If you’re looking for a solid investment that will protect your portfolio from excessive volatility and generate income, you may want to jump into real estate investment trusts, or REITs.
Some of the leading REITs provide exposure to offices, apartment buildings, warehouses, hospitals, shopping centers and hotels, or a combination of all. All while paying out high attractive yields.
Also, according to analysts at ICR, as noted by Forbes.com, REITs are expected to produce a total return of 9.5% this year. That being said, here are some of the top high-yielding stocks you may want to consider especially with rocky markets.
iShares Core US REIT ETF
With an expense ratio of 0.08%, the iShares Core US REIT ETF (USRT) yields 3.14%. It offers exposure to 133 holdings, including diversified REITs and other real estate holdings across multiple property sectors. Some of its top holdings include Prologis REIT, Welltower, Equinix REIT, Simon Property, Digital Realty Trust and Realty Income REIT.
It also just paid a dividend of just over 42 cents on September 19. Before that, it paid a dividend of just over 37 cents on June 20.
Invesco KBW Premium Yield Equity REIT ETF
With a yield of about 8.14%, the Invesco KBW Premium Yield Equity REIT ETF (KBWY) invests at least 90% of its total assets in the securities of small and mid-cap equity REITs that trade in the U.S. and carry respectable yields. Some of its top holdings include Global Net Lease, Service Properties Trust, Global Medical REIT, Gladstone Commercial, EPR Properties and Omega Healthcare to name a few.
It also has an expense ratio of 0.35% and just paid a monthly dividend of just over 12 cents on October 24. Before that, it paid a dividend of just over 12 cents on September 26.
Jon “Doctor J” Najarian has used the CPR strategy for many, many years – a strategy he himself discovered and then popularized. In fact, it’s become somewhat famous and was one of the main topics the instructors of the Chicago Board Options Exchange (C.B.O.E.) taught at their seminars around the country!
The name ‘CPR’ is short for Current Portfolio Repair. Using the CPR strategy is first and foremost designed to “repair” a stock position. That’s right, just like a carpenter can repair a broken chair back to new, or like a doctor can set and cast a broken bone and have it ‘repaired’ one day – the CPR strategy can literally repair a damaged stock.
And the best part is this: it can help get you back to even on a stock, without the stock ever having to fully recover to the original price where you bought it! But, as good as it sounds, there are limits. For example, you couldn’t use CPR on a stock like Enron that nearly lost 98% of its value. No, the CPR works instead on stocks that have taken hits of 20, 30, 40, and even up to 50%. That’s not bad wouldn’t you say?!
I have had a few subscribers ask how the list is compiled and what it means when a stock candidate is either added or removed from the list.
During the week, 100s of charts are sorted through and watched each day. They are grouped based on what it is taking place; some are in the early stages of forming P3 squeezes, and others are forming P3½ patterns. I try to list them ahead of a Sweet Spot confirmation buy signal. Remember that often one pattern leads to the next.
So, as a P3 is playing out, I have it on my radar as a possible P3½. This said, because a symbol gets dropped from the list doesn't mean that you should exit a trade on that symbol. Or, if it should appear on the P3 list, when you are in a P3½ trade on that symbol, it doesn't mean you should close your short trade. Close your trade when it gives exit signals.
This Week’s Additions:
Watch your charts closely. In the current market, many moves are happening in a shorter term than the daily on which ITM is based. Many traders are using the ITM strategy on shorter-term charts.
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