REITs

Barring a collapse in real estate prices, REITs are still the best place for high dividend yields

The real reason for the decline in REIT prices is the sell-off by institutional investors. Institutions, particularly mutual funds, are said to be shedding REITs, an action which is the cause and not the effect of REIT price declines. A stock falls in price for one reason — sales of that stock. Institutions get nervous when a stock has had a long run-up and they take their money and run.

Individual investors don’t have to do that. They should buy REITs for their attractive dividend yields, not their price appreciation,

More commentary on dividends.

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