10 Stocks I'm Buying As REITs Have Never Looked So Good

Dec. 21, 2024 8:05 AM ETSPY, VNQ, VGSIX, ADC, AMH, AMT, ARE, ARTNA, CNQ, CTRE, EGP, PR, REXR, CNQ:CA, ARTNB, VGSLX, VGSNX27 Comments
(18min)

Summary

  • The recent market selloff, driven by the Fed's revised rate-cut forecast, has made high-quality REITs attractively priced for long-term dividend growth investors.
  • Despite poor stock price performance, REITs have strong fundamentals, with favorable earnings yield spreads and dividend yields compared to the broader market.
  • REITs are undervalued due to being treated as bond proxies, but their strong commercial real estate fundamentals and historical outperformance post-Fed rate cuts suggest a buying opportunity.
  • My REIT-heavy buy list includes top picks like Agree Realty, American Homes 4 Rent, and American Tower, poised for growth and strong dividend yields.
  • Looking for more investing ideas like this one? Get them exclusively at High Yield Landlord. Learn More »

Real estate investment trust REIT. Finacial concept 2022

Funtap

The market's sharp selloff over the past week puzzled me at first.

It seemed to have been triggered by the Fed's changed "dot plot" forecast from three rate cuts next year to two. Was that enough to cause such a selloff?

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This article was written by

Austin Rogers profile picture
19.22K Followers

Austin Rogers is a REIT specialist with a professional background in commercial real estate. He writes about high-quality dividend growth stocks with the goal of generating the safest growing passive income stream possible. Since his ideal holding period is "lifelong," his focus is on portfolio income growth rather than total returns.

Austin is a contributing author for the investing group High Yield Landlord, one of the largest real estate investment communities on Seeking Alpha, with thousands of members. It offers exclusive research on the global REIT sector, multiple real money portfolios, an active chat room, and direct access to the analysts. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ADC, AMH, AMT, ARE, ARTNA, CNQ, CTRE, EGP, PR, REXR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Related Stocks

SymbolLast Price% Chg
SPY--
SPDR® S&P 500® ETF Trust
VNQ--
Vanguard Real Estate Index Fund ETF Shares
VGSIX--
Vanguard Real Estate Index Fund Inv
ADC--
Agree Realty Corporation
AMH--
American Homes 4 Rent

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