Can You Really Get More Cash From These Dividend Stocks?
You can’t have a discussion of dividend stocks without talking about REITs. REITs are Real Estate Investment Trusts… companies that own groups of real estate properties like hotels, doctors offices, hospitals, and office buildings.
What makes a REIT special?
The REIT is special because the company is subject to a unique quirk in the tax rules… The REIT doesn’t have to pay taxes if they pay out 90% of their profits every year.
As a result, REITs have a higher than average payout ratio… and often a higher than average Dividend Yield.
Now REITs are broken into different groups based on what types of real estate they own. You’ll find Apartment REITs that own apartments. You’ll find Healthcare REITs that own hospitals and doctors offices. There are hotel REITs that own…. You guessed it, hotels. There are even mortgage REITs that buy mortgages!
So, up till now I’ve given you a list of dividend paying stocks and told you why I don’t like each one… whittling the list down to a single selection.
This section’s going to be a bit different.
I’m going to skip the Darwin – survival of the fittest – write up… and simply discuss what I like about REITs, and then declare one I think you should own!
Here’s the scoop… when I step back, I see a few things happening. The economy is getting stronger, and unemployment keeps dropping.
As a result, I think consumers will start spending more!
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Not a big stretch.
So with consumers spending more, it means more travel and vacations. Believe me, everyone needs a great vacation.
So, to keep following this logic… with travel expected to increase, you’ll see a corresponding increase in hotels being booked… as bookings increase, the hotels can increase the prices they charge for a simple hotel room.
Right now, I like the idea of the Hotel / Motel REITs. The owners of these hotels and motels will see operations improve, and as a result profits will climb. And that means you’ll see hotel REIT dividends climb… over time.
So a quick scan of the markets and you’ll see the following REITs in the market:
Host Hotels & Resorts, Inc. (HST)
Apple Hospitality REIT, Inc. (APLE)
Sunstone Hotel Investors Inc. (SHO)
LaSalle Hotel Properties (LHO)
RLJ Lodging Trust (RLJ)
Ryman Hospitality Properties, Inc. (RHP)
Diamondrock Hospitality Co. (DRH)
Pebblebrook Hotel Trust (PEB)
Xenia Hotels & Resorts, Inc. (XHR)
Chesapeake Lodging Trust (CHSP)
FelCor Lodging Trust Incorporated (FCH)
Hersha Hospitality Trust (HT)
Chatham Lodging Trust (CLDT)
Ashford Hospitality Trust, Inc. (AHT)
Ashford Hospitality Prime, Inc. (AHP)
Sotherly Hotels Inc. (SOHO)
Innsuites Hospitality Trust (IHT)
If my math is right, that’s 17 different stocks in the Hotel / Motel REIT space.
Which would you pick?
You can buy them all… if you want. But, to find out which REIT I picked… Download my free report “The Ultimate Guide to Dividend Investing.”
Not only will you get my report on the REIT I like the best, but I’ll give you some basics around the rules to dividend investing… plus a cool dozen other dividend stocks you should consider for your portfolio.
I’ll rush the report to you right away… just sign up today!