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A high dividend yield is typically a red flag. But there are some exceptions. I highlight 3 REITs with yields of up to 8% that I am buying.
One of the world's leading investors recently stated that their confidence has been restored in the economy and markets. They shared several sectors where they are particularly bullish right now. We share some of our top picks poised to profit from these macro trends.
Real estate is currently out of favor, with VNQ underperforming the S&P 500 by about 70 percentage points over three years. Even if it's not truly undervalued, at least the real estate sector doesn't have any signs of a bubble, unlike AI or tech. There are certainly attractive opportunities in the high-quality REIT space, where some picks are further depressed by unique, idiosyncratic issues.
I seek out deeply discounted, high-yield blue chips, especially when the market seems as frothy as it is today. I share two such opportunities that Mr. Market is making available. I detail why they are being sold off so aggressively and why I think the risk-reward is very attractive right now.
ARE offers a 6.4% dividend yield at a steep discount, with strong long-term fundamentals and a leading position in life sciences real estate. Recent share price weakness is due to tenant concessions, asset dispositions, and post-pandemic demand normalization, but recovery is expected as concessions expire. Pipeline developments, high occupancy, and potential EU investment should drive FFO growth, supporting a projected 15-20% annual total return over five years.
U.S. equity markets rallied to fresh record-highs this week as investors cheered upbeat corporate earnings results and several major trade deals ahead of a frenetic week of potentially narrative-shifting catalysts. Months of tariff bemoaning and general pessimism have surrendered of late to some mid-summer optimism, but a barrage of obstacles loom, including a Fed that is ever-eager to play spoiler. Notching record-highs in four of the past five weeks, the S&P 500 rallied another 1.5% this week, advancing in all five trading sessions.
You don't need to be an income-seeking investor to appreciate dividend-paying stocks. That's because businesses that commit to returning profits to shareholders have a tendency to outperform businesses that don't.
While most commercial office landlords are still hunting for post‑pandemic tenants, there's a sector of the real estate industry that's breeding breakout growth: life sciences. Global biotech spending is projected to triple from roughly $1.7 trillion in 2025 to more than $5 trillion by 2034.
Alexandria Real Estate is one of those rare deep value investments that's currently in prime buying territory. I forecast a 40% total return from the investment over the next 18 months. There are specific medium-term macro and operational catalysts that are likely to cause the market to re-rate ARE's valuation multiples higher as the six-month mark approaches.