NEW YORK (TheStreet) -- It's not surprising many of the large real estate investment trusts fell victim to the latest sell-off in dividend stocks triggered by rise in Treasuries. \
It's also not surprising to see the dominant index-driven large-cap REITs absorbed most of the decline in value, while the small-cap REITs managed to fly under the radar.
The tradeoff for investing in large-cap stocks can be easily traced back to the institutional buyers - led by exchange-traded funds and mutual funds -- that have a higher degree of analyst coverage and much lower risk tolerances. Conversely, the small-cap REITs lack the same Wall Street coverage and investor interest can result in shares remaining undervalued -- especially in down markets -- for extended periods of time.
So these under-analyzed small-cap REITs flying under the radar can offer better potential for growth over the long term. Due to decreased institutional support, there's a better chance that small-cap REITs will have lower valuations that result in an underestimation of a company's operational health and prospects for growth.In my Intelligent REIT Investor newsletter I offer investors two different portfolio options:
Swan Portfolio: A conservative REIT portfolio aimed to benefit the investor looking to harness the power of repeatable dividend income. Although growth is an important aspect to intelligent investing, my "sleep well at night" (aka SWAN) portfolio is rooted in principal preservation and durable and safe dividend income.
Salsa Portfolio: The second portfolio option is the Salsa portfolio and, as the name describes, it includes a few ingredients that help spice up the portfolio to deliver higher growth (than the Swan portfolio) with less focus on dividend safety and more focus on total returns.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV