Thank you, Janet Yellen, for postponing the inevitable. The Fed’s minutes from its July meeting, which were released this week, noting that “Most [Fed officials] judged that the conditions for policy firming had not yet been achieved” due in part to a lack of confidence that inflation will come close to the Fed’s 2% target. The market took this as a sign that a September rate hike is now less likely … and so we get to do this little song and dance again leading up to the December meeting.
Sigh…. Bond prices, and by proxy the prices of REITs and other high-yield stocks, have been in a state of suspended animation, waiting for “liftoff” from 0% interest rates. Alas, we might have to wait another few months. But in the meantime, I consider this a good opportunity to load up on high-quality REITs. REIT prices have spent most of 2015 in free fall, but if you’re looking for a nice combination of dividend yield and growth, it’s hard to beat REITs at today’s prices. So with no further ado, let’s jump into five bargain REITs to snap up on any additional dips: Ventas, Inc (VTR), Realty Income (O), Vereit (VER), Digital Realty (DLR) and Stag Industrial (STAG).