Dividend Cut Alert: 1 BDC And 1 REIT With Likely Lower Dividends In 2025

Mar. 21, 2025 9:15 AM ET, , , 18 Comments1 Like
Roberts Berzins, CFA
9.45K Followers
(9min)

Summary

  • The current market environment suggests a potential recession, leading investors to favor durable and income-producing assets.
  • BDCs and REITs are likely to be among the key beneficiaries here.
  • However, with REITs and especially BDCs investors have to be careful in order to avoid falling in a value trap.
  • In this article I share two securities (1 BDC and 1 REIT), which are very likely to cut their dividends in 2025.

Hundred dollar bill being cut in half with scissors

fatido

The current market environment increasingly indicates that a recession is not that unlikely. We see this from the commentary in the recent Fed meeting, reducing long-term yields and a notable recalibration of market's growth expectations (i.e., growth underperforming value).

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