Mid-Cap Dividend Growth Stocks By Sector - Part 2C: REITs And Real Estate Management

<< Read Part 1: 10 Mid-Size Stocks For Large-Size Gains

<< Read Part 2A: Mid-Cap Dividend Growth Stocks By Sector: Regional Banks

<< Read Part 2B: 9 Fairly Valued Mid-Cap Consumer Discretionary Dividend Growth Stocks 

Introduction

This is the final installment in my series of articles on fairly valued mid-cap selections. My inspiration to produce these articles was at the request and suggestion from regular readers who were frustrated at the lack of coverage and/or articles on mid-caps. To accommodate those requests, I screened through the S&P 400 mid-cap index with the assumption that it represented a credible universe of high-quality mid-caps. The fact that I was only reviewing the S&P 400 index was missed based on many comments received on my previous articles in this series. In other words, I only included fairly valued research candidates that are members of the S&P 400 index in this series.

As I was reviewing this universe of mid-cap stocks, it became quite clear that there were more differences between individual mid-cap companies than there were similarities. Therefore, I organized the mid-cap research candidates into a series based on various industries and sectors. In part 1, I focused primarily on mid-cap stocks for growth.  In part 2 I turned my focus towards dividend paying mid-caps. However, I broke part 2 into parts 2A and part 2B where I covered regional banks and Consumer Discretionary dividend growth stocks.  In this final part 2C in this article series, I am presenting REITs and real estate oriented mid-caps.

Furthermore, it’s important to point out that my primary objective was to present a group of apparently fairly valued mid-caps based on a cursory screen. Therefore, I left it up to the reader to conduct their own comprehensive research and due diligence on any of these research candidates that appeal to them. To clarify further, throughout this series I am not suggesting that these are the best mid-cap stocks to invest in. Instead, I endeavor to present mid-cap selections from the S&P 400 index that currently appear attractively valued.

To summarize, just as it is with every other equity class, there are many different types of mid-size companies with each possessing different features and characteristics. For example, the mid-cap universe contains many intriguing growth opportunities. On the other hand, the mid-cap universe also contains dividend-paying companies of all categories. Investors can find high-yielding mid-caps, moderate-yielding above-average growing mid-caps, and everything in between. Simply stated, not all mid-caps are the same. The real estate oriented research candidates presented below come in all the flavors mentioned above.

Real Estate Investments and the Liquidity Factor

The two most dominant forms or choices for equity investors are stocks and real estate. Equity investing is also referred to as ownership versus investing in debt instruments often referred to as loaner-ship. In other words, equity investors position themselves as owners of the asset they are investing in. In contrast, investing in debt instruments is mostly associated with a guaranteed or consistent income stream in the form of interest payments. However, debt instruments typically do not afford the opportunity to participate in growth or gain in excess of your original investment. On the other hand, although equity investing implies participating in potential gains, it is also more exposed to participating in potential losses. These factors represent the primary difference between equity investing versus debt investing.

In regards to the two major equity classes, real estate or stocks, the primary differentiator has traditionally been liquidity. Common stocks are publicly traded on stock exchanges and therefore readily liquid. In contrast, real estate typically requires a significant effort and time in order to complete a sale.  In other words, real estate is generally not considered a liquid investment class. 

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Disclosure:  Long OHI

Disclaimer: The opinions in this document are for informational and educational purposes only ...

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