Real estate has been one of the top-performing assets of the last 20 years.
It's a cornerstone investment of the world's wealthiest people. It's a safe asset that brings inflation protection, appreciation upside, and - in many cases - outstanding cash flow.
Unfortunately, retail investors can't access top-performing real estate assets that are reserved for accredited investors.
One secret that too many retail investors fail to see is the tremendous opportunity in Real Estate Investments Trusts (REITs).
REITs offer steady cash flow and tax benefits - plus, the top REITs offer substantial price appreciation as well. That gives you the income and growth potential you won't find in the bond market.
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It's no wonder why 80 million Americans already own REITs in one way or another.
But finding the top REITs to buy is a whole other matter. Today, we're going to show you how to identify the best REIT out of the 1,100 registered options across the United States.
Get Ready for the 5G Rollout
[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]Uniti Group Inc. (NASDAQ: UNIT) is one of the best values in the market given the future of 5G telecommunications.
This REIT has pulled back substantially over the last year due to the fallout of Windstream's bankruptcy. The bankrupt firm accounted for a large percentage of Uniti Group's cash flows.
But the stock is turning the corner. That's because Uniti is shifting its focus to a very niche area of the REIT industry. The telecom REIT has spent years focusing on fiber-optic networks, buying fiber assets to connect cell towers with the wired Internet.
Now, Uniti is a growing player in the cell tower REIT market, which means it generates cash flow from assets tied to the booming wireless telecom industry.
Here is how cell tower REITs work: These companies own communications towers across the country. The towers host the cellular network equipment of large telecom giants like AT&T Inc. (NYSE: T), Verizon Communications Inc. (NYSE: VZ), and T-Mobile US Inc. (NYSE: TMUS). And the REIT collects income from these firms as the telecom giants expand their map.
With the advent of 5G technology on the horizon, Uniti Group stands to become a major player in building out the next generation of wireless technology. Here's why...
In recent years, as technology has grown more sophisticated, these REITs have increasingly added what are known as fiber and small-cell networks. These assets are valuable because they can build systems with 5G speeds that don't require significant infrastructure or towers.
Thanks to the ever-increasing demand for cell-service coverage, cell tower REITs get to set the prices for telecom giants. This sector is one of the few industries where the real estate operator gets to set the price, a factor that dramatically improves the predictability of cash flow and revenue.
With hyper-competition over 5G on the horizon, Uniti can name its price and ensure long-lasting cash flow to benefit shareholders.
In addition to the 5G growth, our proprietary stock scoring system is signaling that UNIT is a "Strong Buy" in today's market.
Here's why Uniti Group is poised for a big run in 2020...
Tapping into the Money Morning Stock VQScore
To determine the best REIT to buy, we use our secret weapon - the Money Morning Stock VQScore™ system.
This proprietary algorithm breaks down every profitable stock available on the market. Using a combination of fundamental and technical analysis, the VQScore tells you when to buy (or sell) a stock.
It values a stock's earnings power and whether EPS is accelerating or decelerating. Then, it compares that to the momentum of the recent demand for the company's shares and whether that's increasing or decreasing.
In turn, it assigns every REIT a score from 0 to 4. The higher the score, the more likely the stock is to break out in the months ahead.
This is the single most powerful tool that predicts the breakout of a stock. The reason it's so powerful for REITs is that it identifies the companies that are on the verge of massive surges in cash flow, customer demand, and share price appreciation.
Uniti has a 4.9 rating, signaling it's one of the top picks for 2020.
UNIT pays a solid 2.8% dividend. And right now, shares trade for just $7. But there is a real case that the sum of this company's parts - a fair valuation - is roughly $14 per share.
That would represent a 100% gain over the next 12 months as investors shift expectations for UNIT from an income play to a deep-value purchase.
Time Is Running Out to Claim Your Stake in This Projected $12 Trillion Opportunity
The major tech breakthrough that is 5G is only just starting to catch on. But hear us when we say that when it takes off, it will change the world as you know it.
We have been talking about 5G since it was barely more than an idea. But now that it's making headlines, it's preparing for the largest - and what could be the most profitable - breakout in our lifetime.
It's currently being picked up by the largest mobile phone providers in the game, including Verizon, AT&T, and Sprint...
You can still take advantage of it for under $6 a share, but trust us, you won't see this price much longer.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.