REIT's

[bjl584]

Does anyone invest in these? I have been researching a few of these funds lately. High risk with attractive dividend yields. It may be a good play for something in the short-term, say like a year or so. Theoretically, I could make a 19% return or more on some of these funds. Thoughts?

[disneysteve]

I've owned CSRSX for years. It has done very well for me.

[Robert742]

Are you talking about an individual REIT or a REIT fund? A 19% yield might be due to a drop in price because of deteriorating business results and an expected reduction in future dividends, so you may not get that yield going forward.

I think owning a REIT index fund or ETF is an essential part of an investing portfolio, but I have had middling results owning individual REITs. You really need to know the REIT's financials in and out before buying an individual REIT.

I have taken my lumps chasing yield during the financial crisis. Which fund or REIT are you looking at?

[Mr Nice Guy]

Do REIT funds follow the physical RE market very well? Is now a good time to get a position in a fund?

[facebookdigg123]

any suggestions on any REITS. the only ones i've looked into are nly and cim

[frito833]

I use Vanguard REIT Index fund (VGSIX). Makes up 15% of my portfolio and had a 28% return last year.

[bjl584]

Sorry, forgot I posted this.

I've been eyeing up AGNC. Higher risk REIT paying out a 20% dividend. It's a highly leveraged fund, but as long as the Fed holds down interest rates, this is a good play. I am thinking about buying some of it within my Roth to take advantage of the huge dividend tax free.

[DanielB]

Brian,

I like AGNC, too, and own a position. AGNC is not as risky as it first appears. Current ratio is very high, but the company's securities are all U.S.-government backed. When the interest rate spread does eventually close, it's true that the yield will fall, as well as the price. Even then, this should remain a good investment because of the U.S. guarantee.

[bjl584]

Brian,

I like AGNC, too, and own a position. AGNC is not as risky as it first appears. Current ratio is very high, but the company's securities are all U.S.-government backed. When the interest rate spread does eventually close, it's true that the yield will fall, as well as the price. Even then, this should remain a good investment because of the U.S. guarantee.

This is a factor that I was looking at as well. The govt. backed aspect of the mortgages makes this a safer play than some of the other REITs out there invested in commercial real estate.

[cbduckhunter1]

Check out symbol agnc a good reit that has worked for me