This Day On The Street
Continue to site
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

REITs Offer a Compelling Anchor and Booyah!

Last but not least, was Weingarten Realty Investors (WRI - Get Report). Cramer had Drew Alexander, CEO of Weingarten, on MadMoney during the Dec. 5 show. As Cramer pointed out, Weingarten has a necessity-based platform that provides for a durable dividend record. Weingarten has a market cap of around $3.25 billion with shares trading at $26.77. The company's dividend yield is 4.33% and the year-over-year total return is 28.22%.

Forced Dividends Are the Best Dividends

The attraction to the safe havens of REIT dividends is the fact that there are no options for these companies to pay or not to pay a dividend. By law, they are forced to do so to retain their REIT status. Alternatively, non-REITs have a choice in how much to pay out in dividends. With the threat of the uncertainties in the year ahead, the non-REIT payers may likely choose to conserve cash and very possibly cut dividends in 2013 or at least not increase them.

Real estate held through a REIT offers tax efficiency and it is an investment in an income producing, hard asset. By comparison, most investors in paper based, fixed income instruments like bonds fear inflation and rising interest rates. But, for REIT investors, those factors often are not sources of fear but rather can bring rewards. Real estate actually tends to be a good inflation hedge via rising rents and asset values.

More importantly, intelligent investors should consider the anchor (the dividend) and the buoy (capital appreciation) as the fundamental ingredient for a "sleep well at night" stock. Booyah and Happy New Year!

At the time of publication the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

3 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
Only $9.95
14-Days Free
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
HTA $27.12 0.00%
MPW $14.67 0.00%
SKT $34.32 0.00%
WRI $34.36 0.00%
AAPL $130.28 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs