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Strategies & Market Trends : Dividend investing for retirement

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chowder
To: wilywilly who wrote (17679)12/1/2013 5:04:15 PM
From: Max Fletcher1 Recommendation  Read Replies (2) of 34328
 
"Is taper priced into the REITS?"

In his most recent Morningstar Dividend newsletter, Josh Peters comments that O and other high-quality interest-rate sensitive stocks are attractively priced even assuming a normalized interest rate environment. He surmises they may lag as interest rates rise, but are nonetheless worth holding for their relatively secure income and limited downside in the event of a recession.

My hunch is there could be further share price weakness/downside, as markets tend to over-react, but I plan to gradually add to my positions in O, HCP, and VTR and I would enjoy seeing them stay weak for an extended period, even years. In the case of O, as an example, a ~5.6% yield that will probably keep pace with inflation with modest risk meets my financial needs.
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