02-26-2015, 01:22 PM
(01-09-2015, 01:53 PM)Ok Red Wrote: My current port includes 5 REITs - DLR, VTR, STAG, O, OHI. I'm thinking about dabbling with an mREIT. Any suggestions?
Dabbling can work if your timing is OK. However, I suggest you read the articles by Scott Kennedy on Seeking Alpha before making a meaningful commitment.
You might also want to look at the long term results of AGNC and NLY before totally believing the typical mREIT horror stories. Since it first started trading in 2008, the dividend reinvested annualized total return of AGNC is 21.24%. SPY is 8.19%. NLY is 6.38%. However, NLY continued to pay a dividend when the yield curve last became inverted, which predates AGNC. An inverted yield curve is potentially the most destructive environment for an mREIT. If you don't know what an inverted yield curve is, you should not own an mREIT. You can learn about it here and here.
I have since found a really impressive yield curve tool here.