//www.lazyportfolioetf.com/etf/vanguard-real-estate-vnq/ (2024)

FAQs

Is VNQ a buy or not? ›

VNQ's analyst rating consensus is a Moderate Buy. This is based on the ratings of 155 Wall Streets Analysts.

As of August 2024, in the previous 30 Years, the Vanguard Real Estate (VNQ) ETF obtained a 9.21% compound annual return, with a 19.55% standard deviation.

VNQ has a dividend yield of 3.60% and paid $3.56 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Jun 28, 2024.

VNQ: Great Buy Going Into 2024

The fund has a modest dividend yield of 4.3% and potential for growth due to the Federal Reserve's anticipated lowering of interest rates.

Taxed as ordinary income: Dividends from REITs are typically taxed as ordinary income, which can result in a higher tax burden for investors, especially those in higher tax brackets. Unlike qualified dividends, which are taxed at a lower rate, REIT dividends do not benefit from favorable tax treatment.

Generally, a good ROI for rental property is considered to be around 8 to 12% or higher. However, many investors aim for even higher returns. It's important to remember that ROI isn't the only factor to consider while evaluating the profitability of a rental property investment.

An ETF gives you an affordable way to follow the stock market or a particular part of the market. While REITs provide the stability and robust returns of real estate.

Luckily, there are a plethora of monthly dividend ETF funds offered by the major firms, including State Street Global Advisors, Vanguard Group, and BlackRock, Inc. However, there are also smaller firms such as the Global X Funds that have increased their presence in the ETF arena.

Do dividends get paid monthly? ›

It is far more common for dividends to be paid quarterly or annually, but some stocks and other types of investments pay dividends monthly to their shareholders. The monthly payers may more often be related to commercial or residential real estate, since those businesses run on monthly cycles (i.e. rent).

VNQ's top 3 holdings are PLD, AMT, EQIX. ETF VNQ's is holdings 155 different assets. ETF VNQ's total assets are 37.25B.

After looking at correlation patterns and historical data, it appears that returns from REITs vary during different interest rate periods, but for the most part have shown a positive correlation during increasing interest rates.

REITs are interest-rate-sensitive, which means they tend to outperform the broad market when interest rates fall and underperform when interest rates rise. During the trailing one-year period, the Morningstar US Real Estate Index returned 28%, while the Morningstar US Market Index returned 27.17%.

Realty Income Corporation - Hold

Valuation metrics show that Realty Income Corporation may be overvalued. Its Value Score of D indicates it would be a bad pick for value investors. The financial health and growth prospects of O, demonstrate its potential to underperform the market. It currently has a Growth Score of C.

Based on 5 Wall Street analysts offering 12 month price targets for Dream Industrl REIT in the last 3 months. The average price target is C$15.90 with a high forecast of C$16.50 and a low forecast of C$15.00. The average price target represents a 10.34% change from the last price of C$14.41.

The fund's risk compared to that of other funds in its peer group for the trailing three-, five- and 10-year periods is considered above average by Morningstar. The level of return is average for the trailing three years and above average for the trailing five- and 10-year periods relative to the fund's peers.

FALLING REAL YIELDS MAY SPARK REIT RALLY

With real yields appearing to have peaked in late 2023, prospects of falling interest costs and lower discount rates may provide meaningful tailwinds for the capital intensive, long-duration REIT market.