This Dividend Stock Bit Off More Than It Could Chew -- Should You Sell or Hold?
There are really only a couple of ways for real estate investment trusts (REITs) to grow. They can build properties, buy properties, or buy a peer. Industrial Logistics Properties (NASDAQ: ILPT) recently bought a peer, looking to increase its scale and diversification. What dividend investors got, however, was a huge dividend cut. Here's what happened, why, and why you might want to look at other alternatives.
REITs are intended to give small investors the opportunity to benefit from the income that institutional-level properties create. The expectation of most dividend investors in the sector is that these stocks will largely be a snooze, providing slow and steady dividend growth. There are some REITs that focus more on growth than yield, but even in such situations the story is generally low-risk in nature. Owning property and collecting rent payments each month just isn't that complicated, and it's better for everyone if these businesses are not all that exciting.
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Source Fool.com
