Mizuho analysts spent August picking real estate investment trusts. Office buildings. Retail properties. Both offer attractive yields, which is what you call dividends when you need the sentence to sound more complicated than it is.
The firm sees upside ahead. Not upside now. Not upside yesterday. Upside ahead, which could mean next week or never, depending on how generous you feel about the word ahead.
An office REIT made the list. People work in offices sometimes. When they do, landlords collect rent. When they don't, Mizuho still publishes reports about attractive yields. The system works.
A retail REIT also made the cut. Stores exist. Customers visit them or don't. Either way, some analyst in a climate-controlled room decided the yield looks attractive enough to type into a Bloomberg terminal and call it research.
The word attractive appears twice in a single sentence summary. Once for the picks. Once for the yields. That is how you know someone got paid to write this. They used the same adjective twice because the English language ran out of ways to describe a dividend that exists.
Retail traders will read this headline and think Mizuho knows something they don't. Mizuho knows two things. One, REITs pay distributions. Two, people will click on a headline if you say the distributions are attractive and put a month in the title.
August is almost over. These are the picks for August. By the time you read this, September exists. The picks do not update automatically. You are holding a map from last month, wondering why the upside ahead has not arrived yet.
Somewhere, a portfolio manager is rotating into office exposure because a firm named after a Japanese bank said the yield looks attractive, and that is somehow more compelling than looking at a chart or checking if people actually go to offices anymore.
Photo by bady abbas on Unsplash
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