This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

REITs Offer a Compelling Anchor and Booyah!

NEW YORK ( TheStreet) -- It's clear that market volatility will be a way of life in 2013: Europe with its debt problems; China's growth constantly scrutinized; as the U.S. nudges forward.

That translates into one thing: FEAR. That makes it most difficult for investors to predict where to zig or to zag, making stock selection increasingly difficult. So where do intelligent investors find the next pockets of opportunity, especially the companies that earn excess of returns over long periods of time?

REITs: The Anchor and the Buoy

Oh yes. Don't you remember? REITs payout more than at least 90% of their income to their shareholders in the form of dividends, and you pay taxes only when you decide to sell. Another key differentiator for REITs, compared with non-REITs, is total return ingredients. Remember that a non-REIT stock is anchored by capital appreciation and dividends are simply the "icing on the cake." However, REITs are just the opposite. In fact, REITs, on average, return 60% of total return in dividends -- making dividends the anchor and growth the buoy.

Speaking of Buoy. What about Mr. Booyah?

Oh yes. Jim Cramer loves REITs. I have watched many of his guests this year on CNBC's "Mad Money" and I can tell you that Mr. Booyah knows how to pick 'em. For example, Cramer interviewed Edward Aldag, CEO of Medical Properties Trust (MPW - Get Report) on Oct. 8. The Birmingham, Ala.-based health care REIT is paying a splendid 6.69% dividend yield with a year-over-year total return of a whopping 31.17%. MPW is the only pure hospital focused REIT with the $1.621 billion (market cap) REIT's shares are trading at $11.96. A solid buy!

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!
HTA $27.58 0.00%
MPW $14.84 0.00%
SKT $35.10 0.00%
WRI $35.59 0.00%
AAPL $123.25 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

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