Stock Investors Hungry for Yield Shun Canadian REITs in Downturn
- Dividend yield for Canadian REITs spiked to 7.8% last week
- Market is expecting a distribution cut for REITs: BMO’s Ma
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For the longest time, Canadian real estate investment trusts were a stalwart for income investors. Now, dividend payments hang in the balance as commercial and residential tenants struggle to pay rent during a pandemic that has shut down much of the economy.
Typically seen as a place to get a high, safe payout in a world of low bond yields, REITs are one of the worst performing groups in the nation’s benchmark index since the peak on Feb. 20, plunging 38%.