PLD - Want Decades of Passive Income? 3 Stocks to Buy Now
2023-12-15 05:15:00 ET
Rising interest rates have been a material headwind to real estate investment trusts (REITs) over the past year or so. That makes sense since higher yields make investments like CDs more competitive for income-oriented investors.
Interest rates also impact the cost of capital for REITs. But the property markets have adjusted to rising rates before, and investor worries are likely to be overblown if you have a long-term investment horizon. This is why you might want to jump on industry-leading REITs like Realty Income (NYSE: O) , Prologis (NYSE: PLD) , and AvalonBay Communities (NYSE: AVB) while there's still time (their stock prices are already starting to recover).
Realty Income's market cap is roughly $39 billion, which is about three times larger than its next-closest peer. Add in an investment-grade-rated balance sheet , and Realty Income's size is a material competitive advantage.
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Want Decades of Passive Income? 3 Stocks to Buy Now