American Homes 4 Rent posted very solid results last month, and the stock makes sense for investors looking to own single-family rental homes.
Shareholders receive a 2.20% dividend. The Goldman Sachs target price on American Homes 4 Rent stock is $39, while the consensus target is $36.29. The shares closed Wednesday’s trading at $32.34.
Apartment Income REIT
The name says it all here, and this big-dividend stock is a great idea for those seeking higher income with growth potential. Apartment Income REIT Corp. (NYSE: AIRC) is focused on the ownership and management of quality apartment communities located in the largest markets in the United States.
It is one of the country’s largest owners and operators of apartments, with 74 communities in 11 states and the District of Columbia. As of September 30, 2022, it held unencumbered apartment communities with an estimated fair market value of approximately $8.3 billion, almost triple the amount from December 31, 2020.
Investors receive a 4.91% dividend. Goldman Sachs has a $43 target price, and the consensus target is $41. Wednesday’s close was at $36.63.
Essex Property Trust
This stock has been hammered, but it is an outstanding way for investors looking to add an inflation-busting real estate position to growth and income portfolios. Essex Property Trust Inc. (NYSE: ESS) is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops and manages apartment communities in selected West Coast markets.
The company currently has ownership interests in 246 apartment communities comprising approximately 60,000 homes, with an additional six properties in various stages of active development.
Note that the company is a Dividend Aristocrat, making it one of 66 companies in the S&P 500 that have increased dividends (not just remained the same) for at least 25 years straight.
Essex Property Trust stock comes with a 4.03% dividend. The $254 Goldman Sachs price objective compares with the $246.19 consensus target and Wednesday’s closing price of $220.94.
Mid-America Apartment Communities
This one may provide one of the best entry points of all the top picks at Goldman Sachs. Mid-America Apartment Communities Inc. (NYSE: MAA) is a REIT focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities in the Southeast, Southwest, and Mid-Atlantic regions of the United States.
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Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
