The stock market continues to battle volatility, putting the traditional buy-and-hold wisdom to the test. Is now the time to own or buy stock in great companies?
Here are three real estate stocks to consider if you choose the long-proven path to prosperity. They are a real estate investment trust (REIT) and have a solid record of dividend payouts that will reward your patience.
STORE Capital (STOR -0.29%) As of the second quarter, it has a numbered portfolio of 3,012 properties operated by 579 tenants in 49 states. The company focuses on unit-level profitability and seeks out and holds profitable locations.
It’s working so far. Since going public in 2014, STORE Capital has provided shareholders with a total return of approximately 96%, nearly double the benchmark. Vanguard Real Estate ETF.
The company name stands for “Single Tenant Operational Real Estate”. As of the second quarter, this represents a wide and diverse range of restaurants, including 759 restaurants, 168 medical and dental clinics, 33 food processors, 114 medical processors, 279 early childhood centers, and 8 bass pro shops. Portfolio. It’s also growing rapidly, with 62 properties he purchased for $392 million in the second quarter alone.
Warren Buffett gave STORE a big boost in 2017 by paying $377 million for a 9.8% stake in the REIT. Berkshire Hathaway Owns 5% or more of a REIT.
Buffett and other shareholders are now enjoying a yield of about 5.8% after their seventh consecutive year of dividend increases. The stock is currently trading at about $26.50, down about 23% year-to-date.
STORE’s portfolio is 99.5% lease-filled with an average remaining life of approximately 13 years. So this REIT of his must continue to build on its track record as a passive income machine.
Gladstone commercial (good 0.11%) is a much smaller business than STORE Capital, but with a similarly impressive record and good prospects. Since listing in 2003, this industrial and office REIT has: S&P 500 In total returns while consistently offering higher yields.
In this case, this is a monthly payment of $0.1254, yielding about 8%, roughly in line with the current inflation rate. And that’s much higher than his 1.7% or so in the S&P 500. The stock is currently trading at around $18.75, down nearly 28% year-to-date.
David Gladstone, Founder and CEO of Gladstone Commercial and 3 others NasdaqIn a recent interview with The Motley Fool, the real estate investment trust, which is listed on the . He also shared that his company is run with that in mind.
GOOD currently owns 136 properties in 27 states and has a client list of 112 tenants. The company has cut its share of office properties in favor of industrial properties, which Gladstone believes are a much more promising sector.
In fact, all 15 planned acquisitions are industrial property rights. Gladstone said onshoring and other trends are making the sector attractive, especially in light of return-to-work concerns. “There aren’t many manufacturing jobs you can do from home,” he pointed out.
Marc Rapport has positions in the Gladstone Commercial, STORE Capital, and Vanguard Real Estate ETFs. The Motley Fool holds positions in and recommends Berkshire Hathaway (B shares), Store Capital and Vanguard Real Estate ETFs. The Motley Fool recommends the following options: Long $200 Jan 2023 Berkshire Hathaway (B shares) call, Jan 2023 $200 short Berkshire Hathaway put (B shares), Berkshire Hathaway’s $265 short call in January 2023 (B shares). The Motley Fool’s U.S. headquarters has a disclosure policy.