The volatility of most real estate REIT stocks is lower than the volatility of stocks on the S&P 500, with some only half as volatile as the market at large. This is because REITs tend to focus on income-producing properties such as office buildings, apartments, and shopping malls, which a...
Traditional per-share measures of stocks, like earnings per share (EPS) and price-to-earnings (P/E) ratio, are not often a reliable way to estimate the value of a real estate investment trust (REIT). Instead, REIT investors use funds from operations (FFO) or adjusted funds from operations...
However, REITs don't offer capital appreciation since REITsmust pay 90% of their incomeback to investors.1Only 10% of taxable income can be reinvested into the REIT to buy new holdings. Additionally, REIT dividends are taxed as regular income, and some REITs have high manageme...
How is the value of REIT shares typically assessed? Like all companies whose stocks are publicly traded, REIT shares are priced by the market throughout the trading day. To assess the investment value of REIT shares, analysts typically consider: Anticipated growth in earnings per share; Anticipa...
Real estate investment performance tends not to follow that of stocks or bonds, making it a great diversification tool. For investors with liquidity needs, a REIT can be a smart alternative to owning physical real estate. REITs offer a way for investors to benefit from some of the more stable...
For this reason, we created a list of nearly 80monthly dividend stocks. Just as with stocks, REIT investors have to choose whether they’d like to use forward (forecasted) funds from operations or historical (last fiscal year’s) funds from operations when calculating the P/FFO ratio. ...
"Mutual funds might be the way to go for most investors, rather than through individual stocks," says Mr. Reeder. That's because mutual funds provide investors with a diversified REIT investment. A fund will likely have some 30 or so different REIT stocks in its portfolio. There are 46 ...
The best REIT stocks are an apt choice to buy and hold for high yields and an inflation hedge. Here's how to narrow the field.
If you’re buying individual REIT stocks, you’ll need to analyze them carefully, using the tools of a professional analyst. One way to avoid this downside, however, is to buy a REIT fund, which owns many REITs andthus diversifies your exposure to any one company or sector. ...
If you’re buying individual REIT stocks, you’ll need to analyze them carefully, using the tools of a professional analyst. One way to avoid this downside, however, is to buy a REIT fund, which owns many REITs andthus diversifies your exposure to any one company or sector. ...