Pimco-to-DWS See Economy Escaping fiscal Cliff Even as Stocks Fall
The momentum has certainly been in the HB's favor. I think REITS look interesting as well. VNQ is a pretty reasonable play imho.
*The Fed's third quantitative easing plan, or QE3, involves buying $40 billion in mortgage-backed securities every month with no announced end date. The resulting low interest rates are aimed at making homes more affordable, benefiting real estate firms and homebuilders. They also benefit from refinancing their corporate debt and mortgages.
REITs have to distribute 90% of their income to shareholders because they're exempt from paying taxes at the trust (or corporate) level. So they tend to pay fatter yields than stocks. A part of a REIT's dividend payout may be considered a nontaxable return of capital, which reduces the shareholder's taxable income. This is a complicated individual tax issue that should be discussed with an accountant or tax preparer.
"REITS were never subject to the lower tax rates on dividends, so the changing (increasing) tax rates are not impacting REITs to the degree they are impacting other dividend-paying stocks," said Zafran.
That would make them more appealing over other dividend-paying stocks under President Obama's proposed increases on capital gains.*