Jefferies’s final four REITs are a buy for investors

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Jefferies’s final four REITs are a buy for investors

Final four is an eye-popping term, and it will signal maximum excitement for fans of the NCAA Men's Division 1 Basketball Tournament, when we see which teams win games among the elite eight on March 26.

A team of analysts at Jefferies have narrowed down a group of 76 publicly traded real-estate investment trusts to its final four if you are an income-seeking investor who doesn't want to risk dividends during a long period of market turmoil that might be followed by a recession. Petersen expects to continue doing so over the next three years because of the companies with good records for increasing payouts.

A REIT is a company that owns property, or invests in mortgage-backed securities, and distributes 90% of its earnings to shareholders as dividends in exchange for tax advantages. The dividends received by investors are taxed as ordinary income. There are two broad types of REITs. An equity REIT holds property and rents it out. A mortgage REIT can invest in mortgage-backed securities or as a lender. Peterson said that only 22 of the 76 publicly traded U.S. REITs that have existed for at least 15 years have been able to avoid cutting their dividends because of the narrowing of an elite eight of REITs to the final four. He noted that the list of stalwart dividend payers isn't heavily weighted to one subsector, and added that the key to selecting the best performers for the next 15 years boils down to the quality and durability of its current dividend. Jefferies narrowed the list to companies with solid dividends for its elite eight REITs before narrowing its final four to its final four that it rates a buy and is on the firm's conviction list. Here are the Jefferies elite eight REIT stocks, with the final four bolded and topping the list. The group is sorted by current dividend yield. The right column shows Jefferies' expected compound annual growth rates CAGR for dividends from 2022 to 2025. If you are interested in any individual stock, it is best to do your own research and form your own opinion about how successful a company is going to be over the next decade at least. Tomi Kilgore has a detailed guide to the wealth of information available for free on the MarketWatch quote page. Don t miss: 10 U.S. banks that have been the best earnings performers over the past 15 years - are any bargain stocks now?