The prevailing wisdom on Wall Street is that recessions follow massive interest rate hikes, as high-interest rates slow down sales of real estate, automobiles and credit card spending on nonessential retail goods.
Every so often an investor comes across two stocks that are both high-quality performers and also pay solid dividends. Then the most difficult part is figuring out which one is the better buy.
One of the most popular types of real estate investment trusts (REITs) is the retail REIT. Retail REITs purchase, own and lease commercial space to retail outlets. One reason for the popularity of retail REITs is they frequently lease properties to well-known companies, such as The Home Depot, Lowe’s, Dollar Tree, CVS Pharmacy, Walgreens and 7-Eleven Inc.
If you’re a serious real estate investment trust (REIT) investor, dividend hikes are like music to your ears. If you already own the stocks that are announcing increases, you’ll receive more money each month or quarter and have the satisfaction of knowing that your annual yield, based on your purchase price, is also rising.
Although the all-items index increased 7.7% for the twelve months ending October, this was the smallest 12-month increase since the period ending January 2022.
Meanwhile, food inflation increased by 0.6% in October to 10.9% unadjusted year-over-year.
Using data gathered from Sept. 30, 2019, SP Global reported that over a 10-year period, real estate investment trusts (REITs) dealing with the retail industry had an average annual return of 10.1%.