What Are REITs? 5 Best REIT Stocks for 2023

#reit #realestate #stocks #dividend #investing #investmentstrategy #personalfinance #diversification #2023 #fixedincome

Use publicly traded REITs to start investing in real estate in 2023.

~~~ We share our top ideas for 5 Best REIT Stocks to own - based on high-quality, size & scale, attractive sub-sectors, industry trends & tailwinds, financial performance, and historical stock returns & dividend yields

~~~ Now is a good-time to buy REIT stocks. Impacted by high-interest rate environment, Fed's hiking cycle & a looming recession in 2023, REITs fell by (24%) YTD (as of 12/9/2022) compared to (30%) for NASDAQ & (18%) S&P500, making it the 2nd worst performing sector only next to Tech. However, as interest rate eases & returns to normal levels in 2023, REITs should come bounce up. We believe investors should take advantage of this relative discount available currently on REIT stocks as they see fit.

Investing in REITs is a great strategy to diversify your stock portfolio for several reasons.

~ First, REITs provide a hassle-free opportunity for retail investors to invest in commercial real estate. While owning real estate is a great way to build wealth & generate recurring, fixed income - it comes with a lot of burdens such as procuring mortgage home loan, finding tenants, paying property taxes, buying home insurance, managing maintenance & repairs, and dealing with brokers & agents. If you decide to sell the property & cash-out, then you have to be patient & wait for right market-timing, so you generate profit or minimize losses. However, by investing in REITs, all these problems are gone. REITs are professionally managed by real estate experts & you can buy & sell your shares any time you want.

~ Second, REITs offer attractive dividend yields - acting as a source of fixed, recurring income to supplement your monthly paychecks

~ Third, REITs are less volatile compared to stock market & hence offer great diversification benefit to your investment portfolio. If you prefer stable & predictable returns, add REIT stocks to your portfolio
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Chapters:
0:00 Intro
0:54 What Are REITs
04:00 Why Invest In REITs
11:18 How to Value REITs
18:37 Our 5 Top Picks
20:50 AMH - American Homes 4 Rent
22:20 PLD - Prologis
25:51 O - Realty Income
29:46 EQIX - Equinix
32:24 ARE - Alexandria
35:12 Conclusions
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Disclaimer: This is not investment advise. Please do your own due diligence before buying the stocks. We may own the stocks mentioned in the video.