REITs can be relatively safe investments. Most REITs provide a solid dividend payment and the chance for capital appreciation. Though there is no concrete guarantee that REIT dividends will be paid, chances are investors can profit while holding REIT stocks.
If you want to make money passively, put your money to work by investing in REITs. REITs have stable revenue that is unlikely to waver unless there is a significant economic shock or other major political/social event.
There are plenty of REITs to pick from. Here is a quick look at a couple of top REITs to consider: Lamar Advertising Company (LAMR) and One Liberty Properties (OLP).
Lamar Advertising Company (LAMR)
Based in Baton Rouge, Louisiana, LAMR is one of the largest owners and operators of advertising structures. Look closely at the next billboard you walk, jog, or bike by, and you might see LAMR's name on the bottom or side. LAMR's advertising structures are displayed outside to steer business toward automotive, restaurant, real estate, gaming, retail, and healthcare companies.
Aside from billboards, LAMR's outdoor advertising displays also include transit advertisements and logo signs. LAMR has an overall grade of B, which translates into a Buy rating in our POWR Ratings system. LAMR has B grades in the Quality, Sentiment, and Growth components of the POWR Ratings. You can find out how LAMR fares in the Momentum, Value, and Stability components by clicking here.
Out of 52 stocks in the REITs - Diversified industry, LAMR is ranked first overall. You can find other top stocks in this industry by clicking here. LAMR has a 2.78% dividend. The stock is currently trading about $4 below its 52-week high of $113.41. Its 52-week low is $59.78.
A large part of the appeal of investing in LAMR as the economy reopens is the fact that the company generates more revenue as economic activity and automotive driving increase. The return to life, as usual, will increase automotive traffic, exposing that many more potential customers to LAMR's outdoor advertising displays. This uptick in automotive traffic sets the stage for LAMR's clients to spend that much more money on the company's services in the quarters ahead.
One Liberty Properties (OLP)
OLP is a REIT that mainly invests in improved commercial real estate properties under a long-term net lease. OLP's property portfolio also includes office, industrial, fitness, health, and retail properties. OLP pays an impressive 5.92% dividend.
The stock has a forward P/E ratio of 15.35, so it appears undervalued at around $30.52 per share. OLP's 52-week high is $31.14, while its 52-week low is $14.93 per share. The company has an overall grade of B and a Buy rating in our POWR Ratings system. The stock has a Sentiment Grade of A and B grades in the Stability and Quality components.
You can find out how OLP fares in the Momentum, Value, and Growth components by clicking here. OLP is ranked in the top five of the 52 stocks in the REITs - Diversified industry, slotting in at third overall. The average analyst price target for OLP has increased by $12 in the prior year and three months.
LAMR shares were unchanged in after-hours trading Friday. Year-to-date, LAMR has gained 33.34%, versus a 20.05% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.
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