That didn’t take long.
In just two days of trading in early October, investors sold stocks with a ferociousness that wiped out the entirety of September’s gains. Of course, they rebounded again Friday with the Dow up over 300 points for the day.
And today’s top REIT is a must-buy as stocks remain volatile.
The action should have been obvious to anyone paying attention to the markets over the last two years.
Since peaking in early January of 2018, we have gone down and up and down again.
This stock just received one of the biggest “Buy” signals shares can get – and it pays a 6.6% dividend yield. Click here to get the pick.
Rinse, wash, and repeat.
How many times will we ride this roller coaster?
The latest round of selling reminds us of the inherent risks of owning stocks.
While the financial powers that be, mainly global central banks, race to stay ahead of pending contraction in the United States, Wall Street beckons at exactly the wrong time.
The ISM survey of manufacturing activity suggests a recession is around the corner. If so, earnings are going to be hit in coming quarters. Perhaps even as soon as next quarter.
Stock valuations are already high. With a recession, there is only one way for stocks to go…
And yet, investors have seemingly few alternatives but to buy stocks.
Just watch the pundits try to spin current market weakness into a buying opportunity.
The risk/reward for stocks at the moment is not in our favor, but there are pockets of opportunity.
With the volatility of stocks, bond prices jumped again last week. That’s pushing interest rates lower again.
Those in need of yield are in desperate shape.
You Can Make a Killing in the “VIP” Market: The open market can only do so much – the real wealth is built in the private sector. Now you can tap into life-changing windfalls before they potentially go public. Click here to see how…
Right now, REITs offer a very attractive income option without much risk.
The sweet spots in the market today are stocks that offer high-dividend yields and appreciation.
You just don’t find that combination in many places. But the top REIT we’ll show you today is the perfect example.
Why REITs haven’t entirely exploded higher this year is beyond me.
Thankfully, that leaves us with plenty of REITs to choose from when looking for a stock to buy today.
Here’s the top REIT to buy this week ahead of more volatility…
This Is the Top REIT to Buy Now
My favorite right now is National Health Investors Inc. (NYSE: NHI).
This health sector REIT primarily invests in assisted living facilities and other medical facilities that cater to specialty care.
Talk about a demographic that will keep National Health in the money for the next decade or more.
While some REITs pay dividends closer to 10%, National Health pays a dividend of 5% today.
Don’t be discouraged. That yield is still significantly higher than what the bond market is paying today.
More importantly, those 10% REITs entail significantly greater risk.
At 5%, it is safe to say that investors in National Health can rely on that rate for many years.
Analysts expect National Health to make $3.64 per share in profits this year. Next year, that number grows by 4% to $3.79 in 2020.
Don’t focus on the 4% profit growth. Instead, what matters is the consistency in profit.
That’s what investors in REITs today are looking for. They want to know that they will be paid the dividend yield that is promised.
Having consistent earnings over time is a rare proposition for many stocks.
As for the growth of National Health, investors today will be rewarded as interest rates continue to fall.
It is a simple matter of supply and demand.
More and more investors are going to see REITs as the only alternative for yield.
That additional buying is what will propel shares of National Health higher.
At current prices, National Health trades for 23 times current year estimated earnings.
To the extent yields decrease, we can expect that number to jump to 40 times earnings.
As long as yields stay low, which is likely, buyers will be flocking to REITs like National Health.
Plus, National Health has an aging demographic that will keep its properties full of patients and residents.
Full capacity will keep coffers full at National Health, ensuring that the dividend will be paid.
This stock is poised to rocket higher…
America’s Favorite “Shark” Debuts Summit for Finding Unicorn Startups
Angel investing is taking the world by storm.
Everyday people from coast to coast are now backing little-known startups long before they IPO, and they’re exploding in value, becoming worth billions upon billions of dollars.
But when you’re in the position to have all of these exciting deals at your fingertips, you need a way to determine which could be winners – and which are nothing more than hype.
About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.To get full access to all Money Morning content, click here.
Disclaimer: © 2019 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.
Source: Money Morning