Real estate investment trusts (REITs) are companies that own, operate, or finance income-generating real estate properties, such as office buildings, apartments, shopping centers, and warehouses. In addition, REITs are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends, making them popular investments for income-seeking investors.
Next, REITs offer investors several advantages, including the potential for high dividends, diversification, and professional management of real estate assets. REITs also provide investors with access to a wide range of real estate assets, including commercial, residential, and industrial properties, which may not be easily accessible to individual investors.
However, REITs also come with some risks, including the potential for fluctuations in property values, changes in economic conditions, and changes in tenant demand. It is important for investors to carefully consider these risks before investing in REITs. As with any investment, it is also important to diversify your portfolio to spread risk. With that being said, here are two REIT stocks to watch in the stock market today.
REIT Stocks To Buy [Or Avoid] Today
Digital Realty Trust (DLR)
Leading off, Digital Realty Trust (DLR) is a global REIT that owns, acquires, and develops data centers and other properties for use by technology and digital media companies. The company has a diverse portfolio of properties located in major markets around the world, including North America, Europe, and Asia.
One of the main reasons to watch Digital Realty Trust is its attractive dividend yield. In fact, at the end of November, the company’s Board of Directors declared its 4th quarter 2022 cash dividend. In detail, the company announced it has authorized a cash dividend of $1.22 per share on common stock. Currently, DLR has an annual dividend yield of 4.89%.
Shares of DLR stock have been hit hard in 2022 so far, as shares are down 43.09% year-to-date. Meanwhile, as of Monday morning, DLR stock is red off the open by 1.77% at $99.75 a share.
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Public Storage (PSA)
Next, Public Storage (PSA) is one of the largest REITs in the world, with a portfolio of more than 2,500 self-storage properties in the United States, Europe, and Latin America. The company has a strong presence in the self-storage industry, with a market share of approximately 20%. Additionally, as of today, PSA offers its shareholders a quarterly dividend of $2.00, which reflects a 2.82% annual dividend yield.
At the beginning of last month, the company reported better-than-expected third-quarter 2022 financial results. In detail, PSA reported Q3 2022 earnings of $4.13 per share and revenue of $1.1 billion for the quarter. What’s more, the company reported a 21.6% in revenue versus the same period, a year prior.
Year-to-date, shares of PSA stock are down 22.27% so far in 2022. Moreover, during Monday’s early morning trading session, PSA stock is trading slightly lower by 0.90% on the day at $283.95 a share.
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