Income Investing

In 1999, traders and everyone else seemed to believe that the Internet would change the world and any company with a website would be able to profit from that new reality. These stocks had so much potential that traditional valuation techniques didn’t… Read More

Income investors can find attractive high-yields in the pharmaceutical sector right now. Many major drug makers, including familiar names like Merck (NYSE: MRK), Johnson & Johnson (NYSE: JNJ) and Bristol Myers Squibb (NYSE: BMY), are yielding close to 4% or better. But with so many stocks in this segment, deciding… Read More

I just finished watching the first presidential debate, and like about 50 million other Americans, I’m left a little disappointed and wanting more details about the candidates’ plans. Each candidate talked a good game and promised to turn the struggling economy around,… Read More

If you’re a commercial real estate enthusiast, then you know the real estate investment trust (REIT) sector has been hot. Even with a simple index fund like Vanguard’s REIT Index ETF (NYSE: VNQ), you could’ve made nearly 23% annually on the sector during the past three years, including fund expenses.#-ad_banner-# Many individual REITS have done even better. General Growth Properties Inc. (NYSE: GGP), a large rental property… Read More

If you’re a commercial real estate enthusiast, then you know the real estate investment trust (REIT) sector has been hot. Even with a simple index fund like Vanguard’s REIT Index ETF (NYSE: VNQ), you could’ve made nearly 23% annually on the sector during the past three years, including fund expenses.#-ad_banner-# Many individual REITS have done even better. General Growth Properties Inc. (NYSE: GGP), a large rental property and shopping center owner, for instance, has delivered an astounding three-year annualized return of 64%. Extra Space Storage Inc. (NYSE: EXR), the nation’s second-largest owner and operator of storage facilities, has returned 51% a year for the past three years. That’s wonderful, and it’s exactly the sort of performance we all hope for. But it also means you should be extra careful about generally sky-high REIT valuations. The MSCI U.S. REIT Index, a commonly used proxy for the entire U.S. commercial real estate industry and the benchmark… Read More

With interest rates at historic lows, retirees and other income investors are more likely than ever to fall into a dangerous trap — chasing higher-risk dividend stocks to earn more income. This doesn’t only occur among do-it-yourself investors. I’ve seen professionals succumb… Read More