2 Monthly-Paying REITs For An Uncertain Market

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Interest rates remain low and stock prices remain elevated. Where can an income investor turn? Try these two monthly-paying REITs.

This is a tricky market for income investors. Despite the ongoing pandemic restrictions, the market continues to climb ever higher. Exposure to this market gives you a sense that you’re playing musical chairs, and the music has been playing for too long.

At the same time, interest rates are pathetically lowBonds are low-paying and treacherous ahead of what is likely to be a period of rising interest rates. And traditional investments in CDs and savings accounts don’t pay enough to even keep up with taxes and inflation.

Fortunately, there may be a good answer to the current environment: monthly-paying REITs.

While the market is high priced in the nose-bleed territory, some of the very best income-paying stocks on the market are still reasonably valued. REITs have vastly underperformed the market in this recovery so far. They have been neglected by investors as technology stocks dominated in the early part of the recovery and cyclical stocks drove the market over the past several months.

But times are changing. Investors are realizing the value in an expensive market. REITs are the best performing sector of the S&P 500 over the past three months, and the second-best over the past month. Now, the sector offers momentum as well as value.

Despite the current income investor conundrum, you can actually find a high monthly income from some of the very best income-producing securities on the market. Here are two of the best monthly-paying REITs.

The 2 Best Monthly-Paying REITs

Monthly-Paying REIT: Realty Income (O)

Yield 4.1%

Realty Income is one of the highest-quality and best-run REITs on the market. Cash flow from a conservative portfolio of 6,500 properties has enabled the company to amass a phenomenal track record of paying dividends—to such an extent that Realty Income actually has the audacity to refer to itself as “The Monthly Dividend Company”.

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