Are you looking to invest in real estate but not sure where to start? Real estate investment trusts (REITs) might be the answer you’re looking for. REITs act as a way for investors to gain exposure to real estate without the hassle of actually owning and managing properties. These companies purchase a portfolio of properties, lease them out, and then distribute the rental income to their investors in the form of dividends.
While REITs can be a solid investment choice for income investors, there are certain factors to consider, such as interest rates. When interest rates are high, it can become more costly for REITs to acquire new properties, and the attractiveness of their dividends can be overshadowed by other high-yielding investments like CDs and T-bills.
However, with interest rates expected to decline in the near future, now might be the perfect time to consider investing in REITs. Here are four resilient REITs that could be worth adding to your portfolio:
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Realty Income (NYSE: O)
- Realty Income is one of the world’s largest REITs with a diverse portfolio of properties across the U.S., U.K., and Europe. They have a strong track record of maintaining high occupancy rates and have consistently raised their dividend payouts over the years.
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Vici Properties (NYSE: VICI)
- Vici Properties specializes in owning casino and entertainment properties in the U.S. and Canada. Despite challenges during the pandemic, Vici has continued to raise its dividend and maintains a high occupancy rate.
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STAG Industrial (NYSE: STAG)
- STAG Industrial focuses on industrial properties, with tenants that include major e-commerce players like Amazon and FedEx. They have a history of increasing their dividend payout each year since their IPO in 2011.
- Digital Realty Trust (NYSE: DLR)
- Digital Realty Trust leases data centers to Fortune 500 companies and is positioned to benefit from the growth of the cloud and AI markets. While their dividend yield may be slightly lower, the long-term growth potential is promising.
These REITs offer the opportunity to diversify your portfolio and potentially generate a steady stream of income through dividends. As interest rates trend downward, now could be a good time to consider these resilient REITs as part of your investment strategy.
By investing in these REITs, investors can take advantage of the potential for long-term growth while also benefiting from regular dividend payouts. If you’re looking to add real estate exposure to your investment portfolio, these REITs could be a great place to start. Keep an eye on market trends and economic conditions to make informed decisions about your investments.