The quest for both safety and yield is a difficult one, and there is no holy grail, but in a high-volatility/low-interest-rate environment, the right real estate investment trust is a good option.
Here are three REITs that offer a diverse mix and are generally considered top performers in their individual sectors.
Welltower (HCN) , which invests in senior living and health care properties, has a 4.7% dividend yield.
The daily chart shows the stock making a series of higher lows above a well-defined support line but below horizontal resistance in the $75 area. The relative strength index crossed into its upper range last month, and this month the aroon indicator, which is designed to identify early shifts in trend, made a bullish green-over-red crossover. These indicators suggest a positive combination of price momentum and short-term trend direction. Chaikin money flow is well into positive territory, and accumulation/distribution is tracking higher reflecting buying interest in the stock.
An upper candle close above resistance is a long entry point using a trailing percentage stop.
Annaly Capital (NLY) is a high-yielding, currently at 11%, m-REIT -- or a REIT that invests in agency backed mortgage securities.
The stock had been moving in a horizontal channel for the last two months but broke above channel resistance in Tuesday's session on heavy volume. Moving average convergence/divergence is making a bullish crossover, and the vortex indicator, another measure of early changes in trend, is also making a positive crossover. The money flow index, a volume-weighted relative strength indication, crossed above its center line earlier in the month, and Chaikin money flow is following this week.
The stock is a long candidate at its current level, using a position size that accommodates an initial stop under channel support.
Public Storage (PSA) , a real estate investment trust that operates self-storage facilities for personal and business use, has a 2.9% yield.
The stock has been making lower highs above horizontal support but is attempting to break above the downtrend line and its 50-day moving average. Moving average convergence/divergence and stochastics are both making bullish crossovers, reflecting improving price momentum and short term trend. The money flow indicators are lagging the price action but they should improve rapidly as they incorporate recent gains in volume.
The stock is a buy after another close in upper candle range above the downtrend line, using a trailing percentage stop.