REITs Continue to Have Positive Outlook

REITs continue to be one of the sector-to-watch with a longer term time horizon. In December we published a report similar to this one about the opportunities in the Real Estate sector relative to the dividend and long term growth. So far it has panned out nicely relative to both. The dividend has dropped to 3.2% as a result of the rise in index by more than 10%.

In March the sector tested move higher retracing nearly 3%. As you can see on the chart below since that test the sector has continued to trade sideways establishing a trading range of 552-571. A break through top side of the range is worth our attention for a further move to the upside.

Real Estate Index

There are more than 290 REITs that make up the sector/index. Filtering them for the leaders would be a task, but using TC 2000 Software from Worden allows us to scan and develop a leaders list based on the criteria we want relative to the opportunity going forward. In other words we have the ability to develop our own strategy or approach to the sector and then filter/scan for the best opportunities. One such scan I looked at over the weekend was the leadership off the March 26th low to present.

The result of the scan is posted below for the top 27 performing REITs during this period. 

worden

We could then sort the list by top dividend REITs from the top performing list and we would find OAKS @ 13.9% and in a trading range pattern. HTS @ 10.1% and hitting against resistance at the $19.75 level. ANH @ 10.3% and breaking above the previous high at $5.38. The point is simple to understand. We can define our strategy and then scan, sort or filter to what meets our criteria looking forward.

The more we can focus our trading and investing to define what we are looking for relative to the sector and the story driving the sector up or down we can have greater confidence we will have to accomplish our objective. For more Sectors-to-Watch follow the link to today’s update.