Yesterday, I talked about the stair step up stock trading pattern and how the REIT sector has been performing this year as one of the top sectors of the market. It’s part of the great rotation out of speculative fad popular names that went up so much last year, which typifies the ARKK ETF, and into companies that have earnings, dividends, and are linked to commodities or cyclical economic expansion.
I have about 1/3 of my money in commodity related ETF’s. Last year I talked about the DBA agriculture ETF as a key ETF in my account and it has gone up tremendously ever since. Agriculture related stocks also have had huge runs.
After having been in a bear market for over seven years commodities simply made secular lows last year in the Spring.
Yesterday, I bought two dividend paying stocks that combine the trends of REIT’s and agriculture together to pay nice dividends.
They are REIT stocks that own farmland!
The first is LAND.
LAND operates and owns farmland throughout the US and pays a 2.22% dividend. Notice how it’s relative strength plot, comparing its performance to the S&P 500 has been trending up all year strongly. In fact the stock was up yesterday when the S&P 500 and just about everything else was down in a red day. It looks like it is consolidating now with support at $23 and resistance at $25.
If you want to beat the market then you want to be in the things that are beating the market. Winning is as simple as that and is why the crypto collectible coin formula of HODL = LOSR right now.
Buy companies that do things in the real world that make money and pay dividends if you want to be a serious investor. Ignore Elon Musk tweets.
If you go to the company’s website you can click and see the farmland that they own across the United States.
The second stock is another farmland REIT just like LAND, FPI.
FPI is paying a 1.52%.
Bitcoin and Dodgecoin both pay zero.
I rather invest in farmland than crypto coins.
You can’t eat crypto coins – you can’t even hold them in your hand – but you can eat corn!
And as long as their has been human civilization people have been growing wheat, corn, and using silver as money.
In fact, silver is the first thing mentioned as money in the Bible.
Not Bitcoin.
In fact no one uses Bitcoin as money in the real world.
I’m going to go to lunch in a few hours and they won’t take it as money and there isn’t a single business in my town that will either.
BTW – FPI also has a rising relative strength plot.
These are the only two farmland REIT’s inside the United States that I can find.
Brazil has one under the ticker LND, but I don’t own it right now; just watching it for the moment.
My top stock pick of for this month also was up yesterday, showing its strength in the overall market and its sector too.
For more on it click here.
-Mike
