{"id":39199,"date":"2013-06-21T11:54:37","date_gmt":"2013-06-21T15:54:37","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=39199"},"modified":"2013-06-21T11:54:37","modified_gmt":"2013-06-21T15:54:37","slug":"time-to-cherry-pick-the-best-dividend-growth-investments","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/06\/21\/time-to-cherry-pick-the-best-dividend-growth-investments\/","title":{"rendered":"Time to Cherry Pick the Best Dividend Growth Investments"},"content":{"rendered":"

By The Sizemore Letter<\/u><\/a> <\/p>\n

Three weeks ago, I asked if the bull market in REITs and MLPs was over<\/a>, to which I replied \u201cno.\u201d<\/p>\n

Bond yields may indeed be rising with the scaling back of the Fed\u2019s quantitative easing, but few investors in or near retirement can eke out a living on today\u2019s yields.\u00a0 Even if the current payout made ends meet, there is no margin of safety for inflation at today\u2019s levels.<\/p>\n

A well-bought REIT and MLP portfolio offers something that bonds cannot: the potential for an income stream that rises over time.<\/strong>\u00a0 REITs and MLPs also have built-in inflation protection in that their real assets and the rents that they generate should more than keep pace with general price inflation.<\/p>\n

So long as there are Baby Boomers entering retirement, there should be a decent market for REITs and MLPs trading at a decent price.\u00a0 And after today\u2019s Fed-induced bloodletting, some of my favorites are now on sale.<\/p>\n

Three weeks ago, I recommended buying shares of Realty Income ($<\/span>O<\/a>)<\/strong> and Martin Midstream ($<\/span>MMLP<\/a>)<\/strong> on any continued weakness.\u00a0 I would say that yesterday\u2019s rout qualifies as \u201cweakness.\u201d<\/p>\n

And to this list I would add National Retail Properties ($<\/span>NNN<\/a>)<\/strong>\u2014which fell a ridiculous 7.1% yesterday–and Retail Opportunities Investment Trust ($<\/span>ROIC<\/a>)<\/strong>\u2014which is down by a comparable amount over the past two days.<\/p>\n

Could more volatility be coming to this sector?<\/p>\n

Absolutely. \u00a0I don\u2019t necessarily expect it, but I certainly can\u2019t rule it out.\u00a0 This is why I recommend easing your way into these positions in stages.\u00a0 Use yesterday\u2019s bloodletting as a buying opportunity, but also keep a little powder dry in the event of another selloff.<\/p>\n

Disclosures: Sizemore Capital is long O, NNN, ROIC, and MMLP. This article first appeared on TraderPlanet<\/a>.<\/p>\n

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