Tip #5: Discipline.
Having discipline is important for all investors, no matter what type of investment strategy they use. Dividend investors are no different. If you believed every rumor you hear, you would probably be tempted to buy stocks that are overpriced and sell at the wrong time. Educate yourself, develop a trading strategy, and stick to it.
By the same token, I urge you not to panic about the potential impact of rising interest rates. Don't make that mistake of labeling commercial properties -- and equity REITs -- as "interest-rate-sensitive investments". REITs just aren't very sensitive to interest rates, mainly because interest rates tend to move up with a strengthening economy and down with a weakening economy. However, mortgage REITs are much more sensitive to rates since they are essentially a spread business. Don't give up on REITs too soon. Before you make big allocation changes, think calmly and carefully first.
For more information make sure to check out my monthly newsletter, The Intelligent REIT Investor.
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