REITs Help Relieve Inflation Fears

According to Nareit.com (the worldwide membership organization for real estate companies), REIT dividends have outpaced inflation as measured by the Consumer Price Index in all but two of the last twenty years. What's more, Nareit authors add, while real estate investment trusts have not proven to be the only inflation hedge, “their comparatively low correlation with other assets also makes them an excellent portfolio diversifier that can help reduce overall portfolio risk and increase returns.” To be sure, inflation is [...]

Sheaff Brock REIT, 5G, cell phone towers, real estate investing

Real Estate in Recovery Mode Plus

Portfolio Manager JR Humphreys ends every presentation with a reminder that real estate is an asset class that “has everything to offer,” including the potential for both rising dividend yields and capital appreciation. Inflation? Real estate investments serve as a hedge, Humphreys explains—as the cost to replace structures rises, the value of existing buildings goes up. Portfolio Manager JR Humphreys ends every presentation with a reminder that real estate is an asset class that “has everything to offer,” including the [...]

shopping mall as part of REITs portfolios | JR Humphreys explains

REIT Investing in the Wake of the Pandemic

“REITs and real estate owners have played an important role across the country throughout the pandemic,” writes Matthew Bechard, Editor-in-Chief of REIT Magazine, predicting that “REITs and the 516,000 properties they own and operate will play a key role in bringing America back together.” JR Humphreys, portfolio manager of the Sheaff Brock Real Estate Income & Growth Strategy, definitely agrees. There were certainly areas of real estate which were negatively, even severely, impacted by the pandemic, Humphreys admits, naming: shopping [...]

Walking Dogs | Dogs of the Dow Investment Strategy | Sheaff Brock | Bulls of the Dow

A Bullish Approach to “Dogs of the Dow”—Part Two

The well-known “Dogs of the Dow” concept focuses on choosing, out of the 30 stocks that make up the Dow Jones Industrial Average, those ten with the highest dividend yield. Based on investors’ intent to “buy low, sell high,” the guiding principle of “Dogs of the Dow” is that the dividend payout can be used as a measure of the average worth of the company, with a high yield signaling that the company is near the bottom of its [...]

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A Bullish Approach to “Dogs of the Dow”—Part One

Nearly thirty years in use, the term “Dogs of the Dow” is hardly new to investor vocabulary. The concept—out of the 30 stocks that make up the Dow Jones Industrial Average, choose the ten with the highest dividend yield. Dogs of the Dow is based on investors’ intent to “buy low, sell high.” The premise, as Investopedia explains, is that blue chip companies such as those included in the DJIA rarely alter their dividend payouts. The dividend can thus be [...]

Taking the elevator down | option overlay for returns | Sheaff Brock

Option Premiums Can Provide Additive Returns During the Elevator Ride

“Stocks often take the elevator down and the stairs up,” Sheaff Brock Managing Director Dave Gilreath comments, referring to the strong rallies following the stagnant markets in 2004–2005, 2011–2012, and 2015–2016. “The stock market often takes a breather before rallying up to a higher plateau,” Gilreath adds. With the Dow Jones “stuck” for the past year-and-a-half, he observes, it’s not unreasonable to anticipate another “stair-climbing” period. In an earlier First Trust Monday Morning Outlook report, Chief Economist Brian S. Wesbury, [...]

Sheaff Brock Refresher Course on Preferred Stock

Preferred Stock 101+

(Quick Preferred Stock “cheat sheet” coaching session for those “in the know,” but who could use a little reminder before investing): Companies raise capital by either borrowing money or by selling ownership. To accomplish that goal, they issue either debt or equity securities. As an alternative, by issuing preferred stock, a company combines the characteristics of both debt and equity. There are some advantages to a company that issues preferred securities: Issuing preferred stock as opposed to bonds keeps the [...]

two puppies | the difference between SPX and SPY | Sheaff Brock

SPY and SPX—What’s the Diff and Does the Difference Matter?

In a rather cryptic and historical intro to the subject of options, Yahoo Finance states: “When it comes to the battle of SPY versus SPX, the first may have more volume, but the second has more value.” Size comparison: The SPDR S&P 500 (NYSE symbol SPY) is, in fact, the most widely traded contract on option exchanges. The SPX S&P 500 index options have far lower trading volume, but each contract is ten times the size of a SPY. Underlying security: Underlying the [...]

Actively Sailing Showing Active Management of Portfolios | Sheaff Brock Investment Advisors

Staying Active with Preferreds

The Sheaff Brock Preferred Income portfolio is an actively managed strategy, and there are reasons why. With the two-part goal of generating income while preserving capital, Senior Portfolio Manager JR Humphreys utilizes both institutional and retail preferred shares. No question as to which side of the ongoing debate about the merits and shortcomings of active vs. passive management is exemplified in the Preferred Income portfolio. So, what is the distinction between active management and a passive approach? Passive investors buy an [...]

REIT Investing and the New Tax Law | Sheaff Brock

New Tax Law May Favor REIT Investors

The Tax Cuts and Jobs Act is set to deliver significant tax savings over the next decade, which might well help an already healthy economy, says JR Humphreys, portfolio manager of the Sheaff Brock Real Estate Income & Growth strategy. Here’s why, Humphreys continues: One of the central features of the tax bill is a 20% deduction on pass-through income. By law, REITs must distribute at least 90% of their income. And, since the REITs themselves do not pay tax [...]