Four real estate stocks to buy to protect against inflation and to earn dividend-income: Simon Properties Group, Realty Income Corporation, Regency Centers Corporation, and National Retail Properties.
Real estate is part of alternative investments, and it is a sector that gives investors a hedge against inflation. In times when inflation runs at decades high, and when the central bank prepares to tighten the monetary conditions, getting exposure to real estate helps the portfolio navigating rising prices.
One can invest in real estate directly by buying one or more properties. However, the easiest way for the retail investor with little capital is to own shares in publicly listed real estate companies.
Here are four stocks to buy to get exposure to the real estate sector: Simon Properties Group, Realty Income Corporation, Regency Centers Corporation, and National Retail Properties.
Simon Properties Group
Simon Properties Group (NYSE:SPG) is one of the largest real estate companies in the world. It operates like a real estate investment trust, or REIT, and so it distributes most of its income to shareholders in the form of dividends.
The company pays a hefty dividend – the forward dividend yield is 4.81%, and the payout ratio is 61.03%. In the last twelve months, the stock price is up +60.34%, as investors took shelter from rising prices of goods and services.
Realty Income Corporation
Realty Income Corporation (NYSE:O) is a real estate company from San Diego, California, and a member of the S&P 500 Dividend Aristocrats index. It owns thousands of real estate properties and generates its cash flows from long-term leases.
The company’s dividend payout ratio is 86.37%, and it has a track history of 25 years of dividend growth. On top of that, the stock price has been up +21.79% in the last twelve months.
Regency Centers Corporation
Regency Centers Corporation (NASDAQ:REG) develops and operates shopping centers. The stock price has been up +55.35% in the last twelve months, and the company pays a quarterly dividend. The dividend payout ratio is 63.05%, and the five-year dividend growth rate is 3.8%.
National Retail Properties
National Retail Properties (NYSE:NNN) is an American real estate company from Orlando, Florida, investing in high-end real estate properties throughout America.
The stock price has been up +14.98% in the last twelve months, and at the current market price, the company’s market capitalization exceeds $8 billion. Moreover, the dividend payout ratio is one of the highest in the industry, and so is the forward dividend yield of 4.70%.