Investors looking to weather a volatile market often rely on the bonds for steady returns. But with Aug. 28th's yield curve inversion, yields on the 10-year dropped from 2.85% to 1.47% in just a year.
While investors are understandably worried, we have a way to weather the current volatile market. In fact, it's why we're bringing you one of the best REITs to invest in.
Real Estate Investment Trusts (REITs) are great in this kind of market for three reasons. REITs provide investors with solid cash flow as well as tax benefits. Beyond that, the best REITs tend to offer a great upside too.
In fact, since 1980, the annualized returns for REITs comes out to about 11.61%. To put that into perspective, the annualized return for the S&P 500 was just 8.39% in the same amount of time.
And while that doesn't sound all that impressive, just think about it in another way. Let's say you invested $10,000 in both the S&P 500 and a REIT back in 1980.
Today, your S&P 500 investment would be worth $213,594, while your investment in a REIT would now be worth over three times more at $649,707.
And that's just one example of the kinds of returns REITs could generate.
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This gives investors an opportunity to benefit from a greater level of growth and income that you can't find with bonds. So, it's no surprise that 80 million U.S. citizens have investments in REITs in some capacity.
But finding some of the best REITs to invest in can be challenging for income-seeking investors. In the United States alone, there are over 1,100 registered REITs. On top of that, these REITs also have over 511,000 different properties.
That's way more REITs to sift through than most of us have time for.
Fortunately, that's what we created our Money Morning Stock VQScore™ tool to do. This proprietary software finds only the best stocks with breakout potential.
We're using it today to help you find one of the best REITs to invest in. And the best REIT we found offers a great 6.14% dividend yield on top of its growth potential.
Check it out...
One of the Best REITs to Invest in Yields a Solid 6.14%
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One of the Best REITs to invest in is Brixmor Property Group Inc. (NYSE: BRX). This is a U.S.-based REIT that invests in retail spaces like shopping centers across the United States.
Brixmor was originally an Australian shopping mall company that expanded operations to California in 2003.
Over the years, Brixmor amassed properties in over 400 locations. This caught the attention of the multinational private equity and asset management firm Blackstone Group Inc. (NYSE: BX). Blackstone purchased Brixmor for $9.4 billion in 2013.
Two years later, Brixmor started trading publicly on the New York Stock Exchange under the ticker "BRX."
Between 2013 and 2016, BRX's shares went up 40% as the company steadily grew its revenue by almost 12%.
But following an accounting scandal in April 2016, Blackstone Group cashed out of Brixmor and sold its 42.4 million shares - removing its stake in Brixmor.
This tanked Brixmor's share value 51% to $14.09 for the next two years. While that doesn't sound great, it's actually an excellent buy right now.
Even with a major scandal, the company has managed to grow its revenue practically every year. In fact, by the end of 2018, its revenue was still up 8% from 2013. And between 2015 and 2018, Brixmor's net income jumped from $193.5 million to $365.9 million.
That's a whopping 90% increase despite the controversy.
At the end of 2018, Brixmor's report showed it owned 75 million square feet of property with 475 shopping centers. Its properties in California, Texas, and Florida make up 11% of the REIT's total revenue.
But it also has big-name tenants like LA Fitness, Planet Fitness Inc. (NYSE: PLNT), CVS Health Corp. (NYSE: CVS), Target Corp. (NYSE: TGT), Walmart Inc. (NYSE: WMT), Bed Bath & Beyond Inc. (NASDAQ: BBBY), Home Depot Inc. (NYSE: HD), Nordstrom Inc. (NYSE: JWN), Kohl's Corp. (NYSE: KSS), and many more major companies.
This has helped Brixmor beat investor earnings expectations for four quarters straight. And it's forecast to continue.
In fact, this REIT's current share value is $18.29. And with the company's momentum over the last year, analysts think it'll continue to go up to $23 per share. That's 26% upside over the next 12 months - even when you take the yield curve inversion into account. And with a VQScore of 4.3, we think it could shoot even higher.
To top it all off, it offers a whopping 6.14% dividend yield to its shareholders.
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About the Author
Daniel Smoot is a Baltimore-based editor who helps everyday investors with stock recommendations and analysis. He regularly writes about initial public offerings, technology, and more. He earned a Bachelor's degree from Towson University.