Updated: October 27, 2015
Last Thursday, Janet Yellen told investors the same thing she always says. They, in turn, took the news as they usually do. They panicked and sold everything.
The S&P 500 finished Friday down 1.6%. The Dow dropped 1.8%. And the Nasdaq fell 1.4% – but Real Estate Investment Trusts (REITs) held up well. As a sector, they finished the day unchanged, while my favorite subset immediately rallied (more on this shortly).
REITs themselves usually pay higher dividends than regular stocks, as they can avoid income taxes if they pay out most of their earnings to their investors. These higher payout ratios have boosted their popularity with investors since interest rates went to zero in 2008.… Read more