Collect a 9.3% Dividend Yield From This Growing Trend

Investment U View in browser IU Plus | Courses | Conference | IU Bookstore Saturday, October 31, 2015 Chart of the Week: Collect a 9.3% Dividend Yield From This Growing Trend Ryan Fitzwater, Senior Research Analyst, The Oxford Club This week's chart is screaming opportunity. How does a chart showing the decline of U.S. homeownership create opportunity for anyone? For many, it signals the death of the "American Dream." But anyone who owns rental properties, like me, can tell you why this trend is absolutely your friend... It's because rent is going up. Way up. And today I will show you an easy way to get in on the game without putting a single dollar into a physical property... How Low Can It Go? As you can see in our chart, homeownership is at a 48-year low. You have to go back to 1967 to find another point when the homeownership rate stood at 63.4%. Back then, the average cost for a new house was $14,250. The average income per year was $7,300 and the average monthly rent was $125. Today, homeownership has become unaffordable for many young people. Student loan debt, stringent mortgage lending standards and a subpar job market are mostly to blame. And when you can't afford to buy a house, you have to rent. Shelter is a necessity, after all. As a result, the number of renters has skyrocketed. As you can see above, a record number of households are now renters. And this demand has sent the cost of rent to an all-time high. True, these numbers haven't been adjusted for inflation. But even so, the trend is clear. According to the Census Bureau, the median asking rent is now $803. If you are in the house and apartment rental industry, the last chart tells you one thing: business is booming. The good news is that everyday investors can get in on the game. And you can do it without putting big money down on a rental property. Become a Landlord Without the Deed One of the best ways to profit from all-time high rental demand is with apartment real estate trusts (REITs). REITs allow you to get in on the rental game and be paid a nice juicy dividend along the way. You see, REITs are required by law to pay at least 90% of their taxable income to shareholders. How nice are the yields? Equity Residential (NYSE: EQR) is one of the bigger apartment REITs, and yields over 2.7%. But if you are looking for some bigger payers, check out Independence Realty Trust (NYSE: IRT) or Preferred Apartment Communities (NYSE: APTS). They yield 9.34% and 6.39%, respectively. As the U.S. transitions from a nation of homeowners to a nation of renters, rental properties will be one of the best ways to profit. And for those not looking to get into the property management business, apartment REITs are your next best way to collect consistent checks. Click here to post a comment on InvestmentU.com Discover This Investing Secret From Inside This 1965 Luxury Car James Dean, Janis Joplin... even the "King of Cool" Steve McQueen drove this classic... Now, it's your turn to hop in. This story you'll hear from the passenger seat might change the way you handle your money. Enter here. We Also Recommend... How the "Sharks" on Wall Street Can Make You Unbelievably Rich by Alexander Green Friday, October 30, 2015 Too many investors focus on the stocks and bonds being traded each day without considering what those securities accomplish. Read On... Why Is the Stock Market "Tough" for Girls? by Marc Lichtenfeld Thursday, October 29, 2015 "In a house where Dad talks about stocks at the dinner table and Mom works at empowering girls, why isn't my daughter interested in the market? One reason is that she may not have enough role models." Read On... The Only Positive Sector in a Sea of Red by Bob Creed Saturday, October 24, 2015 Year to date, the market has seen a lot of red. We're looking at the only sector that's locked in a positive return through the third quarter. Read On... You are receiving this email because you subscribed to Investment U. 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