6 Best REITs To Buy And Hold Forever

00:16:21
https://www.youtube.com/watch?v=YF7vaYWVF8M

Summary

TLDRThis video emphasizes the benefits of incorporating real estate investment trusts (REITs) into investment portfolios to balance stability and growth. It introduces six top REITs starting with Agree Realty Corporation (ADC), known for leasing to major, low-risk retail tenants, and Essential Properties Realty Trust (EPRT), praised for its single-tenant focus which reduces operational risks. Rexford Industrial Realty (REXR) offers strategic investments in Southern California’s industrial market. American Tower Corporation (AMT) focuses on telecommunication infrastructure and stands to gain from 5G expansion. Extra Storage Space (EXR) and CubeSmart (CUBE) target the resilient self-storage sector, highlighting their strong dividend growth rates. The video illustrates investment returns, showing the potential for a $10,000 investment to grow significantly through these reliable options with high dividend yields and growth potential.

Takeaways

  • 📈 REITs offer stable, income-generating investments.
  • 🏢 Agree Realty focuses on high-credit retail tenants.
  • 🔑 Essential Properties minimizes risks with single-tenant leases.
  • 🏭 Rexford capitalizes on industrial demand in California.
  • 📡 American Tower benefits from telecom infrastructure growth.
  • 📦 Extra Storage gains from the self-storage industry's resilience.
  • 🚀 CubeSmart shows robust dividend and growth prospects.
  • 💸 Potential for significant long-term returns with REITs.
  • ⚖️ Diversification through real estate investments.
  • 🪜 Each REIT offers unique growth and stability features.

Timeline

  • 00:00:00 - 00:05:00

    Investing in real estate can stabilize a portfolio, and this video explains how REITs (Real Estate Investment Trusts) allow investors to participate in the real estate market without needing huge capital or managing properties themselves. The video introduces REITs as entities that own or finance real estate, requiring them to distribute a significant portion of income as dividends, providing steady income for investors. The video lists several REITs that are ideal for long-term investment, starting with Agree Realty Corporation (ADC), emphasizing its focus on quality tenants leading to lower risk. ADC offers a dividend yield of 4.12% and shows significant potential for capital appreciation over 10, 20, and 30 years, making it a worthwhile consideration.

  • 00:05:00 - 00:10:00

    Essential Properties Realty Trust (EPRT) is highlighted next for its focus on single-tenant properties, reducing operational risk and maintaining steady income. EPRT offers a 3.67% dividend yield with strong share price growth, making it appealing for long-term investors seeking income and growth. The video elaborates on the value projection of a $10,000 investment in EPRT, showing significant growth potential over 30 years. Following EPRT, Rexford Industrial Realty (REXR) is introduced, specializing in industrial properties in high-demand areas like Southern California. Despite a modest dividend yield of 3.21%, REXR boasts strong dividend growth and share price appreciation, offering potential for remarkable gains over a 30-year period.

  • 00:10:00 - 00:16:21

    American Tower Corporation (AMT) shifts focus to infrastructure, particularly telecommunications. As 5G expands, AMT could benefit greatly, offering an attractive dividend growth rate despite a lower yield of 2.85%. The potential returns of a long-term investment in AMT are significant, particularly in the context of global wireless communication demands. Extra Space Storage (EXR) enters as a leader in self-storage, showing strong resilience and financial performance. EXR offers a 3.64% dividend yield and considerable dividend growth, providing substantial income and growth potential over time. Finally, Cubesmart (CUBE) also focuses on self-storage, with an impressive dividend growth rate and solid share price appreciation, making it the top recommendation for both income and growth-oriented investors.

Mind Map

Video Q&A

  • What are REITs?

    REITs, or Real Estate Investment Trusts, are companies that own, operate, or finance income-generating real estate, allowing investors to earn dividends from real estate investments without buying or managing properties.

  • What are the benefits of investing in REITs?

    REITs provide a steady income stream through dividends, offer portfolio diversification, and are easily accessible as they can be bought and sold like stocks.

  • Why is Agree Realty Corporation a good investment?

    Agree Realty Corporation is a solid investment due to its focus on leasing properties to high-credit tenants like Walmart and Best Buy, reducing risks and ensuring stable returns.

  • What makes Essential Properties Realty Trust stand out?

    Essential Properties Realty Trust stands out due to its focus on single-tenant properties, reducing operational risks and offering strong growth in dividends and share prices.

  • Why invest in Rexford Industrial Realty?

    Investing in Rexford is advantageous due to its strategic focus on high-demand industrial properties in Southern California, offering strong growth potential.

  • What is special about American Tower Corporation?

    American Tower Corporation is a leading infrastructure REIT focusing on telecommunications towers, benefiting from the expansion of wireless technologies like 5G.

  • How does Extra Storage Space maintain resilience?

    Extra Storage Space remains resilient by focusing on self-storage, a sector that continues to grow due to consistent demand despite economic fluctuations.

  • Why is CubeSmart a top pick?

    CubeSmart is a top pick because of its strong dividend yield and growth in the self-storage sector, benefiting from rising residential and commercial storage demands.

  • What potential returns can investors expect from REITs?

    Depending on the REIT and time frame, a $10,000 investment could grow significantly, with some REITs offering returns that exceed $1.5 million over 30 years.

  • How do REIT dividends compare to other investments?

    REIT dividends are often higher than many other investments due to legal requirements that they distribute at least 90% of taxable income to shareholders.

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  • 00:00:00
    investing can feel like a roller coaster
  • 00:00:02
    with UPS downs and unexpected twists but
  • 00:00:05
    what if I told you there's a way to add
  • 00:00:07
    some stability to your portfolio without
  • 00:00:11
    sacrificing growth the answer is real
  • 00:00:14
    estate and you don't need Millions to
  • 00:00:16
    invest that's where REITs real estate
  • 00:00:19
    investment trusts come in in this video
  • 00:00:23
    I'll be showing you and John's six REITs
  • 00:00:26
    that are built for the Long Haul I'll
  • 00:00:28
    explain why these are the best reads to
  • 00:00:30
    invest in and how much you can earn from
  • 00:00:33
    each with a $10,000 investment over 10
  • 00:00:36
    20 and 30 years in the end I'll show you
  • 00:00:40
    a wreath that has the potential to turn
  • 00:00:41
    a $10,000 investment into over $ 1.5
  • 00:00:46
    million and pay over
  • 00:00:48
    $114,000 per month in dividends but
  • 00:00:51
    first what are REITs all right before we
  • 00:00:55
    jump into the specifics of our top six
  • 00:00:57
    picks let's take a moment to break down
  • 00:01:00
    what exactly a Reit is and why these
  • 00:01:02
    investment vehicles might be the perfect
  • 00:01:04
    fit for your portfolio a real estate
  • 00:01:07
    investment trust or Reit is a company
  • 00:01:09
    that owns operates or finances income
  • 00:01:12
    generating real estate this can include
  • 00:01:15
    anything from shopping malls and Office
  • 00:01:16
    Buildings to apartments and hospitals
  • 00:01:19
    the best part you can invest in these
  • 00:01:21
    large-scale properties without having to
  • 00:01:24
    manage them yourself REITs pull capital
  • 00:01:27
    from many investors to purchase and
  • 00:01:29
    manage AG these properties by law they
  • 00:01:32
    must distribute at least 90% of their
  • 00:01:35
    taxable income as dividends to
  • 00:01:37
    shareholders this means you get a steady
  • 00:01:39
    stream of income without lifting a
  • 00:01:41
    finger REITs offer an easy way to
  • 00:01:44
    diversify your Investments as you're
  • 00:01:46
    spreading your money across a range of
  • 00:01:48
    properties rather than betting on a
  • 00:01:50
    single one plus they're accessible you
  • 00:01:52
    can buy and sell reats just like stocks
  • 00:01:55
    now that you got the basics next up are
  • 00:01:58
    six reats ranked from good to absolute
  • 00:02:01
    best rats based on their potential to
  • 00:02:03
    add value to your portfolio let's kick
  • 00:02:07
    things off with agree realy Corporation
  • 00:02:10
    ticker symbol
  • 00:02:12
    ADC if you're looking for a reliable
  • 00:02:14
    long-term investment in the real estate
  • 00:02:16
    sector this one should be on your radar
  • 00:02:19
    agree realy is a well-established reate
  • 00:02:22
    that focuses on owning and developing
  • 00:02:24
    properties net least to Major retail
  • 00:02:27
    tenants what's great about ADC is it's
  • 00:02:30
    focus on quality over quantity they
  • 00:02:33
    target High credit tenants like Walmart
  • 00:02:35
    Best Buy and Dollar General which means
  • 00:02:38
    the risk of default is relatively low
  • 00:02:40
    this focus on top tier clients is a key
  • 00:02:43
    factor that sets ADC apart from many
  • 00:02:46
    other reats on the market providing an
  • 00:02:48
    added layer of security for your
  • 00:02:50
    investment they currently offer a
  • 00:02:52
    dividend yield of
  • 00:02:53
    4.12% backed by a consistent dividend
  • 00:02:56
    growth rate of
  • 00:02:58
    5.86% combine that with an average share
  • 00:03:00
    price appreciation of 99.46% and you've
  • 00:03:03
    got a recipe for long-term success but
  • 00:03:06
    what does this mean for your investment
  • 00:03:08
    let's say John starts with
  • 00:03:10
    $10,000 after one year his investment
  • 00:03:13
    could be worth
  • 00:03:15
    $1,358 fast forward 10 years and that
  • 00:03:18
    same investment could grow to
  • 00:03:20
    $33,860
  • 00:03:22
    after 20 years you're looking at
  • 00:03:25
    $14,100 and if you're in it for the long
  • 00:03:29
    haul at after 30 years your investment
  • 00:03:31
    has the potential to reach
  • 00:03:34
    $299,700 paying around
  • 00:03:38
    $3,846 in annual dividends when you add
  • 00:03:41
    up the total capital appreciation and
  • 00:03:43
    dividend reinvestment the total value
  • 00:03:46
    added to your investment would be around
  • 00:03:51
    $289,700 so why should you consider
  • 00:03:53
    agree realy for your portfolio it's
  • 00:03:56
    simple of course no investment is
  • 00:03:58
    without its risks the real estate market
  • 00:04:00
    can be volatile and economic downturns
  • 00:04:03
    can impact even the most stable tenants
  • 00:04:05
    but with adc's strong portfolio and
  • 00:04:08
    focus on essential retail it's well
  • 00:04:11
    positioned to weather most economic
  • 00:04:13
    storms just remember to keep an eye on
  • 00:04:15
    the market and adjust your investment
  • 00:04:17
    strategy as needed next up at number
  • 00:04:20
    five on the list is essential properties
  • 00:04:23
    realy trust ticker symbol
  • 00:04:26
    eprt this Reit is a newer player in the
  • 00:04:29
    Market but don't let that fool you it's
  • 00:04:31
    quickly become a standout option for
  • 00:04:34
    long-term investors eprt focuses on
  • 00:04:37
    single tenant net leased commercial
  • 00:04:40
    properties which means they lease out
  • 00:04:42
    properties to individual tenants and
  • 00:04:44
    those tenants are responsible for most
  • 00:04:46
    of the property's operating expenses
  • 00:04:48
    this setup is great for minimizing risk
  • 00:04:51
    while ensuring a steady income stream
  • 00:04:54
    one of the things that makes eprt match
  • 00:04:56
    the REITs is its growth potential
  • 00:04:59
    current ly eprt offers a dividend yield
  • 00:05:02
    of
  • 00:05:02
    3.67% backed by a dividend growth rate
  • 00:05:05
    of
  • 00:05:06
    5.7% additionally epr's average share
  • 00:05:09
    price appreciation of
  • 00:05:11
    15.8% is one of the highest among its
  • 00:05:14
    class making it a solid choice for
  • 00:05:16
    investors looking for both income and
  • 00:05:19
    Capital Growth now let's break down what
  • 00:05:22
    this could mean for your investment if
  • 00:05:24
    you invest $10,000 in eprt today after
  • 00:05:28
    one year that investment could be worth
  • 00:05:32
    $1,885 fast forward 10 years and your
  • 00:05:35
    investment could grow to
  • 00:05:37
    $50,605
  • 00:05:39
    you're looking at a significant increase
  • 00:05:41
    to
  • 00:05:43
    $225,100 and if you hold on for 30 years
  • 00:05:47
    your investment could soar to
  • 00:05:52
    $952,500 pay
  • 00:05:54
    $1,686 in annual dividends when you
  • 00:05:57
    factor in the total capital appreci app
  • 00:05:59
    ation and dividend reinvestment the
  • 00:06:01
    total value added to your investment
  • 00:06:03
    would be an impressive
  • 00:06:17
    $942,000 investment into over $1.5
  • 00:06:21
    million and pay over
  • 00:06:23
    $114,000 per month in dividends back to
  • 00:06:26
    eprt why should you consider essential
  • 00:06:29
    properties realy trust for your
  • 00:06:32
    portfolio first its focus on single
  • 00:06:35
    tenant net leased properties reduces
  • 00:06:37
    operational risk making it a safer bet
  • 00:06:40
    in the often volatile real estate market
  • 00:06:42
    second its strong dividend growth rate
  • 00:06:44
    combined with high share price
  • 00:06:46
    appreciation offers The Best of Both
  • 00:06:48
    Worlds income and growth this makes eprt
  • 00:06:52
    particularly attractive for investors
  • 00:06:55
    who are patient and looking to maximize
  • 00:06:57
    their returns over the long term
  • 00:07:00
    moving on to our fourth reat which is
  • 00:07:03
    Rexford industrial realy ticker symbol
  • 00:07:07
    rexr this Reit specializes in industrial
  • 00:07:11
    properties particularly in Southern
  • 00:07:13
    California one of the most Supply
  • 00:07:15
    constrained industrial real estate
  • 00:07:17
    markets in the United States rexr
  • 00:07:20
    focuses on high demand infill industrial
  • 00:07:23
    properties which are critical for
  • 00:07:25
    businesses that need proximity to large
  • 00:07:27
    consumer bases making it a high highly
  • 00:07:29
    Strategic investment one of the standout
  • 00:07:32
    features of rexr is its strong growth
  • 00:07:35
    metrics currently it offers a dividend
  • 00:07:37
    yield of
  • 00:07:38
    3.21% while that may not seem
  • 00:07:41
    extraordinary at first glance it's
  • 00:07:43
    important to look deeper rexr has a
  • 00:07:46
    dividend growth rate of
  • 00:07:49
    13.49% which is incredibly robust
  • 00:07:52
    combine this with an average share price
  • 00:07:54
    appreciation of
  • 00:07:56
    13.56% and you're looking at a reate
  • 00:07:58
    that can deliver for both income and
  • 00:08:01
    capital gains so let's break this down
  • 00:08:03
    with some numbers if you were to invest
  • 00:08:05
    $10,000 in rexr today after 1 year your
  • 00:08:10
    investment could be worth
  • 00:08:13
    $1,677 after 10 years that investment
  • 00:08:16
    could grow to
  • 00:08:19
    $47,900 years and your investment could
  • 00:08:22
    be worth an impressive
  • 00:08:25
    $221,300 and if you're patient enough to
  • 00:08:28
    hold for 30 years years you're looking
  • 00:08:30
    at a potential value of$ 1,
  • 00:08:35
    38,39 after 30 years your dividends
  • 00:08:37
    could total approximately
  • 00:08:40
    $27,988 annually translating to a
  • 00:08:43
    monthly income of around
  • 00:08:46
    $2,332 when you add the total capital
  • 00:08:48
    appreciation and dividend reinvestments
  • 00:08:51
    the total value added to your investment
  • 00:08:54
    would be a remarkable $1,283
  • 00:08:59
    Now we move on to the top three stocks
  • 00:09:02
    to buy and hold forever at number three
  • 00:09:05
    we have American Tower Corporation
  • 00:09:08
    ticker symbol
  • 00:09:09
    AMT unlike the previous REITs which
  • 00:09:12
    focus on retail and Industrial
  • 00:09:14
    properties AMT is a leader in the
  • 00:09:17
    infrastructure Reit space specifically
  • 00:09:20
    in
  • 00:09:20
    telecommunications American Tower owns
  • 00:09:23
    and operates Wireless and broadcast
  • 00:09:25
    communication Towers a critical
  • 00:09:27
    component of the global digital
  • 00:09:29
    infrastructure with the world
  • 00:09:31
    increasingly relying on wireless
  • 00:09:33
    communication AMT is in a prime position
  • 00:09:36
    to benefit from this ongoing Trend the
  • 00:09:39
    expansion of 5G networks further
  • 00:09:41
    amplifies amt's growth prospects as more
  • 00:09:44
    towers and infrastructure are needed to
  • 00:09:46
    support this next generation of mobile
  • 00:09:48
    connectivity it currently offers a
  • 00:09:50
    dividend yield of
  • 00:09:52
    2.85% which may seem modest compared to
  • 00:09:55
    other REITs however where AMT truly
  • 00:09:57
    excels is in its dividend growth rate of
  • 00:10:01
    15.22% additionally AMT has an average
  • 00:10:04
    share price appreciation of
  • 00:10:06
    8.66% making it a solid choice for
  • 00:10:09
    investors looking for both income and
  • 00:10:11
    growth so let's look at the potential
  • 00:10:14
    returns if you were to invest $10,000 in
  • 00:10:17
    AMT today after one year your investment
  • 00:10:20
    could be worth
  • 00:10:22
    $1,151 fast forward 10 years and your
  • 00:10:25
    investment could grow to $32,500
  • 00:10:29
    after 20 years the value could rise to
  • 00:10:35
    $142,600 years your investment might
  • 00:10:38
    reach an incredible
  • 00:10:39
    [Music]
  • 00:10:43
    $1,745 what about those dividends after
  • 00:10:45
    30 years your dividends could total
  • 00:10:48
    around
  • 00:10:49
    $152,600 annually giving you a monthly
  • 00:10:53
    income of about
  • 00:10:56
    $2,720 this shows AMT is a reath the can
  • 00:10:59
    provide both stability and significant
  • 00:11:02
    long-term gains it's an investment you
  • 00:11:04
    can hold on to with confidence as the
  • 00:11:06
    demand for wireless communication
  • 00:11:08
    continues to expand globally now
  • 00:11:10
    remember in the end I'll show you a
  • 00:11:12
    wreath that has the potential to turn a
  • 00:11:14
    $110,000 investment into over $1.5
  • 00:11:17
    million and pay over
  • 00:11:19
    $114,000 per month in dividends next on
  • 00:11:23
    our list is extra storage space ticker
  • 00:11:26
    symbol
  • 00:11:27
    exr this re focuses on self- storage
  • 00:11:31
    properties a sector that's shown
  • 00:11:33
    remarkable resilience and growth over
  • 00:11:35
    the years as people accumulate more
  • 00:11:37
    belongings and businesses require
  • 00:11:39
    additional Storage Solutions the demand
  • 00:11:41
    for Self Storage continues to rise exr
  • 00:11:45
    has positioned itself as a leader in
  • 00:11:47
    this space owning and operating a
  • 00:11:49
    massive network of storage facilities
  • 00:11:51
    across the United States one of the key
  • 00:11:54
    attractions of exr is its strong
  • 00:11:56
    financial performance currently exr R
  • 00:11:59
    offers a dividend yield of
  • 00:12:01
    3.64% which is competitive within the re
  • 00:12:04
    space however what truly sets exr apart
  • 00:12:07
    is its impressive dividend growth rate
  • 00:12:09
    of
  • 00:12:11
    14.52% in addition exr boasts an average
  • 00:12:14
    share price appreciation of
  • 00:12:16
    12.97% making it an excellent choice for
  • 00:12:19
    investors seeking both income and
  • 00:12:22
    Capital Growth so let's dive into the
  • 00:12:24
    numbers if you were to invest $10,000 in
  • 00:12:27
    exr today after one year your investment
  • 00:12:30
    could be worth
  • 00:12:33
    $1,661 fast forward 10 years and your
  • 00:12:35
    investment could grow to
  • 00:12:38
    $7,555 after 20 years that amount could
  • 00:12:42
    balloon to
  • 00:12:43
    $239,300 and if you hold on for 30 years
  • 00:12:47
    your investment could potentially reach
  • 00:12:51
    1,281
  • 00:12:53
    1049 but that's not all after 30 years
  • 00:12:57
    your dividends could total around
  • 00:13:00
    $61,900
  • 00:13:01
    annually translating to a monthly income
  • 00:13:04
    of about
  • 00:13:14
    $5,151
  • 00:13:17
    m271
  • 00:13:19
    149 this shows the power of compound
  • 00:13:22
    growth and the benefits of reinvesting
  • 00:13:25
    dividends over a long period adding exr
  • 00:13:28
    to your p portfolio is a no-brainer
  • 00:13:31
    first the self- storage sector has
  • 00:13:33
    proven to be remarkably resilient even
  • 00:13:35
    during economic down turns people
  • 00:13:38
    continue to need storage space
  • 00:13:40
    regardless of economic conditions which
  • 00:13:42
    provides a steady Revenue stream for exr
  • 00:13:45
    second the combination of solid dividend
  • 00:13:48
    yield with robust dividend growth makes
  • 00:13:50
    exr an attractive choice for income
  • 00:13:53
    focused investors who also want to see
  • 00:13:55
    their Investments grow over time finally
  • 00:13:59
    number one and Topping the list is Cub
  • 00:14:02
    smart ticker symbol Cube another major
  • 00:14:07
    player in the Self Storage sector like
  • 00:14:09
    Extra Space Storage Cub smart focuses on
  • 00:14:12
    owning and managing self- storage
  • 00:14:14
    facilities across the United States with
  • 00:14:17
    the increasing need for storage
  • 00:14:19
    solutions driven by both residential and
  • 00:14:21
    Commercial demand Cub smart has carved
  • 00:14:24
    out a significant presence in the market
  • 00:14:26
    making it a solid choice for long-term
  • 00:14:29
    investors Cub smart currently offers a
  • 00:14:31
    dividend yield of
  • 00:14:33
    3.96% which is attractive compared to
  • 00:14:35
    many other reats however what makes Cube
  • 00:14:38
    particularly appealing is its robust
  • 00:14:41
    dividend growth rate of
  • 00:14:43
    14.98% this growth rate suggests that
  • 00:14:46
    investors can expect their dividend
  • 00:14:48
    income to increase substantially over
  • 00:14:51
    time additionally Cub smart has shown an
  • 00:14:54
    average share price appreciation of
  • 00:14:56
    10.64% which when combined with its
  • 00:14:59
    strong dividend growth offers a
  • 00:15:01
    compelling case for both income focused
  • 00:15:04
    and growth oriented investors let's
  • 00:15:07
    break down the potential returns if you
  • 00:15:09
    invest $10,000 in Cub smart today after
  • 00:15:12
    one year your investment could be worth
  • 00:15:16
    $1,460 after 10 years this could grow to
  • 00:15:19
    $
  • 00:15:19
    42,1 34 fast forward 20 years and your
  • 00:15:23
    investment might be worth
  • 00:15:26
    $22,995 and if you hold on for 30 years
  • 00:15:30
    that same investment could reach an
  • 00:15:32
    impressive
  • 00:15:35
    1,647 40 in terms of dividends after 30
  • 00:15:39
    years your annual dividend income could
  • 00:15:42
    total around
  • 00:15:43
    $175,300
  • 00:15:45
    187 giving you a monthly income of
  • 00:15:48
    approximately $1
  • 00:15:51
    14,618 the total value added to your
  • 00:15:54
    portfolio will be
  • 00:15:56
    $1,594 740
  • 00:15:59
    with
  • 00:16:04
    $774,500
  • 00:16:06
    724 from dividend
  • 00:16:09
    reinvestment want to get paid every week
  • 00:16:11
    click the video on the screen to find
  • 00:16:13
    out how to create a portfolio that can
  • 00:16:16
    pay $200 every week starting from the
  • 00:16:19
    very first week
Tags
  • REITs
  • investing
  • real estate
  • Agree Realty
  • Essential Properties
  • Rexford Industrial
  • American Tower
  • Extra Storage
  • CubeSmart