Core Viewpoint - Real estate investment trusts (REITs) are highlighted as attractive options for dividend investors, with three specific REITs—Prologis, Realty Income, and Simon Property Group—recommended for their high yields and growth potential [1]. Group 1: Prologis - Prologis has a dividend yield of 3.8%, which is above the S&P 500's 1.3% yield and slightly below the average REIT yield of around 4% [2]. - The company is the largest industrial REIT, with a global portfolio of warehouses in key distribution hubs, and has seen a 10% year-over-year growth in adjusted funds from operations in Q1 2025 [4]. - Prologis has a history of over 10% annualized dividend increases over the past decade, making it an attractive option despite current tariff-related concerns [5]. Group 2: Realty Income - Realty Income offers a 5.6% yield, significantly higher than both the market and average REIT yields, indicating a favorable buying opportunity [6]. - The REIT primarily owns single-tenant properties in the U.S. and Europe, with tenants covering most property-level costs, and has diversified into debt investments and institutional services [7][8]. - Realty Income has increased its dividend annually for three decades, providing a reliable income stream with slow and steady growth [9]. Group 3: Simon Property Group - Simon Property Group has a dividend yield of 5.2% and focuses on high-performing retail properties, including enclosed malls and factory outlet centers [10]. - The company has a history of dividend cuts during economic downturns but has consistently returned to a growth trajectory post-recession, reflecting consumer behavior [11]. - The focus on high-quality properties positions Simon favorably as lower-quality malls decline, making it a potentially rewarding investment for those willing to accept some cyclicality [12]. Group 4: Summary of Investment Opportunities - Each of the three REITs presents unique investment merits: Prologis for its strong dividend growth, Realty Income for its reliable income, and Simon for its high-quality retail assets [13].

Market Reactions - Markets are showing resilience to tariff news, indicating a shift in investor sentiment compared to previous months when volatility was high at the slightest hint of trade tensions [2][3] - The current market behavior suggests an expectation for a quicker resolution to tariff issues and trade wars, alongside a belief that inflation remains under control, which could lead to rate cuts by the Federal Reserve [4] Federal Reserve Insights - The Fed's preferred inflation gauge, the core PCE index, rose 2.5% annually in April, down from 2.7% in March, indicating tame inflation despite tariffs [5] - The Consumer Price Index (CPI) report for April showed a 2.3% increase in consumer prices year-over-year, below the expected 2.4%, marking the lowest annual increase since February 2021 [6] - Some Fed officials express skepticism about the transitory nature of inflation caused by tariffs, with ongoing debates about the impact on employment and price stability [7][8] Stock Performance - AppLovin (APP) is experiencing strong performance, surpassing earnings estimates for eight consecutive quarters, with a projected full-year EPS of $8.39, reflecting an 85.2% growth rate year-over-year [12][15] - Sea Limited (SE) is also outperforming, with analysts raising fiscal 2025 EPS estimates by 1.44%, projecting a total revenue of over $22.37 billion this year, a 32% increase from 2024 [17] Market Outlook - The decline in volatility surrounding tariffs and stable inflation trends suggest potential for further market gains, with expectations of two rate cuts by the Fed this year [19]

29 May 2025 Emerging bond dynamic and regime change Toronto The tariff threat to the tariff retreat has now been reduced to a two-day cycle. Donald Trump threatened Europe with a higher 50% tariff last Friday and then on Sunday extended the deadline for Europe to come to an agreement from 1 June to 9 July. This latest twist and turn will have further convinced investors of what many were already assuming, based on GREED & fear's meetings with investors in North America this week. That is, that the 47th Pres ...