Rental properties have four advantages though that make them more
appealing than dividend stocks.
Not exact matches
As a result, the biggest losses went to high -
dividend companies such as utility and real estate companies whose stocks become less
appealing than bonds to investors seeking income.
The
appeal increases when you consider that
dividend - growth companies tend to be of higher quality and lower volatility
than the broader stock market.
Keep in mind that HASI's has maintained a more predictable
dividend growth profile
than the mREIT peers, so from a risk / return perspective, I consider HASI's platform more
appealing.
Whether a
dividend strategy can be expected to deliver higher returns
than the traditional Couch Potato is debatable, but I recognize the intuitive
appeal of investing for income.
The
appeal increases when you consider that
dividend - growth companies tend to be of higher quality and lower volatility
than the broader stock market.
The
appeal of this strategy is that it would be more «hands off»
than the other investment accounts and I wouldn't have to constantly reinvest the
dividends received.
Global demand for
dividend - paying exchange - traded funds (ETFs) is strong, as evidenced by robust flows of over $ 20 billion in 2016; US - based ETFs accounted for more
than half of that amount.1 The
appeal of
dividend - paying stocks is clear, as
dividends can help provide a nice offset to rising inflation, while most fixed - coupon debt can not hedge against rising prices.
That's where GlaxoSmithKline is most
appealing — those who want total returns that will roughly mirror the S&P 500 but want a starting
dividend amount that is going to be much greater
than what you'd get with an index fund that tracks the S&P 500.