We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Welcome to Episode #179 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Zacks Account Manager, Nico Yokosawa, to discuss one of the hottest industries of 2019: REITs.
After Nico appeared on a prior episode of the podcast to discuss lottery stocks, it turns out that what he really wanted to discuss was REITs, or Real Estate Investment Trusts.
A REIT allows investors to buy shares in a commercial real estate portfolio. These can be in a lot of different areas such as apartments, hotels, malls, warehouses and assisted living centers.
REITs are required by the IRS to return a minimum of 90% of its taxable income back to shareholders each year. Hence, the reason REITs pay dividends.
Great Performance in 2019
Most investors think of REITs as slow growth names that pay big dividends. You’re not in it to trade it, you’re in it to own for the long haul.
It’s a way to own real estate without having much capital or without having to be a landlord.
But in 2019, the REITs, as an industry, have outperformed.
Year-to-date, REITs have returned 19.6% compared to the S&P 500 (IVV) at 13.2%.
REITs have the sizzle this year.
How Do You Find “Good” REITs to Invest in?
There are 116 REITs in the REIT industry category on Zacks.com. That’s a lot of names to look through. How can investors narrow it?
Start with the industry and then screen for the Zacks Rank, which should get you rising earnings estimates.
Currently, there are only 2 Zacks Rank #1 (Strong Buy) stocks so that’s not really going to get you very far.
Several of Zacks trading portfolios and newsletters will hold REITs as well. If you’re a subscriber, that’s another way to find them.
5 REIT Stock Ideas
1. Omega Healthcare Investors (OHI - Free Report) is in skilled nursing and assisted living facilities in the US and the UK. It has paid an annual dividend since 2003. The current yield is 7.6%. Nico owns shares of it in his personal portfolio.
2. Innovative Industrial Properties (IIPR - Free Report) is one cannabis company that actually has earnings. This small cap company has sky-high earnings growth and a 2.1% yield. But it doesn’t come cheap, with a forward P/E of 33.
3. Arbor Realty Trust (ABR - Free Report) is one of the Zacks Rank #1 (Strong Buy) REITs. It provides loan origination and servicing for multifamily, senior housing, healthcare and other commercial real estate assets. It manages a multi-billion-dollar servicing portfolio. Arbor has a forward P/E of 10.6 and pays a dividend yielding 7.9%.
4. GEO Group (GEO - Free Report) is the other Zacks Rank #1 (Strong Buy) REIT. It offers correctional, detention and residential treatment services to government agencies around the globe. It has a market cap of $2.7 billion. Investors will get a dividend yielding 8.7%.
5. Macerich (MAC - Free Report) operates in the major retail real estate, including trophy properties such as premium outlet malls. The CEO has been buying shares recently as they have dipped near 52-week lows. The mall is a tough place to be right now. This REIT pays a dividend yielding 7.5%.
REITs can offer you more diversification than you might think.
For instance, if you want to own farmland, there’s a REIT for that.
The same is true for data centers and cell phone towers.
What else do you need to know about REITs?
Tune into this week’s podcast to find out.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
Image: Bigstock
Are REITs the Hottest Stocks of 2019?
Welcome to Episode #179 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Zacks Account Manager, Nico Yokosawa, to discuss one of the hottest industries of 2019: REITs.
After Nico appeared on a prior episode of the podcast to discuss lottery stocks, it turns out that what he really wanted to discuss was REITs, or Real Estate Investment Trusts.
A REIT allows investors to buy shares in a commercial real estate portfolio. These can be in a lot of different areas such as apartments, hotels, malls, warehouses and assisted living centers.
REITs are required by the IRS to return a minimum of 90% of its taxable income back to shareholders each year. Hence, the reason REITs pay dividends.
Great Performance in 2019
Most investors think of REITs as slow growth names that pay big dividends. You’re not in it to trade it, you’re in it to own for the long haul.
It’s a way to own real estate without having much capital or without having to be a landlord.
But in 2019, the REITs, as an industry, have outperformed.
Year-to-date, REITs have returned 19.6% compared to the S&P 500 (IVV) at 13.2%.
REITs have the sizzle this year.
How Do You Find “Good” REITs to Invest in?
There are 116 REITs in the REIT industry category on Zacks.com. That’s a lot of names to look through. How can investors narrow it?
Start with the industry and then screen for the Zacks Rank, which should get you rising earnings estimates.
Currently, there are only 2 Zacks Rank #1 (Strong Buy) stocks so that’s not really going to get you very far.
Several of Zacks trading portfolios and newsletters will hold REITs as well. If you’re a subscriber, that’s another way to find them.
5 REIT Stock Ideas
1. Omega Healthcare Investors (OHI - Free Report) is in skilled nursing and assisted living facilities in the US and the UK. It has paid an annual dividend since 2003. The current yield is 7.6%. Nico owns shares of it in his personal portfolio.
2. Innovative Industrial Properties (IIPR - Free Report) is one cannabis company that actually has earnings. This small cap company has sky-high earnings growth and a 2.1% yield. But it doesn’t come cheap, with a forward P/E of 33.
3. Arbor Realty Trust (ABR - Free Report) is one of the Zacks Rank #1 (Strong Buy) REITs. It provides loan origination and servicing for multifamily, senior housing, healthcare and other commercial real estate assets. It manages a multi-billion-dollar servicing portfolio. Arbor has a forward P/E of 10.6 and pays a dividend yielding 7.9%.
4. GEO Group (GEO - Free Report) is the other Zacks Rank #1 (Strong Buy) REIT. It offers correctional, detention and residential treatment services to government agencies around the globe. It has a market cap of $2.7 billion. Investors will get a dividend yielding 8.7%.
5. Macerich (MAC - Free Report) operates in the major retail real estate, including trophy properties such as premium outlet malls. The CEO has been buying shares recently as they have dipped near 52-week lows. The mall is a tough place to be right now. This REIT pays a dividend yielding 7.5%.
REITs can offer you more diversification than you might think.
For instance, if you want to own farmland, there’s a REIT for that.
The same is true for data centers and cell phone towers.
What else do you need to know about REITs?
Tune into this week’s podcast to find out.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>