動画公開日：2023-04-19 04:33:38
I love REITs (real estate investment trusts) for dividend distribution income! I’m excited to cover two REITs today that offer strong dividend yields, and well-diversified portfolios of world-class properties. Do you like investing in REITs for passive income and FIRE (financial independence retire early)? Please share in the comments below!
#dividend #stock #reit
Timestamps:
0:00 INTRODUCTION
0:12 REITs can offer everyday investors high dividend distribution yields, and immediate real estate diversification.
0:26 REIT stock 1 is Realty Income (O).
1:28 REIT stock 2 is Essex Property Trust (ESS).
1:46 Check out the pinned comment to learn more about my Patreon, especially Corner Patreon.
2:00 Fun photos from my California visit, and my mini PPC Ian meet-up with friends Sam and Mike.
2:52 Infill locations with irreplaceable land.
4:24 SEGMENT 1: REALTY INCOME (O) REIT STOCK ANALYSIS
4:39 I started buying O in 2013.
5:00 KEY: With REITS, I look at FFO (funds from operations) vs. EPS (earnings per share).
5:40 I get a Price/AFFO (adjusted funds from operations) in the 15s. This is the PE equivalent for REITs.
5:49 Why I look at FFO, AFFO, and Core FFO
7:08 Realty Income is the Monthly Dividend Company.
7:24 Distribution yield is 4.97%.
7:32 Distributions vs. Dividends (REITs are not as tax-friendly as qualified dividend stocks)
8:55 Distributions are growing by about 3% per year. Slow, utility-like growth.
9:37 REITs give investors the opportunity to own real, tangible assets.
11:15 REALTY INCOME (O) BALANCE SHEET ANALYSIS
12:50 Thoughts on accumulated depreciation
13:23 How I’m looking at “real assets”.
13:47 How leveraged is Realty Income? They look reasonably conservative at 38% (according to my calculations).
14:34 The actual Realty Income Balance Sheet
15:28 SEGMENT 2: ESSEX PROPERTY TRUST (ESS) REIT STOCK ANALYSIS
15:48 I love the apartment exposure that Essex would bring to my portfolio.
16:00 World-class, infill locations.
16:35 They are 41.4% off their 52-week high!
17:34 Their Price/Core FFO is in the 14s! It’s a little cheaper than O.
18:35 Their distribution yield is 4.34%, not as high as O.
19:09 SCREENSHOT of Essex Tax Reporting (Not tax advice, consult with your licensed tax advisor)
20:54 I like how ESS is growing their dividend distribution by 4.43% per year. This is higher than O.
21:27 The dividend “collector”.
22:23 ESSEX (ESS) BALANCE SHEET ANALYSIS: I was pleasantly surprised!
23:24 I am looking at debt service.
24:22 Surprise: I get the same leverage at Essex as I did at Realty Income!
25:04 Example of an Essex Apartment Property
26:15 Essex Earnings Report: Core FFO was up 16.2% year-over-year!
27:34 SEGMENT 3: HIGH-LEVEL THOUGHTS ON REAL ESTATE INVESTMENT TRUSTS (REITs)
28:35 What is a triple net lease?
28:58 REIT PROS AND CONS
29:09 Passive way to own real estate
30:38 Slow growth, like utilities
31:47 CLOSING NOTE: Dividends Make Sure We Don’t Go BACK
34:45 DISCLOSURE AND DISCLAIMER
DISCLOSURE: I am Realty Income (O), Starbucks (SBUX), and 3M (MMM). I own these stocks in my personal dividend stock portfolio. I may initiate a position in Essex Property Trust (ESS).
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Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. The ideas and strategies that I provide should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. My thoughts and opinions may also change from time to time as I acquire more knowledge. These are, as discussed above, solely my thoughts and opinions. I reserve the right to delete any comments for any reason (abusive in nature, contain profanity, etc.). Your continued reading/use of my YouTube Channel, blog, email newsletters, whitepapers, Excel files, and other materials constitutes your agreement with and acceptance of this disclaimer.
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