On Oct. 30, the Fed slashed rates for the third time this year. Now, if you're looking to save like the days of higher rates, you're out of luck. But it's not all bad news. In fact, the best REIT to buy now is one that will pay an impressive 5% dividend yield.
Following the Fed's FOMC meeting last month, the central bank issued a statement that essentially declared the end of inflation. In short, it said that the public shouldn't expect interest rate hikes anytime soon.
Now that the Fed has created a brand-new policy to get used to, investors will need to change their approach to generating returns.
If the Fed is right and inflation is truly "dead," we may see a correction in the stock market this year. But where will investors make money if this happens?
The answer, without a doubt, is by investing in real estate investment trusts (REITs).
A REIT gives you a twofold benefit - stock appreciation plus yield income.
Pick the right investment, and the stock's share price could outperform the broader market, netting you substantial gains. Further, a REIT with a robust yield will pay steady income to either reinvest or put in the bank.
That income can often double or even triple the bond market going rate at any given time.
It's a mystery why there hasn't been a flood of investment dollars into the REIT sector recently, but something else is telling.
When the Fed issued its latest policy statement, the overall market reacted negatively. At the same time, the top REITs to buy either held steady or increased in value.
If you haven't added any REITs to your portfolio yet, particularly if you are looking for income stocks, you should do it now.
The proprietary Money Morning Stock VQScore™ has just uncovered one of the top REITs to buy now, which will pay you a dividend of 5%.
This is a secure stock that will give you income-producing gains in an environment where investors are searching high and low for exactly this.
The Best REIT to Buy Now Pays a 5% Yield
[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]Brandywine Realty Trust (NYSE: BDN) is one of the best REITs to buy. It's a Philadelphia-based REIT focused on owning and operating office buildings in the Washington, D.C., Philadelphia, and Austin markets.
It has grown into one of the largest full-service, publicly traded real estate firms in the United States. Its current portfolio consists of 178 properties and 24.6 million square feet of space.
The Fed stated it doesn't plan to lower interest rates again, and this is a fact that matters for this REIT.
Its strong portfolio of commercial real estate properties is near capacity. As of its third-quarter results, more than 93% of its portfolio was leased and occupied.
Of course, it might have some empty units in certain spots, but those are going to be filled quickly as the economy remains strong. The company also boasts a healthy tenant retention rate of 72%.
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Right now, Brandywine is paying shareholders a 5% dividend yield. This is a big deal if you consider the fact that government rates continue to drop.
Analysts predict this stock will earn $0.14 per share by the end of 2019 or early 2020.
This is a stable investment that should give investors a sense of comfort. It also shows the 5% yield the company pays will remain a constant for now.
We think Brandywine is likely to pull in investors looking for income-paying stocks. As interest rates continue to take a beating, stocks like this one will appreciate thanks to new investors coming on board.
In this market environment, REITs are not only the top choice but one of the only sound ones. Brandywine is our tip pick for a REIT at $15.02 per share with a strong dividend of over 5%.
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