Exchange Traded REITs.

[James W.]

Hi,

I want to understand what happens if a REIT pays 8% dividend, but then its price drops by 15% in the same year, because its traded on public exchange?

This is not a fictional scenario. These are Starwood (STWD) numbers in 2015. And its not a one off, there are so many such examples of REITs and stocks in general.

I wonder whats the point of investing in Dividend assets when their price wipes out all dividend gains.

I am unable to invest beyond Fixed Income Funds because of this paradox. May be I misunderstand this.

Can someone explain this to me?

[Eric Adobo]

Prices don't always go down. 

Your fixed income funds will go down if interest rates go up.