CubeSmart

CUBE

Market cap $8.82B

Not all REIT dividends are sustainable. Overleverage, troubled assets, and high payout ratios are clear red flags. I highlight 3 popular REITs at high risk of cutting their dividend.

Ronald A. Homer Steps Down as Chair, Jair Lynch Elected as New Board Chair Ronald A. Homer Steps Down as Chair, Jair Lynch Elected as New Board Chair

On CNBC's “Mad Money Lightning Round,” Jim Cramer said Sony (NYSE: SONY) is a “buy,” adding that the stock is “undervalued.”

Ronald A. Homer Steps Down as Chair, Jair Lynch Elected as New Board Chair Ronald A. Homer Steps Down as Chair, Jair Lynch Elected as New Board Chair

Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either DiamondRock Hospitality (DRH) or CubeSmart (CUBE). But which of these two stocks is more attractive to value investors?

I increased my forward projected dividend income by $86.77 (1.4%) in December, reaching $6,289.66. My portfolio strategy blends high-growth names like Broadcom (AVGO), Microsoft, and Visa with high-yielders such as SPYI and MPLX. Dividend reinvestments and increases, especially from AVGO and EPRT, drove nearly 83% of new forward income this month.

REITs are priced at generationally low valuations. But potentially not for much longer. I explain why and highlight some of my top picks.

U.S. equity markets climbed to fresh record highs in the Christmas-shortened trading week, buoyed by surprisingly solid GDP data, positive holiday spending trends, and a pullback in global interest rates. The delayed GDP report released this week showed a modest reacceleration in U.S. economic growth in the third-quarter to the strongest pace in two years alongside a cooler-than-expected inflation reading. Precious metals stole the show. Gold, silver, and platinum extended a historic rally fueled by a combination of easing rates, central-bank buying, end-market demand, and investor appetite for hard assets.

Chevron (CVX) is expected to extend its dividend growth streak to 39 years, but with a muted 3–4% increase amid lower oil prices. CVX's earnings remain under pressure from declining oil prices despite cost-saving initiatives and the Hess acquisition, leading to subdued dividend growth. Dividend increases in January will generally be modest, with select companies like Fastenal, S&P Global, and Cincinnati Financial likely to deliver higher single-digit boosts.

Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either DiamondRock Hospitality (DRH) or CubeSmart (CUBE). But which of these two stocks presents investors with the better value opportunity right now?