Real Estate Stocks Might Just Make a Comeback 🏠💰
High-profit potential and lucrative dividend returns: Morningstar showcases top Real Estate Investment Trusts (REITs) offers.
After a rocky ride on the stock market, real estate investments are potentially looking up. Morningstar, an investment research firm, recommends Real Estate Investment Trusts (REITs) with up to a staggering 59% potential upside and high dividends.
According to Morningstar, REITs are interest-sensitive, meaning they tend to thrive when interest rates drop and struggle when they rise. With falling interest rates causing a rally in REITs, the experts believe that US REITs will continue to experience stock price movements that are inversely related to interest rate movements.
Here are the 9 REITs Morningstar recommends for your investment consideration:
- Pebblebrook Hotel 🏨🏨
- Park Hotels & Resorts 🏨🏨💸💸
- Kilroy Realty 🏢🏢
- Healthpeak Properties 🏥🏥
- Sun Communities 🏠🏠
- AmeriCold Logistics 🧊🧊
- Realty Income 💸💸
- Crown Castle International 📲📲
- Federal Realty Investment Trust 🏣🏣
While all 9 of these stocks are undervalued and have good upside potential for the next year, their dividend yields vary significantly, ranging from a mere 0.27% to a robust 8.86%. So, the question is, which stocks should investors focus on?
The Pebblebrook Hotel stock, with its 59% upside potential and 0.27% dividend yield, is Morningstar's top choice if you're willing to take on more risk. This REIT is the largest US lodging REIT focused on owning independent and boutique hotels. Despite the low dividend yield, its combined portfolio had a higher revenue per available room (RevPAR) and a higher EBITDA margin than its hotel REIT competitors in the past. The Pebblebrook Hotel stock has already broken its downtrend and surpassed its 50-day and 200-day moving averages, hinting at a golden cross soon.
If you're more interested in higher dividends, Park Hotels & Resorts, with its 8.86% dividend yield, might be the REIT for you. Morningstar expects this REIT to see solid growth, as the renovations it completed in 2022 and 2023 should keep the revenue per available room (RevPAR) growth above the industry average for several years. The stock also has a 45% upside potential, making it a strong contender for your investment portfolio.
Remember, diversification is key when it comes to investing. If you prefer diversified exposure, checking out REIT ETFs like Vanguard Real Estate ETF (VNQ) could be a good idea.
So, consider adding one or more of these top-performing REITs to your portfolio for some extra income and potential growth! 🚀🚀🚀
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Or, if you're interested in other income-focused investments, take a look at 69 Years of Rising Dividends: Don't Miss Out on These Royalty Stocks or The Richest Stocks in the World: These New ETFs Make You Wealthy with Cash Flow Aristocrats. 💸💸💸
As the real estate market shows signs of recuperation, investing in Real Estate Investment Trusts (REITs) such as Pebblebrook Hotel and Park Hotels & Resorts could yield significant returns. Pebblebrook Hotel, with a 59% potential upside and a 0.27% dividend yield, is a top pick for those willing to take on more risk, while Park Hotels & Resorts, with an 8.86% dividend yield, may be a suitable choice for those seeking higher dividends.
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