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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