I've been doing a lot of reading lately about these type of investments. They offer very high yields. What attracts me to some is the monthly income stream. I am looking at PSEC and ARR right now. Also, DX a high quality mREIT, is a Dividend Challenger but since I've been watching it, it has gone up nearly 10%.
I've been looking at these because the market keeps grinding up and up thereby making it difficult to find undervalued entry points in dividend growth stocks. These are not the type of equities though that one can just buy and hold with minimum oversight.
I'm thinking of pulling the trigger on Raytheon (set to raise dividend soon, low payout ratio, high dividend growth rate) as a dividend growth addition to our portfolio but also have some other money to invest. I'm debating whether to wait for a drop and enter into a dividend growth stock position or to give one of these other issues like PSEC a whirl.
It's been a long time since fear has taken over the market and provided good buying opportunities. Should we be patient and wait or try out a high yield issue? Do you think Helicopter Ben's QE will continue to send the market higher? What do you all think?
I love real estate investment trusts. Thats real estate investment trusts that invest in brick and mortar real estate. When investing in reits not only do you receive a nice dividend payout but you have the value of the real estate that the trust owns increasing in value over time and because rents will increase over time the dividend payouts should also increase over time. A reit should provide some excellent protection against inflation because the real estate that the trust owns is a hard asset.
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