Dividend REITs — Retail Opportunity Investments (ROIC)
Dividend yield: 4.1%
The last retirement REIT on the list is another young REIT, Retail Opportunity Investments (ROIC). ROIC has a simple enough business model: The company buys neighborhood shopping centers, generally anchored by a “necessity-based” retailer such as a major grocery store. The REIT currently owns and operates fifty-one shopping centers encompassing approximately 5.5 million square feet.
There is a lot to be said for buying small, relatively new REITs. Unlike some of their larger peers, which overextended themselves during the bubble years of the mid 2000s, younger REITs have a fresh balance sheet. They have no “legacy” properties that are carried at unrealistic values, and they have comparatively low levels of debt.
ROIC has raised its dividend 8 times since going public in 2010, and it sports an attractive 4.1% dividend yield. Given the conservative nature of its real estate portfolio, I would consider ROIC a solid contender for a retirement REIT portfolio.
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Charles Lewis Sizemore, CFA, is the editor of Macro Trend Investor and chief investment officer of the investment firm Sizemore Capital Management. As of this writing, he was long O, NNN, HTA, ROIC. Click here to receive his FREE weekly e-letter covering top market insights, trends, and the best stocks and ETFs to profit from today’s best global value plays.