Back to top

Play the Real Estate Segment with These 5 Stocks

Read MoreHide Full Article

Not many have the inclination or the means for real estate investment, despite the fact that it helps diversify the portfolio and balance out its risk/reward profile. But real estate investment trusts (REITs) or real estate focused exchange traded funds (ETFs) are a good way to play the sector. This is particularly true for income-seeking investors because of the high dividend yields they typically offer.

The current environment, while wrought with Sino-U.S. trade tensions, a global slowdown in growth and Brexit-related uncertainties, remains positive for the group mainly because of its highly localized nature, the promise of steadier interest rates and easier availability of capital. Low unemployment levels and demographics also support increased spending, including on real estate.   

In general, a well-diversified portfolio of real estate assets, strong revenue growth prospects and low leverage that could help companies add to their asset base are positives for industry players.

Here are a few worth considering-

Arbor Realty Trust (ABR - Free Report)

Arbor Realty Trust is a specialized real estate finance company investing in real estate-related bridge and mezzanine loans, preferred equity, mortgage-related securities and other real estate-related assets.Key numbers are:

Zacks Rank #1

Expected revenue growth for 2019 is 24.2%

Dividend yield 8.49%

Debt cap ratio 66.6%

 

NexPoint Residential Trust, Inc. (NXRT - Free Report)

Dallas-based NexPoint Residential Trust acquires, owns, operates and selectively develops multifamily properties. It operates primarily in the Southeastern states and Texas. Key numbers are:

Zacks Rank #1 (Strong Buy)

Expected revenue growth for 2019 10.8%

Dividend yield 2.94%

Debt cap ratio 79.4%

 

Jones Lang LaSalle Inc. (JLL - Free Report)

Jones Lang LaSalle is a leading, global professional services and investment management firm specializing in real estate. Key numbers are:

Zacks Rank #1

Expected revenue growth for 2019 3.8%

Dividend yield 0.50%

Debt cap ratio 14.9%

 

Colliers International Group Inc. (CIGI - Free Report)

Colliers International Group provides commercial real estate services including outsourcing and advisory services, lease brokerage and sales brokerage. The company's operates across the Americas; Europe, Middle East and Africa (EMEA); as well as the Asia Pacific. Key numbers are:

Zacks Rank #1

Expected revenue growth for 2019 9.0%

Dividend yield 0.14%

Debt cap ratio 72.1%

 

PennyMac Mortgage Investment Trust (PMT - Free Report)

PennyMac Mortgage Investment Trust is a real estate investment trust operating as a specialty finance company primarily invested in troubled residential mortgage loans and mortgage-related assets from FDIC liquidations of failed banks, US Treasury Legacy Loans Program auctions, and direct acquisitions from mortgage and insurance companies and foreign banks. The Company's objective is to provide risk-adjusted returns to its investors over the long-term, primarily through dividends and secondarily through capital appreciation.

Zacks Rank #1

Expected revenue growth for 2019 4.9%

Dividend yield 9.49%

Debt cap ratio 26.4%

 

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>

Published in