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

Three Rs for Risk Control: Retirement, Recession and REITs

Due to the fact that health care is a needs-based industry, economic cycles have little effect on demand. As the U.S. population ages and life expectancy increases, demand for assisted living and skilled nursing facilities is expected to grow.

Some of my favorite health care REITs include Medical Office Properties Trust (MPW), Omega Healthcare Investors (OHI), Healthcare Trust of America (HTA) and Ventas (VTR).

Another choice sector is the triple-net sector. Although the stand-alone class does not have the growth of the apartment and hospitality sectors, the contractually long-term leases make the triple-net sector more durable and dependable. In fact, during the Great Recession, three triple-net REITs not only paid dividends but all three of them actually increased.

Realty Income (O), National Retail Properties (NNN) and W.P. Carey (WPC) were all stalwart dividend champions as they continued their amazing track record of dividend performance.

Another sector I really like is self-storage. This is not a sexy sector and in fact it's downright boring. But remember, we Americans store stuff. Lots of it. The average house size today is getting smaller and there isn't enough room to store grannies armoire or Uncle Bob's treasure trunk.

One of my favorite picks is Extra Space Storage (EXR). This Salt Lake City REIT has around 720 storage properties and it due to the highly fragmented component of the storage industry, Extra Space has plenty of room to grow its brand.

Finally, not all retail is gonna die. If you don't believe me, ask my five kids. The big malls are unique because you just can't go throw up a $100 million mall anymore. That makes REITs like Taubman Centers (TCO) and Simon Property Group (SPG) irreplaceable.

I also like certain necessity-based REITs like Regency Centers (REG), Weingarten Realty Investors (WRI), Excel Trust (EXR) and Retail Opportunity Investment Corp (ROIC).

Last but not least, who can't like Tanger Factory Outlets (SKT)-- the only "pure play" outlet center REIT with an incredible track record for paying and increased dividends for 20 years in a row. That is what I call a "crown jewel."

Remember what Ben Graham said: "It is the consistency in the products that creates consistency in a company's profits. Consistency and durability are attributes for competitive advantage."
2 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
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
SYM TRADE IT LAST %CHG
AAPL $112.92 2.94%
FB $89.73 2.91%
GOOG $637.61 1.43%
TSLA $242.99 8.07%
YHOO $33.69 3.60%

Markets

Chart of I:DJI
DOW 16,654.77 +369.26 2.27%
S&P 500 1,987.66 +47.15 2.43%
NASDAQ 4,812.7080 +115.1720 2.45%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs