Updated: March 4, 2016
Income investors, specifically those invested in stable Real Estate Investment Trusts (REITs), have been able to ignore most of the recent market mayhem. These issues have little exposure to energy prices, and China. Typically, they’re a pure U.S. economic play with stable income streams.
Plus, they’re pretty cheap right now. The Vanguard REIT Index Fund (VNQ) is paying its highest yield this decade (4.1%).
I’ve been a strong advocate of REITs since they became “too cheap” in mid-2015. After all, they’re legally required to pass along at least 90% of their earnings to shareholders. It’s a solid formula for market-beating dividend yields.
Lately, the office REIT group caught my eye. They’ve been overlooked as other segments like housing, storage, and malls have moved strongly.