On Sale: Monthly Pay 6.7% Yield, Rare Discount From RQI

In late 2019, REITs were getting expensive and we trimmed some positions. In 20/20 hindsight, that was a great call.
Today, we are opportunistically taking advantage of value opportunities in the REIT space.
This premium CEF has gone on sale. We explain why we are buying.
The dividend is paid on a monthly basis, ideal for income investors!
Co-produced with Beyond Saving
Last October, we wrote an article noting that the REIT sector was getting overvalued. Companies with a REIT tax structure are frequent favorites of ours because they fit in well with our Income Method. There's a lot to love about REITs because they provide significant amounts of cash flow, and partly through tradition, partly through tax law requirements, the majority of that cash flow is passed along to investors as dividends.
There are many ways to gain exposure to the REIT sector, for individual picks, we have focused on "deep value" like mall REITs where even very high-quality landlords like Macerich (MAC) yield over 12%, REITs trading at a steep discount to NAV like the 7% yielding Cedar Realty Trust (CDR), and core holding like the 7.7% yielding Iron Mountain (IRM), or the 6.3% yielding EPR Properties (EPR).
There are many other REITs that we like, but they have yields that are entirely too low for our objectives. American Tower (AMT), Prologis (PLD), Equinix (EQIX) and others are all very high-quality REITs with fantastic track records, impeccable management, and strong balance sheets. Unfortunately, they also yield a pitiful 1.5%-2.5%. For portfolios geared toward providing significant levels of income, that makes these companies a non-starter.
So how do you gain exposure to these great companies without sacrificing yield? One way is to go with a CEF (closed-end-fund) that invests in these companies. CEFs are actively managed and will provide much higher levels of income.
Best-in-Class Property REIT CEF Yielding 6.7%
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