I have nothing against traders but making money by continuously buying and selling stocks is simply not for me. As with common stocks, one can also trade REITs. But I prefer investing in REITs and holding on to them for a long time. All the while collecting the quarterly dividends like clockwork.

Instead of focusing my attention on whether the REIT price is up or down, I’d rather focus on whether it is growing its dividend per share (DPS) and gross leasable area (GLA). Common sense dictates that an investor should not be attached to their holdings. That is a good rule to follow and one should be ready to sell an investment if it no longer meets your criteria for holding it. But, as an income investor, I do have some degree of fondness for the REITs and dividend stocks that are in my portfolio. I see myself as an actual owner of these properties and businesses. When I pass by a building owned by a REIT that I own shares in, I feel a little sense of pride that it its well maintained and buzzing with people.

Having a sense ownership protects you from panic selling. If you understand the workings of the company that you own, you can judge if the price drop is anchored on fundamentals or a temporary change in sentiment. A price drop can even become an excellent buying opportunity. Having an owner mindset means that you are actually interested in the company. You read their quarterly and annual reports and are up to date with any press releases from them.

I also prefer to invest in companies who treat their small retail investors like owners. They keep their websites updated with what’s happening and most importantly, pay dividends.

If you’re a trader, you buy a security and then sell it for a profit at some point in the future – rinse and repeat. I have nothing against traders and I’m sure some of them make money doing that. I, however, treat investing in REITs and dividend stocks like owning a rental condo or a small cafe – which is to hold on to them and collect the income that they generate.