CNWGY - 2 Ridiculously Cheap Income Stocks for 2023 and Beyond
2023-05-02 06:22:00 ET
It's no secret that many dividend stocks have been beaten down over the past year or so. Even in cases where the underlying business is solid and performing well, rising interest rates tend to put pressure on income-focused investments. This is especially true in the real estate sector, as financing properties becomes more expensive and the rising-rate environment hurts commercial property valuations.
Having said that, two beaten-down income stocks that look especially attractive right now are real estate investment trusts , or REITs: EPR Properties (NYSE: EPR) and Empire State Realty Trust (NYSE: ESRT) . Here's a look at how these businesses are doing and why they could be worth a closer look for long-term value investors.
Let's start with the bad. EPR Properties is an experiential REIT, and while much of its tenant base is doing exceptionally well, one of its largest tenants -- Cineworld 's (OTC: CNWGY) Regal Entertainment Group -- is in the middle of bankruptcy proceedings. As a result, EPR's stock plunged in late 2022 when the bankruptcy was announced and is still trading at a depressed valuation of less than 10 times funds from operations (FFO), the real estate equivalent of earnings.
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2 Ridiculously Cheap Income Stocks for 2023 and Beyond