#315~ The REITpocalypse: A Dividend Expert’s Next Move

We'll stick to what people probably clicked on for the REITpocalypse.

I don't know if anyone's been calling it that.

That's the way it feels like to me, watching all the freaking REITs just going down and down and down and down and down and down.

And the businesses to me look fundamentally strong, at least the ones I'm in, which are ADC, Agree Realty, and Vicki Properties, which if you do anything reading, I love AI.

God bless it.

It'll get better.

But I was listening to a text of voice and it kept calling it Vicki Properties for V-I-C-I.

Kelly, is this REIT sell-off, the REITpocalypse, do you think it's an opportunity? And are you still buying REITs?

I am still buying REITs, but there's caveats like with anything.

But I think we have to kind of look at, there's a few reasons why REITs are doing poorly right now.

First off, if we just look at the basics, right? People go to REITs because they tend to have higher yields, but higher yields changes with time.

Now that we have the treasuries at over 5%, people are just getting out of REITs to move to treasuries.

So that is something that will affect REITs that has nothing to do with them at all.

It's this perceived risk of and I say perceived risk because, again, we're not going to get into politics, but I personally do not want to loan money to the U.S. government.

I don't think they're a risk free borrower.

So but a lot of people are moving money from REITs into treasuries just because it's a safer investment.

Is it safer though? I mean, when I hear safer and risk-free, like there's still inflation risk, right? Like that's something that I think people forget is that the dividend or the yield isn't going to grow like it could with it's, you know, probably it's not going to get cut, but it's static, right?

Yeah.

And then there's the other issue is like, okay, so this money is rotating out of REITs into let's say treasuries, right? Because we don't really know where they're going, but we do know money is going into treasuries.

Now you're missing out on a great entry price.

So and if you're compounding, right, if you're reinvesting your dividends, you've missed all of these years of that compounding growth, especially at a cheaper price.

So, I mean, that's something to be said if you're going to bounce your money around a lot to chase yield, like you could be you're missing like the fluctuations.

So I think that's the first thing to just say straight out is some of these more higher yielding stocks are just being forgotten for higher yields because that's what will happen.

The second thing is we have to think about how rates are structured.

If you wanted to go...