Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Investors expect interest rates to remain stable or decline, benefiting REITs by lowering their cost of capital and making dividends more competitive. The Vanguard Real Estate ETF shows a bullish pattern with potential for a 40% run-up over the next few years, assuming the pattern holds. This article identifies two REITs as strong buys due to solid fundamentals, attractive valuations, and steady growth prospects, supported by robust balance sheets, competitive yields, and meaningful macro tailwinds.
After an incredible run for the S&P 500 in 2023 and 2024, many across Wall Street feel that the momentum can carry through to 2025.
I learned the importance of risk control and diversification after losing my entire net worth due to poor investment decisions and a failed partnership. Avoid high-risk REITs like Sachem Capital and Office Properties Income Trust, which have shown significant dividend cuts and poor performance. Apple Hospitality REIT offers a diversified portfolio of upscale hotels with strong growth potential, trading at attractive valuations and a solid dividend yield.
Investors love dividend stocks, especially the high-yield variety, because they offer a significant income stream and have massive total return potential.
About a year ago, I published two proposed portfolios: Cash COWs, (high-yield and strong dividend safety), and Buried Treasures, (undervalued, high-yielding, with strong balance sheets and growth). The Cash COWs portfolio, selected for high yield and dividend safety, delivered a 6.91% cash yield with no dividend cuts, outperforming the VNQ by 242 bps. Despite not matching the S&P 500 or NASDAQ, Cash COWs performed well against the Dow Jones, S&P 400, and S&P 600 indices.
During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.
Apple Hospitality REIT, Inc. (NYSE:APLE ) Q4 2024 Earnings Conference Call November 5, 2024 10:00 AM ET Company Participants Kelly Clarke - VP of IR Justin Knight - CEO Liz Perkins - CFO Conference Call Participants Dori Kesten - Wells Fargo Austin Wurschmidt - KeyBanc Capital Markets Tyler Batory - Oppenheimer & Co. Inc. Jay Kornreich - Wedbush Securities Michael Bellisario - Baird Chris Darling - Green Street Ken Billingsley - CompassPoint Operator Greetings, and welcome to the Apple Hospitality REIT Third Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode.
While the top- and bottom-line numbers for Apple Hospitality REIT (APLE) give a sense of how the business performed in the quarter ended September 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Apple Hospitality REIT (APLE) came out with quarterly funds from operations (FFO) of $0.45 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.45 per share a year ago.
REIT yields are becoming more competitive, especially with the likelihood of interest rate cuts and low inflation on the horizon. This article identifies 35 equity REITs yielding 4.75% or better and at least 20% undervalued, narrowing down to 11 based on dividend safety, balance sheet quality, and growth projections. Avoid high-yield "sucker" stocks and companies with declining revenues or weak balance sheets to minimize risk and ensure stable returns.
The market is expensive, trading at 21x forward EPS, 1.2 standard deviations above its 30-year average. The implied five-year annualized return is expected to be below 5% at current valuations. NewLake Capital Partners and Apple Hospitality REIT offer income and growth potential in a challenging market.