Several REITs could be considered safe stocks, but there are two that may stand out above the rest. In this video clip from "Ask Us Anything" on Motley Fool Live, recorded on March 25, Fool.com contributor Rick Munarriz discusses why American Tower (AMT -0.29%) and Digital Realty (DLR 0.29%) are so appealing now and for the long term.
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Rick Munarriz: If you asked me two years ago, and my portfolio is very growth-oriented, it's still is to a large part, but Disney (DIS -0.29%) or an Apple (AAPL 0.74%) or a Google, Alphabet (GOOG 0.70%) (GOOGL 0.66%) would be the safe stock. Thankfully, in late 2020, early 2021, I took some of the gains I had in some of my growth stocks in 2020 and wound up buying basically about a dozen REITs, which I know falls into your category, Matt.
But again, if I look at my REITs and again, talking about that kryptonite, I look at something like a Physicians Realty Trust (DOC 0.41%) and I think, well, hey, what if medical regulation eats into what doctors 'offices can do or Mid-America Apartments (MAA 0.21%), what happens if these rental rates keep going up, going down? I think the one constant I think that I feel among the many REITs, and REITs are generally, obviously fairly safe, but something like a STAG Industrial (STAG 0.03%) or Realty Income (O -0.72%). Again, if the economy craters, what happens to them? I think connectivity is basically the constant that we're going to stay connected no matter what.
Somewhere between American Tower and Digital Realty, I think are the two, and I know you wanted just one, and I guess I'll pick one, but to me, American Tower, they are a leader in basically cell towers. You need these towers to amplify the signals of your phones, especially with 5G and everything, they're everywhere. Digital Realty, basically the second largest in the country, if not the world, of basically storing cloud services and basically the servers that companies need to keep going.
I think these are two if you're talking about five years, just shut it down and go, that would be it. I just pulled up a quote for American Tower ahead of this, the stock is down over the past year. You do have a case where it's safe in the sense that it's not been overvalued, it hasn't gotten run-up like a lot of the flow to quality, but I think I'll go with American Tower, even though Digital Realty definitely is very appealing to me right now as my two safest stocks in my portfolio of 65, 66 stocks right now.