3 REIT Plays to Buy for the Dividend Yield

After a sluggish 2013, the right REITs could soar this year

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3 REIT Plays to Buy for the Dividend Yield

Vanguard REIT ETF (VNQ)

Vanguard 3 REIT Plays to Buy for the Dividend YieldIf you’re an income investor looking to the REIT sector for dividend yield, but seeking added safety in a diversification, an exchange-traded fund (ETF) like the Vanguard REIT ETF (VNQ) might be a great play. In addition to investing in scores of individual REITs, ETFs trade over a major exchange like stocks and have low fees — VNQ has a tiny annual expense ratio of 0.10%, or $10 for every $10,000 invested.

VNQ is massive, with $33.5 billion in assets under management. Its top holdings include Simon Property Group (SPG), Public Storage (PSA), ProLogis (PLD), Equity Residential (EQR) and Ventas (VTR). 

Additionally, the REIT includes exposure to high-potential property sectors like healthcare, as well as industrial, retail and residential. VNQ is trading around $69 and is up 7% year to date. It has a current dividend yield of 4%.

As of this writing, Susan J. Aluise did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/2014/02/3-reit-plays-buy-dividend-yield/.

©2014 InvestorPlace Media, LLC

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