Real Estate Investment Trusts (REITs) are presenting opportunity
as some of the largest commercial real estate companies have raised
their dividends. Related exchange traded funds (ETFs) are a good
way to access this segment of the market. REIT investment and the
ETFs that hold them are a good diversification tool for investors
as they offer a low correlation to other asset classes, moving in
different directions than bonds and other types of stocks.
Roger Friedman for The Motley Fool reports that
these investments potentially offer a way to capitalize on the
REIT ETFs Quietly Storm The Markets
Three companies to watch, according to The Motely Fool,
- Anworth Mortgage Asset (
- Chimera Investment (
- Annaly Capital Management (
Overall, the industry for REITs is half a century old this year,
and to celebrate, many landlords are giving the gift of larger
A.D. Pruitt for The Wall Street Journal reports
the higher payouts reflect the higher rents and better occupancy
levels, which are boosting the income pool for dividends. Since the
beginning of the year, 37 REITs have raised dividends; seven have
cut dividends. This is a turn around for the industry as last year
61 cut or suspended their payouts.[
Signs Of Strength In Commercial REIT ETFs
Remember that although conditions are looking more fertile for
growth, there is a way to go to get back to any highs seen in 2005
or 2006, when dividend increases reached 104 and 100, respectively.
However, the outlook is looking much better for the long term.
SPDR Dow Jones REIT (NYSEArca: RWR)
First Trust S&P REIT (NYSEArca: FRI)
iShares FTSE NAREIT Industrial/Office (NYSEArca:
Tisha Guerrero contributed to this article.