ARE's Q1 results are likely to be impacted by high interest expenses due to its substantial debt burden.
The market has shifted from tech to defensive stocks, with real estate and consumer staples outperforming due to tariffs and trade wars. US companies with high foreign sales exposure are struggling, while non-US stocks benefit from an international backlash against US tariffs. My buy list is narrowing, focusing on undervalued, high-conviction dividend growth stocks like Blackstone and Alphabet, despite market volatility.
The acquisitions of Alexandria Real Estate and Unilever enhance sector and geographical diversification, increase dividend income capacity, and reduce portfolio volatility, aligning with The Dividend Income Accelerator Portfolio's goals. Alexandria Real Estate offers a strong Dividend Yield [FWD] of 7.16%, robust financials, and is undervalued, making it a strategic addition to our portfolio. Unilever's fair Valuation and low 24M Beta Factor of 0.11 further reduce portfolio volatility and enhance risk-adjusted returns.
Alexandria Real Estate Equities (ARE) saw its shares surge in the last session with trading volume being higher than average. The latest trend in FFO estimate revisions could translate into further price increase in the near term.
Bill Ackman just issued a major warning. Starting a major trade war could lead to significant pain. Here is how I am positioning my portfolio.
The market is crashing. We are playing defense by investing in recession-resistant REITs. I present three of my favorite "buy-the-dip" opportunities.
Economic uncertainty under the new President has led to mixed market reactions, with growth being hit the hardest and some value names suffering as well. The Nasdaq-100 is down ~8% YTD, and the S&P 500 is down ~4% YTD, reflecting muted growth expectations. Current market conditions favor high-quality, income-focused investments, particularly defensive value plays with attractive valuations.
We stayed out of Alexandra Real Estate as we believed the headwinds were too strong to overcome. The stock is lower since then and normally we aim for bargain hunting. We tell you why we are more bearish today than we were 3 months back.
Alexandria Real Estate has become a battleground stock. But it shouldn't be. This is a blue-chip REIT that's dealing with a temporary crisis. As its growth accelerates, I expect up to 50% upside as Alexandria reprices at a more reasonable valuation multiple.
These 2 unloved dividend growth powerhouses could deliver serious upside once Mr. Market wakes up. Both combine aggressive buybacks when their shares trade at deep discounts with consistently impressive dividend growth. Both also have fortress balance sheets and world-class business models.
The real estate sector is off to a strong start in 2025, outperforming the S&P 500 (^GSPC 0.64%) by about 6 percentage points through mid-March. However, not all real estate investment trusts (REITs) have outperformed, and there are some excellent buying opportunities for patient long-term investors.
Some REITs are truly exceptional. So much so that they could make sense for most investors. I present two such exceptional REITs.