2 Ultra-High-Yield Real Estate Stocks to Buy Hand Over Fist and 1 to Avoid

Real estate investment trusts (REITs) have gotten crushed because of rising interest rates. That's due to a couple of factors. REITs borrow a lot of money to acquire and develop real estate. That debt has gotten a lot more expensive. Meanwhile, rising rates drive up the yields on income-producing investments like bonds and bank CDs. As a result, REIT share prices have fallen, increasing their yields to compensate investors for their higher risk profiles.

Several REITs offer very enticing dividend yields these days, including Community Healthcare Trust (NYSE: CHCT) and EPR Properties (NYSE: EPR). Their big-time yields make them stocks that income-seeking investors should buy hand over fist.

However, investors need to be careful, because not all high-yielding REITs are worth buying. Despite its lofty yield, income-focused investors should avoid Medical Properties Trust (NYSE: MPW).

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Source Fool.com