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Real Estate Vs Dividend Stocks: Strategists Debate

According to Standard & Poor's, some 250 companies have lowered their dividends in the second quarter of 2009. That's the most in 50 years. If your looking for income, are dividend stocks still a good bet or might real estate and REITs be better?

Scott Schluederberg, of Hardesty Capital Management, and Greg Genovese, of Thompson National Properties, a REIT company, gave CNBC their take on which is the best investment right now.

"When we pick a stock for its dividend, we make sure there's enough margin of error there," said Schluederberg. "We look at the payout ratio to make sure there's enough protection in case earnings don't quite come through."

As to way invest in them, Schluederberg says that good companies are raising their dividends and that actively managed dividend investing works and that they are a source of rising income.

Genovese said that a prudent investor uses both stocks and bonds in their portfolio, but took a different tact on real estate. "Returns on real estate are higher than dividend stocks and rising," said Genovese. "And real estate is the best hedge against a jobless recovery. It also comes with great tax value in terms or write offs."

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CNBC Slideshows:

The World's Most Expensive Real Estate Markets

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CNBC's Companies in the News:

UBS

Bank of America

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Disclosures:

Disclosure information was not available for Schluederberg and Genovese.

Disclaimer