The stock market’s strong run over the past few years brought attention to high-flying growth stocks, usually from the technology sector that, were consistently outpacing the market. However, fresh volatility within the last few months has shifted the focus back towards other investment strategies, and now it might be time for investors to check out things like real estate investment trusts, or REITs.
REITs are companies that own, operate, or finance real estate properties that produce income, such as apartment complexes or retail locations. These companies are heavily regulated and must meet a number of qualifications to be classified as a REIT, but they do offer investors a few distinct advantages.
First of all, real estate can be a very profitable investment sector when certain economic conditions are present. What’s more, REITs must pay at least 90% of their taxable income in dividends to shareholders, so they are a great option for income investors looking for steady payouts.
With that said, check out the REITs that are model says are impressive options right now:
1. Americold Realty Trust (COLDÂ -Â Free Report)
Americold is a REIT focused on owning and operating temperature-controlled warehouses. It boasts the largest network of these sort of facilities in the world, making it a dominant force in global food distribution and retail industries.
COLD is sporting a Zacks Rank #2 (Buy), as well as a “B†grade for Value in our Style Scores system. The stock is trading at about 19x forward earnings, which is a slight premium to the average but within a reasonable range considering its industry dominance. Plus, Americold offers a dividend yield of 3.5% right now.
2. VICI Properties Inc. (VICIÂ -Â Free Report)
VICI Properties is primarily engaged in owning, acquiring, and developing gaming, hospitality and entertainment destinations. The company leases real property and develops golf courses. In fact, VICI operates notable golfing facilities in Nevada, Mississippi, and Indiana.
