This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Farley: Five REITs With Solid Foundations

It's still risky to place aggressive bets on a recovery in the residential- and commercial-building segments, but one related group is perking up nicely this summer. Real Estate Investment Trusts (REITs) have come off deep lows in recent months, with many grinding out bullish basing patterns and setting up for major breakouts later this year.

As we know, this was an extremely hot group during the real-estate bubble. It turned south along with construction stocks in early 2007, but has held up much better in the last year-and-a-half. This resilience is paying off now, with capital reentering the sector at a healthy pace in hopes the dark days has finally past.



The great variety of REITs makes them an attractive choice for investors seeking exposure to this bear-market group, but also wanting to avoid the most dangerous segments, like residential construction. The hefty dividends commonly paid by these issues also help to alleviate the anxiety of ownership.

I've scanned my databases and uncovered five REITs with excellent price patterns. None of today's list is tied to residential construction, even though I'm pleasantly surprised by the recent performance of this sub-group. It just makes sense to stick with strongest sector components, given all the economic uncertainties.

Digital Realty Trust
Click here for larger image.
Source: eSignal

Digital Realty Trust (DLR - Get Report), paying a 2.90% dividend, is a northern California company focusing on technology-related real estate. It rallied to a new high at 42.86 in May 2007 and then pulled back. The stock found support in the low 30s, rallying back to resistance in November and May of this year.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BPO $20.52 0.00%
DLR $65.87 0.41%
HCN $76.68 -0.05%
PCL $43.30 0.83%
VTR $72.91 -0.16%

Markets

DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs