Want to get richer? Invest in these 3 stocks and wait 10 years

BBuying the right stocks at the right time can exponentially increase your long-term returns. Thanks to dividend increases and potential share price growth, real estate investment trusts – or REITs, for short – are among the best ways to get rich over time.

Cousin Properties (NYSE: CUZ), Invitation houses (NYSE: INVH)and Digital Real Estate Trust (NYSE: DLR) are three stocks that appear to offer significant long-term growth opportunities supported by high-demand core industries. They’re all trading at a steep discount right now, making them the perfect buys for those hoping for big returns.

Let’s take a closer look at each of them and see why you might want to add these stocks to your portfolio today.

Everything is sunnier in the South

Office space has had a very rough run since the start of the pandemic. Compulsory work from home orders has forced millions of businesses to rethink the way they operate. Now, two years later, a growing number of companies are embracing part-time and full-time remote positions, reducing their need for office space.

This has certainly put a strain on the office industry, leading to high vacancy rates for decades. But Cousins ​​Properties has one major advantage that could make it worth a lot more over the next 10 years: its portfolio locations.

Cousins ​​Properties is the only office REIT to specialize exclusively in owning and leasing Class A office space in the Sun Belt region of the United States. The cities where Cousins ​​Properties operates – such as Austin, Texas, Raleigh, North Carolina and Atlanta, Georgia – are considered the best and fastest growing markets for employment.

Desktop demand may be wavering now, but personally I don’t think it will last forever. Businesses come and go, and some businesses and industries will need offices. Cousins ​​Properties is literally the perfect place to enjoy coming back from the office.

Additionally, Cousins’ latest Q2 2022 earnings report showed positive gains in funds from operations (FFO), net income and rental activity. Its portfolio is 90.2% let and 87.5% occupied, well above the current national average.

Ongoing concerns about the office’s fragile performance at the moment has driven Cousins’ share price down 12% since 2020, making it the perfect time to buy the stock at a discount while earning a yield. in dividends of more than 4%.

Redefining the rental business

Invitation Homes is the largest single-family rental REIT, with ownership and interest in over 75,000 single-family homes, primarily across the Sun Belt of the United States. The company has been on an absolute kill as demand for single-family rental homes has skyrocketed over the past few years. Its rents have steadily increased in double digits over the past two years, its mixed rental rate – which includes new leases and lease renewals – increased by 11.8% in the second quarter of 2022.

The single-family home is something that will never go out of style. People will always need a place to live, and some families will prefer the space and privacy of renting a house over an apartment. The company’s long-term growth is a major component in helping investors get rich through stock. Luckily, he has a plan for that. The REIT has partnered with a real estate developer who will deliver 7,500 new homes over the next five years. It also has the expertise and liquidity to source housing should the housing market turn around.

Invitation Homes’ low payout ratio of 52% and seven dividend increases since 2017 make it an ideal candidate for more increases as it slows acquisitions and growth going forward. The stock price is down 15% from its 2022 peak, but over the past three years the company’s stock price has risen nearly 40% and its dividend yield has increased by more than 17%. I believe there is still a lot of room to grow.

Technology is the future

Data centers have significant revenue potential over the next 10 years. The digital innovation that has taken place over the past decade is incredible, and the next decade will likely bring even more. These complex properties directly serve virtually every industry by helping to store and aggregate data digitally.

Digital Realty Trust is one of two data center REITs investors can choose from and is one of the largest REITs by market capitalization. The REIT owns and operates just under 300 facilities serving 50 major markets around the world. Its most recent earnings show lackluster growth due to several short-term headwinds such as supply chain issues and increased data center supply around the world, but its long-term potential remains. huge.

It has just completed the acquisition of Teraco, a South African data center operator, and is actively expanding and improving its global presence. Not to mention, recent data center acquisitions make Digital Realty Trust a strong takeover candidate in the future.

Like its companions here, Digital Realty’s stock has recently taken a hit. But that makes it an interesting time to buy shares of all three companies and hold them for the next 10 years. While there’s never any guarantee, given their respective businesses and growth opportunities for the next decade, chances are you’ll be much richer as a result.

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Liz Brumer-Smith holds positions at Cousins ​​Properties, Digital Realty Trust and Invitation Homes Inc. The Motley Fool holds positions and recommends Digital Realty Trust and Invitation Homes Inc. The Motley Fool has a Disclosure Policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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