Looking for Dividend Stocks to buy in September 2022 market crash? On 21st September 2022, the Federal Reserve raised benchmark interest rates by another three-quarters of a percentage point. This caused stock markets to crash.
If you are familiar with REITs, they are fundamentally based on a debt structure to fund the purchase of their properties. A higher interest rate means that their interest costs goes up. As interest costs goes up, this will eat into its distribution which means less dividend distributed to investors.
With safer financial assets such as Singapore Savings Bond and Fixed deposits offering interest rates above 3% p.a., it is no wonder investors are dumping their REITs for safer assets that offer similar yield.
Now, does not mean we should avoid REITs totally? In my opinion, I will think it is still worthy to invest in REITs. Now that prices have came down, the current dividend yield goes up which makes REITs...