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7 Highest Yielding “Solid Buy” REITs Offer Huge Dividends and Inflation Protection – 24/7 Wall St.

There is a saying among real estate investors that you can no longer manufacture or create land. Although you can always build higher, you still need the land. Real estate is one of the best assets that most investors are underweight. Homeowners are technically real estate investors, but home ownership produces no income unless you have rental homes, which can be very capital intensive, not to mention time consuming.

Inflation conditions this year are the worst since the early 1980s, and there is no reason to expect things to improve anytime soon. In fact, according to the National Federation of Independent Businesses, about 40% of American small businesses plan to raise prices by 10% or more this year. Add to that soaring food and gasoline prices, and the picture for the rest of 2022 looks increasingly bleak.

Real estate investment trusts (REITs) can serve as an inflation hedge by capitalizing on cheap mortgage interest rates, passing on rising costs to commercial or residential tenants with higher rents, and benefiting from rising long-term values. Most of the big companies in the sector have gotten cheap capital, and even though rates are up this year, the Federal Reserve’s target of 3.0% to 3.5% for fed funds is still low. on a historical basis.

We sifted through our Wall St. REIT research universe 24/7 and found seven top stocks that are all listed for buy on Wall Street and pay very safe and large dividends. It is important to remember that no single analyst report should be used as the sole basis for any buy or sell decision.

Gladstone Commercial

This stock has been hit hard by rising interest rates and offers the best entry point since last November. Gladstone Commercial Corp. (NASDAQ: GOOD) is focused on acquiring, owning and operating net leased industrial and office properties across the United States.

As of June 30, 2021, Gladstone owns a diversified portfolio of 121 office and industrial properties located in 27 states and leased to 106 tenants. The company has grown the portfolio consistently and disciplined at a rate of 18% per annum since its IPO in 2003. It combines long-term leased properties with long-term debt to lock in the spread to create a sustainable and stable cash flow. cash flow to fund monthly distributions to shareholders. The current occupancy rate stands at 96.5%, and this occupancy rate has never dropped below 95.0% since 2003.

More importantly for investors, Gladstone has a track record of success, as evidenced by a history of high distribution returns, consistent occupancy and over 10 years of continuous monthly cash payouts.

Investors receive a rich payout of 7.01%. Aegis has a high price target of $26 on Wall Street, which may rise soon. The consensus target for shares of Gladstone Commercial is $25. Tuesday’s last trade was at $21.46 per share.