by Titus Kam on March 15, 2020
Introduction
Having financial freedom will reduce the stress and anxiety of waiting for our next paycheck, and one of the ways to achieve that freedom is by strategically investing the surplus you have in the stock market for a return.
Besides investing in the stock market, you could consider expanding your portfolio with real estate stocks and property investments. They are considered the perfect investment for many individual investors. It provides better earnings than the stock market, even when the market is volatile. Historically, when the financial sector spirals out of control, property stocks always seem sure to bounce back.
This is especially true today, with the COVID-19 virus causing massive uncertainty and chaos all around us.
In fact, this is a once in a lifetime opportunity to invest in properties and to quote Tom Stevenson - “In five years we will likely look back on March 2020 as one of the best periods to buy into the market, the low rates give you more buying power”
While there are countless pieces of content out there dedicated to specific techniques and strategies for you to become wealthy. This article points out the best stocks that you should keep an eye out on TODAY.
Real Estate Stocks for Dividend Income in March 2020 (Our Top List Updated)
As expected with the market conditions right now, we see a massive dip in the stock chart for ZG. This also means that the stock price is at an all-time low, making it the perfect time for individual investors to buy in while it’s cheap.
With Zillow Group, the company purchases homes directly from consumers and then flips them on the open market. When Zillow Group initially announced plans to enter the home-flipping market with its “Instant Offers” pilot program in mid-2017, it was clear that they intended to disrupt the traditionally tedious home buying process.
If Zillow can successfully tough out this dip in our stock market while simultaneously leveraging its scale for improved profitability, its stock price should respond positively in kind.
Stay diligent in your research, and keep an eye out for that upward trend.
The Equinix stock price has consistently been on the rise, but it is now experiencing a small downward trend from the current market situation.
Equinix, Inc. (Nasdaq: EQIX) connects the world’s leading businesses to their customers, employees, and partners inside the most-interconnected data centers. On this global platform for digital marketing, companies come together across more than 50 markets on five continents to reach everywhere, interconnect everyone, and integrate everything they need to create their digital futures.
They recently opened a new data center in Melbourne to advance their smart city innovation and support the growing demand for digital transformation globally.
The company’s CEO Charles Meyers recently wrote an article on the company’s blog addressing concerns for how COVID-19 could affect their most recent operations and how they are quickly implementing precautionary measures to minimize the risk of this pandemic.
Leveraging IBX technicians via Smart Hands whenever possible to reduce the number of people on site
Restricting visits to the IBX to critical work only
Minimizing the number of people and the amount of time spent in the IBX facilities
This company is changing the future of Real Estate as we know it, keep an eye out in this space.
The company name might not be familiar to many investors, as it’s relatively new to the public markets. It held its initial public offering (IPO) in June 2017.
Safehold Inc. is a real estate investment trust (REIT) that promises better capital and returns for owners, developers, and operators of high-quality commercial real estate.
It is ranked highly among the top REIT stock performers in 2020 in The Motley Fool article - The 7 Top Performing Stocks of 2020
We believe that Safehold stock can continue to perform positively. Even amidst the chaos in the market driven by COVID-19, as the company doesn’t have any international exposure whereas China and several other countries have been hit the hardest so far.
You can find the company’s investor’s website here.
With our baby boomers reaching old age now, Omega Healthcare is here to fulfill their demand for assisted living centers and skilled nursing facilities. This industry is more relevant now than ever.
The company has a laser focus on investing in our future of senior citizen care. Listed with the NYSE in 1992, Omega was one of the first publicly-traded REITs explicitly structured to finance the sale and leaseback, construction, and renovation of Skilled Nursing Facilities.
In 2015, Omega merged with Aviv REIT, creating the largest publicly traded REIT in the U.S. dedicated to SNFs (skilled nursing facilities).
Geographically, Omega’s portfolio is diverse enough that one or two states making drastic cuts to their Medicaid programs won’t stop the company from growing. That being said, Omega’s shareholders are beginning to sweat because of market conditions at the moment.
Wall Street analysts have mixed feelings about this stock as this company’s financials show a combination of strengths and weaknesses. Based on the company’s price performance, this investment is somewhat risky while presenting reasonable potential for ROI.
Overall, we still included this stock on our list as they have shown consistent growth throughout its operations as a company, making it a solid long-term investment for your portfolio.
STAG Industrial, Inc. (NYSE: STAG) is a real estate investment trust focused on the acquisition and operation of single-tenant industrial properties throughout the United States. By targeting this type of property, STAG has developed an investment strategy that helps investors find a robust balance of income plus growth.
Investors of the company have seen its share price decreased by 16% over the past month. Overall, this stock has performed with an upward trend over the past five years because of its solid foundation.
It is crucial to consider the total shareholder return, as well as the share price return, for any given stock. With reliable performance in the commercial real estate market as of late, there’s been no shortage of promising assets for the company to buy.
Furthermore, STAG currently yields 4.5% in dividends for its investors. Making it one of the top 3 dividend paying stock in the market today.
So if you’re looking for high paying dividend stocks to invest in, STAG is one generous company indeed.
The company has a significant focus on real estate venues, which create value by facilitating out-of-home leisure and recreation experiences where consumers choose to spend their discretionary time and money. These include investments into theatre, gaming casino resorts, amusement parks, golf entertainment complex, ski resorts, and more! This is one of the best real estate stocks on this list.
EPR is now known as one of the most undervalued REITs in the market today. The stock price has been massively affected by the COVID-19 chaos, as you can see on the chart.
This dip in the chart makes perfect sense to us, the economic impact of COVID-19 is due to the reaction to it: public fear, quarantines, closures of public events, etc. And unfortunately for EPR, the company is in the business of entertainment of people in large groups.
Do note that EPR is a landlord and is not running an entertainment business itself.
That said, EPR has superior expertise in their niche, and we can safely consider it a high-quality REIT.
They say that the past can be an accurate predictor of the future, so we can confidently assume EPR to bounce back as they’ve demonstrated reliable performance by maintaining portfolio occupancy rates in the high 90s. In general, experienced companies are more resilient in income generation, which results in superior returns compared to most real estate assets.
So you may want to give this stock some serious thought.
Thankfully, Mr. Market has given us a unique opportunity to purchase a very undervalued stock today. So make sure you keep a close eye on this one as it’s a once in a lifetime opportunity.
In our list, we included a few stocks that you should be paying attention to today - Potentially investing in them for a high return.
That said, SL Green Realty Corp is not one of them if you’re looking for long-term growth.
As you can see from the stock chart above, the stock has a negative performance consistent throughout the last five years.
SL Green Realty Corp is an S&P 500 company and New York City’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing the value of Manhattan commercial properties.
As of December 31, 2019, SL Green held interests in 97 buildings totaling 44.0 million square feet.
They may have an impressive list of assets under their belt. But as a potential investor, now might not be the most optimal time to buy, given that it is trading around its fair value. The negative growth outlook increases the risk of holding the stock. Some might even see this stock option as an excellent opportunity for shorting, but we can’t say for sure just how low it could go.
Real Estate vs Stocks (What Investment is Right for You?)
While investing in stock options is more of a passive approach where you would track the performance of a broad market index like the S&P 500, we also recommend building a physical real estate portfolio as an alternative investment vehicle.
Whether you’re planning for retirement or thinking of retirement investing, saving for a college fund, or earning residual income, you still need an investment strategy that fits your budget and your needs to ensure you come out profitable.
So which is the better investment option? The stock market or real estate investing?
We have our preferences in real estate investments, as you can tell from this article. But we would like to highlight out the pros and cons to both sides of the coin, so you can get a better sense of which one to choose, or both!
What to Invest in Besides Stocks & Real Estate?
Traditionally, there’s always been a question between investing stocks vs real estate. Aside from stocks and real estate properties, there are plenty of other options for you to choose from in the market today.
Consider investing in precious metals - gold in particular. Precious metals seem to be controversial assets. Some investors have near-religious faith in them as a foolproof investment. Others see them as a speculative nightmare.
As usual, the truth lies somewhere in the middle.
The reason why people find these assets speculative is because they only respond positively to certain market conditions. We would all be investing in them if precious metals would reliably rise when the stock market falls, but that’s not the case.
One of the main benefits of precious metals, whether gold or silver, is that they’re tangible and you can actually keep them at home or some other safe place. In the event of a complete economic meltdown, they can still be used for barter.
If you’re interested in precious metals as an alternative investment, you can find simple strategies on how to purchase gold and silver as an investment even as a beginner in this article here.
Alternatively, you could consider investing in penny stocks for surprisingly quick gains, However it comes with high risk in return for its potential high rewards.
You could potentially lose it all faster than you can say - Mississippi.
Our penny stock article will help you minimize your risk when it comes to deciding on what stocks to purchase now. Feel free to select from our top 5 best penny stock list to save you some time on your decision making.
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