Dividend Capital
Current Income
REIT Dividend Growth — an Inflation Hedge
REIT dividends can provide investors with an attractive income-producing portfolio, and potentially serve as a hedge against inflation. The chart below compares REIT dividend growth with the Consumer Price Index, the most commonly used barometer to measure the cost of goods and services. REIT dividend growth has outpaced inflation in 9 out of the 10 years from 1997 to 2007, resulting in increased purchasing power for the investor.
Sources: NAREIT® April 2008 (REIT dividends) and the U.S. Department of Labor (Consumer Price Index). Past performance is not a guarantee of future results. This material is for informational purposes only, and does not reflect the actual dividend yield of a specific investment.
REIT dividends are represented by the NAREIT Equity REIT Index, which includes all REITs that trade on the New York Stock Exchange, American Stock Exchange and NASDAQ National Market list, and is considered representative of the equity REIT market. Companies included in this index must pay 90% of their taxable income to shareholders in the form of dividends. There is no guarantee that shareholders of a REIT or real estate mutual fund will receive dividend distributions from such investments. Investors cannot invest directly into any index.
REITs offered through Dividend Capital are non-traded REITs not listed on an exchange and should not be compared to REITs listed on an exchange.
The Consumer Price Index is an indicator of inflation that measures the change in the cost of a fixed basket of products and services, including housing, electricity, food and transportation.
Investing in real estate entails certain risks, including changes in: the economy, supply and demand, laws, tenant turnover, interest rates (including periods of high interest rates), availability of mortgage funds, operating expenses and cost of insurance.