Real estate investment trusts (REITs) have been a top performing asset class for numerous decades now. They are a great way to diversify your portfolio and get steady returns over time. I've built a smart, sustainable empire by buying stellar stocks at very attractive prices. Click here to find out why everyone should invest in REITs.
The home goods retailer announced earlier this week it had “substantial doubt” it can continue. That may cause a headache for its landlords and other Real estate invest. But it is important to remember that REITs have many advantages over other investment, including diversification, income, and liquidity. So even in uncertain times, REITs can provide a great way to make money.
The prevailing wisdom on Wall Street is that recessions follow massive interest rate hikes, as high-interest rate slow down sales of Real estate and other assets. But REITs can actually be beneficial during a recession, as they are less sensitive to economic cycles than other asset classes. That’s why I’ve put together a list of the top five REITs for 2023.
We're covering three of our favorite REITs. They combine to represent 13.8% of our portfolio. Want huge yields today? Read on to see what we have in store. First up is ARMOUR Residential REIT, Inc. (NYSE: ARR and ARR-PRC). ARMOUR is one of the largest publicly-traded REITs in the US and it specializes in residential mortgage-backed securities. They have a strong track record of performance and they pay dividends monthly.
Next up is Ventas, Inc. (NYSE: VTR). Ventas is a leading healthcare REIT that focuses on senior living, medical office buildings, and skilled nursing facilities. They are one of the largest healthcare REITs in the US and they have a proven track record of success. They pay a quarterly dividend and have a history of steady growth.
Finally, we have NorthStar Realty Finance Corp. (NYSE: NRF). NorthStar is a commercial Real estate finance company that provides financing to a wide range of Real estate invest. They specialize in debt investment and they have a strong portfolio of properties. They pay a quarterly dividend and have a history of steady growth.
With a recession all but certain in 2023, now is the time to batten down the hatches in your portfolio. Read more as we discuss two great strategies for invest in REITs during a downturn. The first is to focus on REITs that are resistant to economic downturns. Here are three REITs that enjoy strong tailwinds and are resistant to economic downturns: ARMOUR Residential REIT, Ventas, and NorthStar Realty Finance.
The second strategy is to look for REITs that benefit from economic weakness. For example, US equity markets rallied on the first week of the year after employment data showed strong job growth. That could be a sign that the economy is in better shape than expected, which could benefit certain REITs. For example, some REITs have exposure to industries like retail, leisure, and travel, which could benefit from increased consumer spending. Finally, keep an eye out for REITs that specialize in value-add investment, such as distressed properties or buildings undergoing renovations.
In conclusion, invest in REITs can be a great way to diversify your portfolio and get steady returns over time. There are a number of REITs that are resistant to economic downturns and can benefit from economic weakness. To find the best REITs for 2023, focus on REITs that specialize in value-add investment, like distressed properties or buildings undergoing renovations.
A photo of a person looking at a chart displaying the performance of different stocks and REITs.
