Rising interest rates have affected a lot of different sectors. Perhaps none as dramatically as the housing sector. With higher mortgage costs, stricter lending standards, as well as overall high initial prices for homes, many would-be homebuyers are feeling stuck. While that’s a shame, it’s been a boon for our latest Best Dividend Stocks Model Portfolio pick and its investors!
You can check out the Best Dividend Stocks Model Portfolio to explore all the stocks.
Our pick just so happens to be one of the largest apartment owners in the nation with over 100,000 units under its belt. As more people seek renting as a viable option instead of homeownership, our pick has profited from demand.
Our pick has taken this one-step further. By focusing on the key regions of the nation such as the Sunbelt, our pick has been able to benefit from the region’s strong economic growth and continued demand. With that, our pick has been able to realize above-average rent growth. That, in turn, has driven dividends and future property additions/construction.
As an added bonus, our pick has been smart with capital recycling and selling of overvalued assets. Our pick has used the current high price environment to prune its portfolio and take advantage of long-term gains, boosting cash on hand and supporting its hefty dividend.
All in all, our pick remains one of the best plays of the housing sector and the rise of renter nation.
