If you have been paying attention then you already know that I believe Charles Schwab ETFs are the best in the business. Also, REITS RULE! That being said, I believe that I have found a great combo of both investment vehicles. Introducing the Vanguard REIT ETF, stock ticker VNQ. Vanguard has Charles Schwab beat with this REIT ETF.
VNQ is an exchange-traded share class of Vanguard REIT Index Fund. The fund employs a passive management or indexing investment approach designed to track the performance of the MSCI US REIT Index, a benchmark of United States property trusts that covers about two-thirds of the value of the entire United States real estate investment trust (REIT) market. The Fund’s investment advisor is Vanguard Quantitative Equity Group.
VNQ pays a healthy 50 cent quarterly dividend, which is currently a 3.59% dividend yield (as of 12/14/11). It is the best REIT ETF out today. Within this ETF, Vanguard invests in stocks issued by real estate investment trusts (REITs), companies that purchase office buildings, hotels, and other real property. Their goal is to closely track the return of the MSCI US REIT Index, a gauge of real estate stocks.
If you do not want to invest your hard earned dollars into one or two REIT stocks, then why not purchase some VNQ tomorrow and hold 106 REIT stocks. Click here for a complete listing of stocks held within VNQ. VNQ offers high potential for investment income and some growth. Investing in VNQ is appropriate for helping diversify the risks of stocks and bonds in a Roth IRA portfolio.
Click here to learn more about this solid ETF and watch the video below to learn more about REITs.
Note: I am long VNQ and hold no vested interest in VNQ or Vanguard.
Simon Property Group, Inc., stock ticker SPG, is an elite real estate property company. Simon owns or has an interest in 392 retail real estate properties, including regional malls, Premium Outlets, The Mills, community/lifestyle centers and international properties comprising 263 million square feet of gross leasable area in North America, Europe and Asia. SPG is headquartered in Indianapolis, Indiana.
SPG is paying a 90 cent dividend, which is a sweet 3.02% dividend yield. SPG management has shown intelligence in the way they perform their business. They did not become the world's largest retail REIT by accident! The way the hierarchy of this company builds on it's success is calculated, intuitive and smart. Although they sometimes overpay for properties, they also bide their time to wait when the moment is right to make major decisions. SPG is America's largest mall operator. Their share price grew steadily and dependably from 2001 to 2007. It has been said that consumer discretionary markets were some of those hit hardest by the recession, however here we are again, watching as the share price has grown steadily. SPG was around $30.00 back in February 2009. Given that SPG is the largest United States company in its category, I believe that the share price will surpass its 2007 peak of just over $120.
Two notable pieces of SPG property are the King of Prussia Mall in King of Prussia, PA and the Philadelphia Premium Outlets in Limerick, PA. Both made a killing during last Christmas and are set to make more dinero this holiday season. Click here to find a mall or outlet near you.
REITS are just such a great investment for your Roth IRA stock portfolio. You must own a piece of at least one REIT to weather the storms of market fluctuation. Feel free to pick O, LTC, LRY, BDN, HCN, SNH or SPG, the list goes on and on. REITs are like finding a needle in a haystack. What is a REIT you may ask? A real estate investment trust is a tax designation for a corporate entity investing in real estate. The purpose of this designation is to reduce or eliminate corporate tax. In return, REITs are required to distribute 90% of their taxable income into the hands of investors (DIVIDENDS!). The REIT structure was designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks.
In closing, as corny as this sounds, Simon says buy this stock now and hold for life. Especially if it goes down $10.00 or $15.00 from today's closing price of $119.14. Visit this website to learn more about Simon Property Group. SPG's Investor relations page can be view here. Feel free to watch the videos below to learn more about this stable and profitable dividend payer! Have a great remainder of the week.
Brandywine Realty Trust's, stock ticker BDN, current dividend yield is a whopping 7.09%. Each share will cost you $8.46, which is 47.5% discount from it's price of $17.78 on August 15th, 2008. At that time BDN was paying a dividend of $0.44 per share. BDN was hit pretty hard during the Great Recession, but they have survived and maintained their stance in the REIT arena.
BDN is one of the largest, publicly traded, full-service, integrated real estate companies in the United States. Brandywine operates as a real estate investment trust and owns, develops and manages a primarily Class-A suburban and urban office portfolio. BDN is headquartered in Radnor, PA and maintains regional operations in Pennsylvania, Metro DC, New Jersey, Richmond, Delaware, Texas, Northern California, and Southern California.
Do the math. If you invested $5,000.00 today, you would receive about 591 shares. You would receive $88.65 of dividends in January 2012 and every three months for the rest of your life. And that's 1) without reinvesting your dividends, 2) excluding stock price increases and 3) dividend increases. Consider this. 591 shares of BDN with a dividend growth rate of 0.5% per year and a stock price growth rate of 1% per year for 30 years. At year 30, with your dividends reinvested, you would have 4,062.28 shares, $35,836.73 dividends paid and a total value of $46,321.41. And this is with modest stock and dividend growth rates. Reinvesting your dividends is what it's all about!
Feel free to visit BDN's website at http://www.brandywinerealty.com, and their Investor relations page at http://www.brandywinerealty.com/investor-relations.asp to learn more about this solid company. There is no real good reason not to include BDN in your Roth IRA stock portfolio. Each Roth IRA should include at least one REIT. There are some great ones and add BDN to that list. Real estate may never get back to the bubble height it was once a few years ago, but it will slowly improve over the years. BDN will too. Since it's a REIT the dividend will improve along with it! Watch the videos below to learn more about BDN and more reasons why I believe it is a solid REIT, especially at this reduced price.
LTC Properties, Inc., stock ticker LTC, is a health care real estate investment trust, otherwise known as REIT. These bad boys should be a cornerstone to your Roth IRA stock portfolio. LTC invests primarily in senior housing and long term care properties
through mortgage loans, property lease transactions and other investments. Its
primary senior housing and long term healthcare property types include skilled
nursing properties, assisted living properties, and independent living
properties.
LTC has investments in 30 states
leased or mortgaged to 40 different operators. Recent acquisitons include a school property located in Minnesota, two
senior housing properties located in South Carolina, and two
properties, including skilled nursing properties in Florida and Texas.
The best thing about LTC is that they pay a MONTHLY DIVIDEND of $0.14 per share, which is a current dividend yield of 6.64% (as of October 5th, 2011). I love monthly dividend payers because when I'm old and gray they will inject my portfolio with free cash on a monthly basis instead of every three months like most stocks. Keep in mind that babyboomers are aging and LTC is in a sweet spot for capitalizing on the seniors.
Click here to visit LTC's website, and here to learn more about this solid REIT. If you have some free time please review LTC's annual report, click here.
As you can see in the picture below, LTC has real estate all throughout the continental United States. I suggest investing in LTC as soon as you can so you can being to reinvest your monthly dividends. Wealth is possible with smart decisions like investing in health care REITS! Have a great day!
