Income - REIT Preferreds

[Danny]

S&P had a story in The Outlook this week about REIT preferreds as a good income source for IRAs & 401k, but not taxable accounts - IRS doesn't let you have 15% div rate on them...

They are lightly traded - so a limit order and patience is called for - and are callable.

Their selection list shows returns ranging from 6.7 - 10%.

S&P states "Preferred REITs offer higher secure returns with less likelihood of high price volatility".

Also, they will be issuing an ETF at the end of September that covers the entire preferred universe, not just REIT variety - the yield for the past 12 months would have been 5.5%.

[brewer12345]

Yes, these have juicy yields, but they are interest rate sensitive and they are usually callable. Not a bad choice, in moderation.

[mathjak107]

i use a non traded reit apple hospitality reit...pays 8% with a possible kicker at the end when property is sold....kind of like a bond on steroids