My journey on Seeking Alpha began after personal financial setbacks, but persistence and relevance helped me build a strong community and career. I highlight Iron Mountain, Agree Realty, and STAG Industrial as top REIT picks, emphasizing their strong business models and growth potential. Iron Mountain's shift to a REIT and focus on data centers has driven significant growth, though shares are currently overvalued.
Are you shopping around for a new dividend payer? Perhaps you've heard some of the recent buzz suddenly surrounding a relatively small company called Agree Realty (ADC 1.05%).
Dividend stocks come in all different forms. Some companies offer higher dividend yields along with higher risk profiles, while others have lower yields but deliver more growth.
The recent market selloff, driven by the Fed's revised rate-cut forecast, has made high-quality REITs attractively priced for long-term dividend growth investors. Despite poor stock price performance, REITs have strong fundamentals, with favorable earnings yield spreads and dividend yields compared to the broader market. REITs are undervalued due to being treated as bond proxies, but their strong commercial real estate fundamentals and historical outperformance post-Fed rate cuts suggest a buying opportunity.
In 2022 and 2023, rising interest rates drove up the yields of low-risk fixed income investments like Treasury bills, bonds, and CDs, which made them more appealing than dividend stocks. But as interest rates decline, those fixed income yields are shrinking and driving more investors back toward higher-yielding dividend stocks.
Are you looking for reliable long-term investment income? Consider starting your search here, with a closer look at three great dividend stocks that would be at home in nearly any investor's portfolio.
Agree Realty (ADC 1.05%) has been a popular stock in 2024, with a share price gain of more than 15%. That's roughly three times the return of the average real estate investment trust (REIT).
Interested in the stock market, but don't want to worry about chasing market gains?
Some REITs suffered a dip in recent weeks. As a result, they have become cheap again. We highlight 2 of our favorite buy-the-dip opportunities.
Mersana Therapeutics is developing novel antibody-drug conjugates targeting a heretofore untapped immune checkpoint, as well as HER2 from another angle. The company has an operational runway of 6-7 quarters excluding collaboration revenues. The promise of phase 1 trial data gives us a chance to see if Mersana's ADC platform can make drugs that are more tolerable than those being developed by competitors.
Dividend growth stocks, though not often the most exciting, can offer the potential for growing wealth and passive income over the long run. Every month, we screen for potential opportunities, starting with initial parameters, including dividend safety, growth, and consistency. Of course, further due diligence is essential; these initial screenings are just that “initial” and highlight potential names worth considering further but require further due diligence.
Agree Realty and VICI Properties are high-quality REITs with strong fundamentals and impressive total returns, but currently offer little margin of safety due to their run-up in share prices. Investing with a margin of safety helps manage market volatility; for example, my cost basis of $53 for Realty Income has helped me stomach volatility and the stock's underperformance. I recommend assigning stocks specific roles in your portfolio; for example, Starwood Property for stable dividends, PepsiCo for moderate growth, and Visa for high growth, balancing income and growth.