Safe havens are popular in times of volatility, and the last couple of months definitely qualify. Lately, with the news scaring investors with big drops one day and large gains the next, many are turning toward companies with strong fundamentals and potential for regular income. REITs are gaining in popularity again, and cash-rich telecoms are attractive, since some of them have solid fundamentals.
Here some of the bright spots this week:
- RAS: RAIT Financial Trust has been improving its situation steadily since the real estate market crash. The yield is 7.1% with an annual dividend of 24 cents per share. The current quote is $3.39, so you could buy quite a lot if you think real estate will make a comeback, and profit handsomely if you are right.
- NRF: NorthStar Realty Finance Corporation is all about real estate debt portfolios. The yield is hefty, 12.1%, so some might be wary of this REIT. The annual dividend is 40 cents a share, and the current quote is $3.31.
- CHL: China Mobile Limited is currently yielding 4.22%. This large China telecom has the potential for strong growth as China’s middle class expands. You’re not going to get CHL for as cheap as the REITs though. Right now it’s trading at $46.60.
- T: Some think that AT&T might be worth getting into at $28.57. The company is still cash rich, and offers a yield of 6.08%.
- TEF: A large telecom providing services in Europe and Latin America, Telefonica S.A. is a Spanish multinational that has fairly solid fundamentals. The current price is $20.14, and the yield is a rather large 10.30%.
- RCI: Canadian telecom Rogers is has been struggling a little recently, but it still has cash, and solid fundamentals. The yield is 4.31%, and the current price is $34.55. Not bad.
As you can see, it can pay off to look at foreign companies as well as domestic companies. Many of these foreign companies are showing a certain amount of financial solidity.