Donald Trump doubled down on his trade war with China last month. U.S. investors were the first to experience the blowback from Trump’s trade war.
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Stocks fell across the board after Trump upped the ante by threatening China with more tariffs. The Dow 30, S&P 500, and NASDAQ Composite have all lost ground.
Even everyone’s favorite haven stock is trading lower amid Trump’s trade war. Berkshire Hathaway (NYSE: BRK.b) shares have lost 4% over the past 30 days.
When I find myself in roiled investment waters, like today, I instinctively reach for dividend stocks. They can serve as an immediate ballast to calm the ride.
Real estate investment trusts (REITs) have been the dividend stocks of choice for this market.
Three of my favorite REITs not only trade higher for the month, they trade higher for the year.
But they’re not trading too high.
You’ll still find dividend yields nearly four times that offered by the largest S&P 500 stocks. The fact that all three REITs pay their dividends monthly is a bonus.
Chatham Lodging Trust (NYSE: CLDT) is a leading hotel REIT that owns a portfolio of upscale extended-stay hotel properties: Residence, Homewood Suites, and Hyatt House. It owns 42 such properties in 15 states.
Chatham began paying a quarterly dividend in 2010. It switched to monthly payments in 2013. The dividend has never been lowered. It has been frequently raised.
The most recent increase lifted the monthly dividend to $0.11 per share, which generates a 6.7% yield.
Though the lowest yielding of the three, STAG Industrial (STAG) has experienced the greatest share-price appreciation. Its shares are up 21% year to date.
STAG focuses on a hot sector – single-tenant, industrial properties throughout the United States. Many serve as distribution centers. Internet sales is a growth business. Demand for STAG’s properties is on a growth trajectory.
STAG’s starting dividend yield might be lower relative to my other recommendations, but it’s still respectable at 4.8%. It’s sure to grow.
STAG faithfully increases its monthly dividend a few fractions of a cent every few months.
“Old Faithful” . . . that’s what I call Gladstone Commercial Corp. (NASDAQ: GOOD). I’ve been following Gladstone for the past eight years. It’s never let me down.
Gladstone is nothing fancy. It’s a diversified office and industrial REIT. It owns 102 properties in 24 states.
I like Gladstone because its management is exceptional at what matters – keeping the properties rented.
Occupancy has never fallen below 96%. Current occupancy stands at 98.9%. That’s a rate most REITs would die for.
Gladstone’s dividend is as steady as you’ll find. The current $0.125-per-share monthly dividend has been paid since Jan. 2008 It generates a generous 7% yield on investment.
Trump’s trade war will pass.
But don’t reflectively discard your high-yield dividend REITs. Income investments are always in demand.
You might even consider doubling down on your income opportunities.
The Mailbox Millionaire Income System is the way to do it.
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