Income investors are always on the hunt for higher-dividend yields, but too often stocks with high-dividend yields can be yield traps that are at risk of being cut.
During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.
The continued strength of Global Net Lease Inc (NYSE: GNL) and Getty Realty Corp Holding Company (NYSE: GTY) is awesome to behold, especially given the uncertainty about the pace of interest rate rises by the Fed.
It’s a positive, generally, for the REIT sector that these 4 hit higher highs this week even as the big name tech and social media stocks have failed to achieve that kind of out- performance. That these real estate investment trusts are showing this kind of strength in advance of probable rate hikes by the Fed is at the very least, favorable.
Financial advisers routinely tell investors to diversify their portfolios.
It makes sense to diversify because market sectors perform differently during various cycles of the U.S. economy, and investors never know which ones will perform the best at any given time.
Income investors dream of buying stocks whose companies have solid business models and fundamentals, but because of temporary market conditions, the shares have ultra-high yields.
When markets sell off as a whole those dreams may come true, but other times dreams turn into nightmares if poor earnings cause dividends to be cut and share prices to tumble even further.
It's no wonder why so many real estate investment trusts (REITs) have terrible market performance in 2022. After all, the Federal Reserve's ongoing rate hikes will continue to hurt the real estate sector.
Global Net Lease (NYSE:GNL) reported quarterly earnings of $0.47 per share. This is a 9.3 percent increase over earnings of $0.43 per share from the same period last year.