6 Big Dividend REITs Are Inflation Breakers Also – 24/7 Wall St.
There is an old adage among real estate investors that basically says that you can no longer create or create more land. While you can always build higher, you still need to own the land. Real estate is one of the best assets in which most investors are underweight. While those who own a home are technically real estate investors, the property does not produce any income unless you have rental homes. It can be very capital intensive, not to mention the time.
We have sifted through our 24/7 Real Estate Investment Trusts (REITs) universe in Wall St. It should be noted that REITs can be very vulnerable to sharp increases in interest rates. However, many on Wall Street believe the Federal Reserve will not start raising the fed funds rate from the current level of 0.25% until, at the earliest, next summer, and likely not until 2023.
More importantly, durable assets like real estate tend to be strong holdings with rising inflation, and despite Washington’s denials, there is a good chance that current inflationary trends will continue into the next year and may. -be longer. Plus, with the potential for a big correction still looming, these big companies are now a safe place.
We found six large companies that all pay a distribution of 4.90% or more and are rated Buy among the best companies on Wall Street. It is important to remember that no analyst report should be used as the sole basis for any buy or sell decision.
Gladstone Sales Representative
This company recently announced that it is increasing the distribution for the fourth quarter. Gladstone Commercial Corp. (NASDAQ: GOOD) focuses on acquiring, owning and operating net leased industrial and office buildings across the United States.
As of June 30, 2021, Gladstone has a diversified portfolio of 121 office and industrial properties located in 27 states and leased to 106 tenants. The company has grown the portfolio in a consistent and disciplined manner at a rate of 18% per annum since the initial public offering in 2003. It combines long-term leased properties with long-term debt to lock in the spread in order to create a sustainable, stable cash flow to fund monthly distributions to shareholders. The current occupancy rate stands at 96.5% and the occupancy rate has never been less than 95.0% since the IPO.
More importantly to investors, Gladstone has a track record of success as evidenced by its track record of high payout returns, this occupancy rate and over 10 years of continuous monthly cash payouts.
Investors receive a distribution of 6.59%. Aegis has a price target of $ 26 on Wall Street and the consensus target is $ 25.00. Thursday’s last trade was reported at $ 22.80 per share.