By: Dividend Sensei
Our yield-starved world has created a minefield for income investors including dangerous yield traps like mREITs, BDCs, CEFs, ETNs, and low-quality dividend stocks.
This mREIT is a case study in why mREITs are not suitable for most retirees, including a rapidly crashing dividend, -4% CAGR growth consensus, and just 3% inflation-adjusted long-term consensus return potential.
This other yield trap is one of the lowest quality dividend champions and has generated negative real returns over the last 29 years, despite a 47-year dividend growth streak.
While analysts are highly bullish about its growth in the future, historically 50% margins of error and negative growth for over 20 years, make it a potential value/yield trap to avoid.
In contrast, these two blue-chips represent high-yield aristocrats trading at attractive or even anti-bubble valuations.
This 4.8% yielding dividend aristocrat is trading at 8.9x 2023 patent cliff trough earnings, and the other yields a very safe 6.6%, and management is guiding for 13+% CAGR long-term total returns, courtesy of a $10+ trillion long-term growth opportunity in green energy.