Rising interest rates and slowing economic growth have placed downward pressure on growth stocks, leading investors into alternative assets that may be better positioned to withstand financial market turbulence. REITs present income investors with a unique value proposition as they are legally required to pay 90% of their income to shareholders. Although REITs carry their own set of risks, they’ve proven to be a lifeline during economic downturns. This includes our latest reaffirmation in the Best Real Estate Dividend Stocks List that provided a price return of 2.9% since making it to the list on March 17, 2022. In contrast, amidst the ongoing volatility in the equities market, the broader S&P 500 index is down more than 10% during the same timeframe.
Thanks to strong revenue growth, increased diversification and a post-pandemic recovery that has aided the restaurant industry, our REIT pick offers a compelling opportunity for income investors. As a relatively new entrant to our list, investors can view our latest reaffirmation as a strong momentum play that is delivering above-average earnings growth.
The REIT has a dividend yield of 4.9%, which is slightly above the real estate sector average of 4.46%. It has recorded five consecutive years of dividend increases.
You can check out the Best Real Estate Dividend Stocks List to explore all the stocks.
