Different market seasons command different types of investors to manage their portfolios. If investors are not aligned with the market season, results could seriously affect the wealth creation process and slow down any financial goals that might have been set out at the beginning of any investing journey. Rather than spending time trying to decode the S&P 500's market cycle, investors can shortcut the process by exploring today’s list.

When monetary policy and market certainty were accommodative, investors did relatively well by trading and investing in the most exciting names in the market, seeing the sort of results each month that would excite most investors over the span of an entire year. However, today’s market is different. Investors must be okay with cutting back on expectations (and risk), therefore driving those savvy enough into stable and boring names.

Though stable and boring doesn’t have to mean low returns, as today’s list of real estate investment trusts (REITs) combines the stability of the real estate sector along with decent upside and dividend income to make it worthwhile during today’s volatility. Keeping names like Realty Income Co. (NYSE: O), American Tower Co. (NYSE: AMT), and even Digital Realty Trust Inc. (NYSE: DLR) can make for some rock-solid portfolios in the coming months.

For Upside and Liquidity, Choose Realty Income

There must be a reason why up to $1.3 billion worth of institutional capital decided to flow into shares of Realty Income as of this quarter, and stability could be placed at the top of the list. Being relatively immune to the effects of recent trade tariffs rolled out by President Trump, this REIT offers a smoother path forward for investors.

More than that, this name is one of the few in the market that offer a monthly (rather than quarterly) dividend payout, making for an attractive source of income and liquidity for its shareholders. More on this dividend, which offers a payout of $3.22 per share, today’s stock price would translate that payment into an annualized dividend yield of 5.8%.

That yield beats both the 10-year treasury yield and the net inflation rate in the United States economy, making it an attractive proposition in any business cycle. Now, when it comes to the upside, investors can enjoy the best of both worlds as well.

Stifel Nicolaus analyst Simon Yarmak had something to say in that area. He reiterated his Buy rating for Realty Income stock as of early May 2025, this time placing a valuation target of up to $68 per share, calling for as much as 22.5% upside from where the stock trades today.

American Tower: A Long-Term Growth Income Play

For those looking for a bit more excitement in their dividend portfolio strategies, American Tower stock offers just that. This REIT, which is exposed to the communications and technology sector, provides infrastructure and space services for data centers and artificial intelligence hubs.

In this regard, knowing that demand for data centers will only increase in the coming months and quarters, investors can safely assume that American Tower's rental income and earnings per share (EPS) will likely follow. Because of this fundamental footing, the company’s management can afford to keep paying an attractive dividend to shareholders.

Through a $6.8 payout per share, today’s stock price would offer investors an annualized dividend yield of up to 3.21%, not as aggressive as Realty Income’s but still decent enough to be exposed to this long-term growth plan. And what American Tower can’t offer in dividends, it sure does make up for in its implied upside potential.

A new Buy rating was granted by Bank of America as of mid-May 2025, this time seeing the stock’s valuation at $255 per share. Compared to today’s prices, this target would call for as much as 20.3% upside to reward potential investors.

The Data Center Growth Calls for More Capital Through Digital Realty

Digital Realty is another REIT highly exposed to providing data centers and artificial intelligence hubs with the infrastructure and space they need to keep developing. It has made it a worthy mention in this list for income and upside to aid investors through tariff volatility.

Subscribing to this growth rate potential and stability moving forward, up to $2.4 billion in institutional capital has made its way into Digital Realty stock to show new signs of confidence in this REIT’s upside future. Particularly in terms of upside, Bank of America decided to also give its bullish view for this name.

With a new coverage, Bank of America sees Digital Realty as a Buy valued at $210 per share, rhyming with its view for American Tower this time, calling for a net implied rally of 24.7% when it comes to Digital Realty Trust. An added bonus also comes through a net payout of $4.88 per share to give investors a shot at making 2.9% per year on their investment.

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