any normal year.

And it doesn’t seem to be slowing down.

Have you tried to buy a house lately?

House prices increased by the fastest rate on record in July; simply put, renters can’t afford to buy a house right now.

And not only are renters getting priced out of the market, but they are also relocating.

Despite some return to normalcy in urban locations, many young renters have fled the big city, spurred by the ability to ‘work from anywhere’, better work opportunities, and a desire for more affordable housing.… Read more

Did you know that over 36% of US publicly traded REITS either cut or slashed their dividends during the pandemic?

This combination of dividend cuts and demand from yield-hungry investors has led to bottom-of-the-barrel yields across the industry.

The Vanguard Real Estate ETF (VNQ), which is a solid proxy for the REIT market, now pays only a 2.2% dividend yield, well below historic averages.

It shows the importance of finding high-quality, well-managed REITs that can sustain their dividend payments, even in the throes of a financial disaster.

I’m here to tell you that despite the dividend cuts, there are still plenty of attractive high-yielding REITs out there. … Read more

There is a massive desire for consumers to get back to traveling. If you’ve been to an airport lately, the only big change is that people are wearing masks; the crowds are on par with pre-pandemic levels.

And while workers are still enjoying the WFH benefits, when it comes to leisure activity, there is a huge desire to get out of the house and spend on experiences.

Although leisure travel has rebounded nicely, business-related travel has lagged behind; technology- hello Zoom (ZM) – has helped displace a lot of the expensive and often unnecessary travel expenses.

The newer wrench into the situation comes from the Delta variant, which CDC officials say is now as contagious as the Chicken Pox.… Read more

By now you’ve read the headlines about CEOs sounding the foghorn about getting employees back to the office.

“WFH doesn’t work for those who want to hustle” 
– Jamie Dimon, CEO JP Morgan

“Be back by Labor Day or “we’ll have a different kind of conversation” 
– James Gorman, CEO, Morgan Stanley

The only problem? Employees don’t want to go back to the office.

Source: HBR

So, the big question: Who wins? The employer or the employees? And how does this impact any potential investments in the Office REIT space which is right smack dab in the middle of this whole tug o’ war.… Read more