2 Apartment REITs With Yields Up to 4.3% to Buy in 2024
The U.S. real estate market is more unaffordable than ever before, pushing more people to rent rather than buy. This trend makes residential real estate investment trusts (REITs) very interesting for investors.
Residential REITs offer investors the benefits of owning rental properties without the hassles of purchasing a property or being a landlord. They also carry the benefit of being liquid, since you can sell a stock any time the market is open, compared with a property that could take months or years to sell.
Equity Residential
Equity Residential (NYSE:EQR) acquires, develops, and manages residential properties in major cities around the U.S., including Boston, New York, Washington, D.C., Seattle, and San Francisco. It currently owns 302 properties consisting of over 80,000 apartment units.
Equity Residential currently pays a quarterly dividend of $0.6625, equating to $2.65 per share annually, giving it a yield of about 4.3% today. It has also raised its annual dividend each of the last two years, and it could very well continue this streak in 2024 based on its recent financial performance.
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AvalonBay Communities
AvalonBay Communities (NYSE:AVB) specializes in the development, acquisition, and management of apartment communities in leading metropolitan areas such as Boston, New York City, Charlotte, San Francisco, Seattle, Denver, and Washington, D.C. It currently has ownership interests in 296 apartment communities consisting of over 89,000 apartment units.
AvalonBay currently pays a quarterly dividend of $1.65 per share, equating to $6.60 per share annually, giving it a yield of about 3.6% today. It has also raised its annual dividend 10 times since 2012, making it a quality dividend-growth stock.
Arrived Homes
Arrived Homes also offers a way for investors to gain exposure to residential real estate. It's an alternative investment platform, backed by Jeff Bezos and Dara Khosrowshahi, that allows individuals to easily invest in real estate by purchasing shares of rental properties. Investors on the platform earn passive income through rental revenue while waiting for the properties they invest in to appreciate in value over time.
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