Leasing the American Dream: These Companies Are Cashing In
As the dream of homeownership becomes more elusive for many in the current real estate landscape, savvy investors are turning their attention to alternative avenues. Let's take a look at two stocks and one crowdfunding platform that provide gateways to real estate exposure and wealth accumulation.
Invitation Homes
Invitation Homes (NYSE:INVH) owns and manages a portfolio of approximately 80,000 single-family homes across the Western U.S., Sunbelt, and Florida. In all 16 of its core markets, it's more affordable to lease a home than it is to buy, helping it achieve a 97.1% same-store average occupancy in the fourth quarter of 2023.
Invitation Homes currently pays a quarterly dividend of $0.28 per share, which equates to $1.12 per share annually and gives it a yield of about 3.4% today. The company has also raised its annual dividend payment every year since its initial public offering in 2017, making it both a high-yield and dividend-growth stock.
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American Homes 4 Rent
American Homes 4 Rent (NYSE:AMH) owns and manages a portfolio of over 58,000 single-family homes. Its portfolio spans 21 states in the Southeast, Midwest, Southwest, and Mountain Regions, encompassing markets like Orlando, Tampa, Dallas, Houston, Nashville, Denver, Phoenix, Salt Lake City, and Seattle.
American Homes 4 Rent currently pays a quarterly dividend of $0.26 per share, equating to an annualized rate of $1.04 per share and giving its stock a yield of about _% today. The company has also raised its annual dividend payment for three consecutive years, and its 18% hike last week has it on track for 2024 to mark the fourth consecutive year with an increase.
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 the rental revenue while waiting for the properties they invest in to appreciate in value over time.
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