02-10-2014, 01:49 PM
(02-10-2014, 09:38 AM)hendi_alex Wrote: A person should probably make a significant distinction between property REITs and Mortgage REITs. Mortgage REITs, IMO, represent a category where a conservative investor can allocate 10% or even more exposure toward long term dividend growth investing. Mortgage REITs however are very cyclical, with the downside often representing total disaster for any longs. The companies don't just suffer during the down period, there are usually a flood of the companies which go broke. IMO Mortgage REITs are speculative and are not suitable for the conservative investor.
Then again, those dividends are very nice when they stop carving into them. Makes for nice supplemental income with a smallish allocation.
