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Last week, Horseman Capital's Russell Clark said the level of capital flows into the United States may not keep the dollar strong. That's bad news for anyone sitting on cash or seeking ways to generate income from their money.
Clark noted that U.S. Net International Investment Position (NIIP) as a percentage of GDP sits around 50% of the GDP deficit. However, private sector deficits in China and Europe are sitting near zero.
This means almost all of the money coming out of Japan is heading to the United States.
And that is poised to send U.S. bond prices lower. Global investors will stretch every new dollar for income drawn from safe-haven assets.
Of course, these investors are ignoring the best place to obtain a solid dividend, especially in the face of low interest rates, increasing rental payments, and rising real estate prices.
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Today, I'm going to discuss one small-cap REIT that has risen sharply over the last 12 months but still remains under the radar on Wall Street.
It pays more than a 7% annual dividend that you can lock in today and ride through the balance of 2020...
A 7% Dividend REIT with Sharp Upside as Rates Fall
There are several advantages to REITs many investors overlook.
First, they generate gobs of cash from rent and other property income. They also provide distinct tax benefits that are hard to obtain anywhere else.
Third, REITs do not pay corporate income taxes. That means higher levels of cash flow are given to investors.
Combine those benefits with companies that own properties in places where prices are rising, and you have a winning recipe for outperformance...
That brings us to today's small cap REIT. It pays a 7% dividend yield and has a high probability of outperforming the broader market over the next 12 months.
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.