Top REITs to Buy for Passive, Steady Income
If you're interested in investing in REITs, here are some of the top options to consider.
1. American Tower (AMT)
American Tower is a REIT that owns and operates more than 181,000 communications sites around the world, including cell towers, rooftop sites, and other communications infrastructure. The company generates revenue by leasing space on these sites to wireless carriers, broadcasters, and other customers.
As demand for mobile data continues to grow, American Tower is well-positioned to benefit. The company has a long track record of growth and has consistently raised its dividend over the past decade. AMT also has a diversified customer base that includes major wireless carriers like AT&T, Verizon, and T-Mobile.
2. Prologis (PLD)
Prologis is a REIT that specializes in logistics and industrial real estate. The company owns and operates more than 976 million square feet of properties across the globe, including warehouses and distribution centers.
With the rise of e-commerce and online shopping, demand for warehouse and distribution space is increasing. Prologis is a leader in this space, and the company's properties are in high demand from top customers like Amazon. PLD also has a strong balance sheet and a history of strong dividend growth.
3. Equinix (EQIX)
Equinix is a REIT that owns and operates data centers around the world. The company provides space and power to companies that need to store and process large amounts of data, such as cloud computing providers, digital media companies, and financial services firms.
As more companies move their data and applications to the cloud, demand for data center space is growing. Equinix is a leader in this space, with a global footprint of more than 200 data centers. EQIX also has a history of strong growth and dividend increases.
4. Boston Properties (BXP)
Boston Properties is a REIT that owns and operates office properties in major U.S. cities like New York, Boston, and San Francisco. The company's properties are typically Class A office buildings in prime locations, and BXP has a strong reputation for quality and service.
While the COVID-19 pandemic has led to uncertainty about the future of the office market, Boston Properties is well-positioned to weather the storm. BXP has a strong balance sheet, with low leverage and ample liquidity. The company's properties are also in high-demand locations that will likely remain attractive to tenants over the long term.
5. Digital Realty (DLR)
Digital Realty is a REIT that specializes in data center properties, similar to Equinix. The company owns and operates more than 280 properties across the globe, providing space and power to customers in a variety of industries.
As with Equinix, demand for data center space is growing as companies move more of their operations to the cloud. Digital Realty is a leader in this space, with a long track record of growth and a diversified customer base. DLR also has a track record of strong dividend growth.
Investing in REITs can be a great way to earn passive income from real estate without the headaches of actually owning and managing property. However, it's important to do your research and choose investments carefully. Consider factors like the strength of the company's balance sheet, the quality of its assets, and its history of dividend growth before investing your money.