The Best REIT to Invest in Today Will Pay You 5%

The Best REIT to Buy for 2020: Our top REIT pick could climb to five times its current price - and these shares yield a solid 7.9%, too. Get the pick now...

A million dollars just isn't what it used to be. For decades, investors believed $1 million was enough to ensure a comfortable retirement.

With that kind of money in the bank, you could generate plenty of income to pay for expenses suitable for almost every lifestyle.

That was before the financial crisis ruined the bond market.

Today, $1 million invested in "safe" government securities provides no more income than what social security provides for those living beneath the poverty line.

That's no retirement, and investors are rightly worried.

That's a big reason why I love the REIT market today.

It's the only game in town - and really the only option for investors looking for that comfortable retirement lifestyle.

With interest rates at historically low levels and likely going lower, REITs are paying attractive dividends. In fact, they pay the type of dividends that used to be available in the bond market.

While a 5% dividend won't get you all the way to easy street, it is a far cry from the 1.5% Treasury yields pay right now.

And 5% is what the best REIT available today pays investors who buy the stock now.

Sure, there are REITs that pay a far higher rate of return. But push too hard for higher rates, and there is a risk that principal will be lost.

That 5% is markedly better than most alternatives. More importantly, that level buys security - and even better, the potential for appreciation.

I can ascertain all of that without even knowing the name of the REIT.

It's simple market structure at the moment. And it's a structure that will lead us to where we want to go - higher yields without risk.

Here's my favorite for this week...

This Week's Top REIT Pays a Solid 5% Yield

[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]The pick today is Easterly Government Properties Inc. (NYSE: DEA).

This REIT pays a dividend of 4.67% today, almost double what the company paid two years ago.

The share price has gone up as well, most notably having a large rise in 2019 after stumbling in 2018. Year to date, EAD has rebounded more than 45%.

The combination of a strong dividend and share price appreciation is what attracts me most.

Easterly specializes in real estate that is used by the government. The U.S. government is the best client you can have. It pays its bills except in cases of a government shutdown, but even then, essentials like the rent still get paid.

Having the government as a tenant ensures growth at Easterly for the near future. At a minimum, the government ensures that Easterly will be paying a rich dividend in coming years.

Here's the real kicker though. The company owns buildings that are leased to the government for the use in immigration and customs enforcement.

Whatever your views, we can all agree that immigration is a growth business.

People want to come to this country, and processing more and more people coming across the border means the government will need people in offices to do the processing.

Last month, Easterly announced it was acquiring a 67,000-square-foot immigration facility. The sole tenant of the facility is the government, and it recently signed a 15-year lease.

That's plenty long to make sure the dividend at Easterly stays nice and fat.

Easterly also works with the FBI, another agency that is growing in terms of homeland security.

Analysts expect Easterly to make $0.04 per share this year and $0.05 per share next year.

Those aren't exactly stellar numbers, but they are stable.

With an election coming in 2020, Easterly is poised to do even better profit-wise on a per-share basis.

Politicians love to spend no matter who is in power, and that spending will fuel growth at Easterly for the coming years.

A 5% dividend makes the company the best REIT available today in my humble opinion.

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