The stock market has had several sell-offs in the past year. While it may take a steady step toward recovery, eventually there will be another market dip.
Selling out is a great time to increase your chances of making money, especially for long-term investments. If you want to take advantage of a market sell-off, here are three stocks under $100 that are great to buy and hold onto forever.
Unparalleled track record with unparalleled dimensions
real estate income (O -0.09%) is one of the most loved dividend stocks today. With the prestigious title of a Dividend Aristocrat and as one of the few monthly paying dividend-paying real estate investment trusts (REITs), it has a lot to offer in terms of long-term investment.
The company, which owns and leases a diverse mix of commercial properties, is the industry’s largest net leasing REIT, with interests and ownership in more than 11,400 properties worldwide and a market capitalization of $4.6 billion. With such a huge footprint with such an incredibly diverse portfolio, it’s the perfect buy-and-hold stock because it’s able to deliver consistent growth while paying extremely reliable and attractive dividends.
Right now, its dividend yield is just under 4% and it has a safe payout ratio of 72% of its funds from operation (FFO). In addition, it has an excellent balance sheet, with debt ratios in line with the REIT average, about 5.2 times earnings before interest, taxes, depreciation and amortization (EBITDA), and $3 billion in liquidity, giving it a lot of money to spend. finance further expansion.
Dominant living in the city
Equity Residential (EKR 0.26%) is one of the premier residential REITs focused on acquiring and developing high-quality apartments in 12 major metropolitan cities. Life in the city took a big hit during the early stages of the COVID-19 pandemic, as many residents wanted more spacious and affordable housing. However, many cities are now making a big comeback, which has boosted the profits of Equity Residential’s 311 homes over the past year. The mixed lease rate, which includes new and renewed leases, grew by 14% to date, while the occupancy rate stands at a very healthy 96.9%.
There is growing concern about the impact of a recession on rental housing, which has caused the share price to fall recently. But long-term investors know they need to look beyond short-term headwinds and instead look to long-term industry demand. Rental housing plays an essential role in our society. And while the real estate markets and the demand for rental housing are changing, living in the city will remain attractive for many.
The company is also proactively expanding its portfolio into the Sun Belt, one of the fastest-growing regions of the United States today, which should help it offset any losses incurred by changing demographics of larger coastal cities. The REIT recently increased its dividend and is currently paying just over 3%.
Investing in the silver tsunami
source (GOOD -0.86%) is a healthcare REIT that owns and rents housing facilities for seniors. The past few years have been very tough for the company. Pandemic-related effects, especially on the demographics it serves, caused stocks to tumble. Share prices are still about 8% below pre-pandemic levels.
However, this year’s gains show promising signs that the worst may be over. The last quarter was strong with net operating income (NOI) growing 15.4% and revenue up 11% from last year. In July, net hiring – which was a major challenge for the healthcare sector – was almost equal to net hires for the entire first six months of the year.
Welltower certainly has a long way to go before it fully recovers from the effects of COVID-19, but its short-term comeback doesn’t make it a great long-term buy. The real value in Welltower is what’s to come in the decades to come.
By 2060, the number of people age 65 and older is expected to be around 95 million, from about 16% of the U.S. population today to 23%. And there are not nearly enough homes to meet the growing need. Welltower’s diverse portfolio of senior-oriented homes enables it to serve the aging population in the decades to come.
Liz Brumer-Smith has no position in any of the listed stocks. The Motley Fool has no position in any of the listed stocks. The Motley Fool has a disclosure policy.