Rising interest rates have certainly affected the housing market in a variety of ways, creating plenty of losers and compounding issues with home ownership. But in that, it’s also created plenty of winners as well, including our Best Dividend Growth Stocks Model pick. Our pick has managed to see rising profits as the housing sector has recently become a bit volatile, allowing the company to boost its dividend by nearly 20% last year!
You can check out the Best Dividend Growth Stocks Model Portfolio to explore all the stocks.
Our pick is one of the largest landlords around, with more than 100,000 apartment units under its umbrella. As more people are forced to rent rather than own homes, our pick has continued to see rising demand and rents for its units. Part of our pick’s appeal continues to be its focus on the so-called Sunbelt region. Areas such as Florida and Georgia continue to see strong economic growth and an influx of residents, perhaps more so as many people have started to leave the more expensive regions.
Meanwhile, our pick’s strong expansion efforts, buyouts and smart M&A have helped grow its portfolio and drive future dividend growth. With its own low cost of capital, our pick has been able to leverage itself smartly.
And investors have profited the whole time. With shares now trading at bargain levels, it’s time to add the real estate name to our list.
In order to make room for our new real estate stock, we’ve removed an insurance underwriter and reduced our holdings in a security products firm.
