As we head into the second half of 2022, analysts are turning bearish on REITs as the Fed raises interest rates and tightens monetary policy. During periods of inverse correlation, such as in 2004, 2013 and 2016, interest rates began to rise while the value of REITs decreased.
A long-standing tenet of investing holds that the greater the risk, the greater the reward. But every investor has a different tolerance for accepting risk. One measure of a stock’s risk is its beta, or how it compares with the entire stock market. A beta of 1.0 is said to be on par with the general market.
Some real estate investment trusts (REITs) are hitting new year-to-date lows as the effects of Fed Chair Jerome Powell’s hawkish remarks at this year’s Jackson Hole, Wyoming, retreat sink in.
As high returns are harder to come by today than in the past two years, investing in dividend stocks that pay distributions monthly is a big advantage, as most firms tend to pay dividends quarterly.
Orchid Island Capital Corp. (NYSE: ORC) is a finance company that acquires, invests in and offers financing from U.S. residential mortgage-backed securities (MBS).
A rising inflation rate has been a drag on the U.S. stock market for much of 2022. The Fed’s recent moves to curb inflation by raising interest rates multiple times may have kept inflation from growing much worse.
Between inflation worries and recession signals, the stock market is currently acting volatile. Some analysts, like Katie Stockton of Fairlead Strategies, have recently noted that stocks are in the beginning stage of a bear market cycle.
What if it was possible to make 10%, 20% or more in annual dividend income on a real estate investment trust (REIT) stock? Does the idea of a double-digit dividend yield conjure up images of a new sports car, yacht or mansion? Well, not so fast. REIT stocks with double-digit dividend yields are among the highest risks on the market.