PLD - These 3 Dividend Stocks Are Set to Soar in 2024 and Beyond
2024-01-28 05:22:00 ET
The past couple of years have been tough on the real estate investment trust (REIT) sector. Rising interest rates increased their borrowing costs. On top of that, higher rates weighed on the value of REIT share prices to push up their dividend yields. Those higher yields were necessary to compensate investors for the companies' higher risk profiles compared to lower-risk yield-focused investments like bank CDs and bonds.
However, that headwind should fade this year as the Federal Reserve starts cutting rates. That catalyst should drive up shares of most REITs . On top of that, several REITs have specific factors that could power additional upside. Prologis (NYSE: PLD) , Mid-America Apartment Communities (NYSE: MAA) , and EPR Properties (NYSE: EPR) stand out for their potential to soar in 2024 and beyond.
Shares of Prologis have lost a quarter of their value from their peak in 2022, pushing its dividend yield up to 2.7%. In addition to rising interest rates, the industrial REIT has been under pressure on concerns that demand for warehouse space would slow. While that's happening, it's slowing from a blistering pace to a more normalized environment.
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These 3 Dividend Stocks Are Set to Soar in 2024 and Beyond