Real estate funds (REITs) are the first choice for many investors looking for additional income, especially for retirement. The appeal lies in the lower level of volatility compared to the stock market and the monthly remuneration through the distribution of quotas (dividends).
Additionally, FIIs are easy to understand for beginners in the Stock Exchange. The purchase of a brick real estate fund share can be likened to a small piece of real estate, for example. Thus, investors can increase their shares and earn higher returns.
HE UOL interviewed experts who listed 12 real estate funds that pay at least 10% dividends per year (see list at end of report).
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Additional income with dividend
For João Baptista Peixoto Neto, managing partner of Ouro Preto Investimentos, first of all, investors must distinguish between two possible forms of remuneration: through capital gains (i.e., appreciation of shares in the secondary case) or income distributed by the funds.
“You can’t judge a fund by its dividend yield alone. You have to understand what’s behind these returns and that higher returns often carry greater risks. Also, the increase in dividends is related to the fall in the price of these stocks,” says Peixoto Neto.
The expert says there are FIIs that even track the rise in inflation. This is common among CRI (Receivables Receivable) funds, also known as paper funds. It is a method of investing in debt securities. In other words, the investor gives a kind of loan to the real estate segment with the promise of receiving interest later on.
Even in the long run, such IPCA-indexed FIIs will remain attractive if there is a decline in inflation, because with lower inflation the interest rate should also decrease.
joao baptist Peixoto Neto of Ouro Preto Investimentos
The IPCA reached 10.54% in the 12 months to February as the main inflation index in Brazil. With the rise, paper FIIs have become investors’ “loves”, says Guilherme Gentile, head of analysis at investment consolidator Dividendos.me. But he doesn’t believe the script will hold up in the long run.
With the increase in Selic rate [taxa básica de juros]inflation tends to cool down and tends to approach the Central Bank target [3,5%]. We live in uncertain times, especially with the war between Russia and Ukraine. However, whether these FIIs yield high or not, they fit into any equity portfolio.
Guilherme typerelated to dividends.me
Gentile believes that paper FIIs do not become “undesirable,” even if yields fall as a result of successive increases in the underlying interest rate.
“The market lives in cycles. Paper funds have high rates of inflation, and on top of that, they can easily change their strategy. They can switch to CDI-indexed bonds instead of just buying IPCA-indexed bonds,” he says. .
Sidney Lima, analyst at Top Gain analytics company, declares that the main purpose of real estate funds is to distribute monthly dividends. This relates to the company’s ability to generate and manage cash.
“I believe it’s a repeat [dos FIIs] should continue. However, the change in quota value is worth considering, as there are funds that have paid more than 10% of dividends in recent months, even if they have a higher level of devaluation than in the last 12 months,” says Lima.
According to a Top Gain analyst, given the scenario of high inflation and high interest rates (Selic at 11.75% per year), paper funds become more advantageous than brick funds – precisely because of the close association with debt negotiations in the industry.
“It’s also interesting for the possibility of diversifying assets. In the long run, brick funds are becoming more attractive anyway,” Lima says.
But the most important thing is to diversify investments from Dividendos.me, according to Gentile.
“Investors can mingle between paper and brick funds, one will gain from inflation and a flat rate, and the other from rents and the appreciation of the ‘brick’ itself,” he says.
Check out the full list of dividend FIIs that pay over 10% per year, as recommended by experts. There are 12 different real estate funds among the 15 nominations.
Funds that give at least 10% dividend per year
Guilherme Gentile, head of analysis at Dividendos.me
- URPR11 (paper background)
- HABT11 (paper background)
- HCTR11 (paper background)
- VSLH11 (paper background)
- DEVA11 (paper background)
Sidney Lima, Top Gain analyst
- IRDM11 (paper background)
- KNIP11 (paper background)
- CPTS11 (paper background)
- MXRF11 (paper background)
- REC11 (paper background)
João Baptista Peixoto Neto, managing partner of Ouro Preto Investimentos
- SPTW11 (brick background)
- URPR11 (paper background)
- XPCM11 (brick background)
- HABT11 (paper background)
- HCTR11 (paper background)
source: Noticias
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.