In uncertain economic times, investors often bolster their portfolios with safe options, like mutual funds, ETFs, and stocks with high dividend yields. While the broader market has wavered and shown signs of a potential recession in 2019, the real estate market remains one of the strongest industries for investors. So, while real estate offers a safe investment opportunity, it also offers significant growth potential for the future.
That said, you may not be sure which individual stocks or funds will yield the best results in a possible bear market. Thankfully, we’ve already done a lot of the research for you. The following 5 real estate stocks show the greatest promise for the remainder of 2019 and beyond.
Innovative Industrial Properties (IIPR)
If you want to invest in real estate while also mitigating risk in your portfolio, REITs (Real Estate Investment Trusts) are some of the best options for you. Innovative Industrial Properties is primarily involved in the acquisition and management of facilities for cannabis production. While these facilities are generally reserved for experienced, medical cannabis producers, changing legislation throughout North America could increase demand for recreational cannabis facilities as well.
Senior Housing Properties Trust (SNH)
Now that the Baby Boomer generation is reaching retirement age, there is an increased need for medical and nursing facilities for the elderly. There are currently more senior citizens than ever, and Senior Housing Properties Trust continues to be a powerhouse in this section of the real estate market. Additionally, SNH is great for investors who want more high-yield dividend stocks, as the current yield is 13.31.
STAG Industrial (STAG)
Stag Industrial focuses on the ownership of single-tenant industrial properties. This niche has benefited from the rise in Internet sales, as businesses move their storefronts to e-commerce websites, and their real estate to warehouses. STAG Industrial has shown consistent growth over the last 5 years, in addition to providing a dividend yield of 5.71. As e-commerce continues to grow, stocks like STAG will gobble up a greater share of the market.
Retail Opportunity Investments (ROIC)
Like the name implies, Retail Opportunity Investments deals in the ownership and management of retail real estate, with a focus on grocery stores in densely populated regions. While many other retail stores are turning to e-commerce and moving away from brick-and-mortar locales, grocery stores remain consistently strong in the real estate market. ROIC’s stock growth has been relatively small over the last 5 years, but with a dividend yield of 4.91, it is still a strong bet going forward.
GEO Group (GEO)
GEO Group focuses on the management of correctional and rehabilitation facilities. While the GEO Group invests heavily in the public-private detention sector in the United States, it also invests in correctional real estate in South Africa, Australia, and the UK. And though GEO may not be a growth stock for your portfolio, its high dividend yield of 9.54 is a great addition to just about any portfolio.
Are you interested in learning more about real estate investment? Consult the experts at Clean Title today!