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15 Real Estate Stocks That Are Great Inflation Fighters

By Marc Rapport - Jul 2, 2022 at 11:03AM
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15 Real Estate Stocks That Are Great Inflation Fighters

This diverse collection of asset-owning equities provides passive income and active inflation protection

Inflation is producing sticker shock, eroding the value of each dollar you have while easily outpacing the interest paid by even the most generous of insured savings accounts and other ultra-conservative investments. So, what to do?

Consider real estate stocks, many of which are now so beaten down that they offer particularly outstanding bargains for outstanding companies that should prove to be great inflation fighters.

Here are 15 to consider. Each has its own appeal, including the ability of the real estate investment trusts (REITs) that dominate this list to raise their rents when they can to accommodate inflation in their portfolios.

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1. Blackstone Mortgage Trust

Blackstone Mortgage Trust (NYSE:BXMT) is a mortgage REIT (mREIT) with a two-pronged defense against inflation. This commercial real estate lending specialist has a portfolio that's nearly all floating-rate loans, yielding about 9% at a current share price of about $28 a piece.

ALSO READ: Investing in Mortgage REITs

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Retail commercial property with brick exterior.

2. Realty Income

Realty Income (NYSE:O) is an equity REIT, meaning it makes its money and pays its dividends primarily from the huge retail real estate portfolio it directly owns and leases.

This monthly dividend machine has returned an inflation-stomping 15.3% compound annual growth since going public in 1994 and currently sells for about $67 a share, with a yield of about 4.5%.

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People in a hospital lobby.

3. Medical Properties Trust

Medical Properties Trust (NYSE:MPW) is a healthcare REIT, this one with a portfolio of more than 430 hospitals on four continents. That's an inflation-resistant industry, given the necessity and pricing power of its business, and MPT stock is now yielding about 8% after raising its dividend for eight straight years.

ALSO READ: Investing in Healthcare REITs

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4. D.R. Horton

D.R. Horton (NYSE:DHI) is the nation's largest homebuilder. Housing demand hasn't seriously dipped yet, but this stock price has -- down about 39% so far this year as interest rates and inflation rise.

Analysts still consider this company a "moderate buy" and give it a consensus price target of about $95. With a share price now at about $67 (and a moderate yield of about 1.5%), this could be quite a buy ahead of a market recovery.

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5. Omega Healthcare Investors

Omega Healthcare Investors (NYSE:OHI) is another healthcare REIT. Omega specializes in skilled nursing and assisted living facilities in the United States and the United Kingdom and is yielding an inflation-beating 9.7% or so as its business continues recovering from the pandemic. The stock price also is down substantially, making this perhaps an even more-promising buy.

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6. Crown Castle International

Crown Castle International (NYSE:CCI) doesn't have the highest yield around, although its current payout of about 3.6% is still more than twice that of the S&P 500.

What makes this company appealing is its fast-growing collection of small cell nodes that complements its portfolio of more than 40,000 traditional mobile towers and 80,000 miles of fiber cable across the United States.

That speaks to the kind of growth potential that should make this stock bounce back from its current doldrums and provide inflation-beating total returns for years to come.

ALSO READ: 3 Reasons to Buy Crown Castle Hand Over Fist

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7. AGNC Investment

AGNC Investment (NASDAQ:AGNC) delivers an eye-popping and inflation-busting yield of about 13.5% at a rate of $0.12 a month per share. That's right. This mREIT, which makes its living trading in government-backed mortgage securities, pays monthly -- and at a pretty handsome rate.

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8. Prologis

Prologis (NYSE:PLD) is the largest industrial property owner in this booming business, with a global portfolio of logistics properties encompassing right around a billion square feet. And it's regularly adding to that through expansion and acquisition.

While its yield is only about 2.8%, Prologis has a strong record of market-beating total returns that is likely to continue as long as e-commerce and business-to-business space remain in such strong demand.

ALSO READ: Prologis Wins Over Duke Realty in $26 Billion REIT Mega Deal

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A large modern office building.

9. Global Net Lease

Global Net Lease (NYSE:GNL) has a diversified collection of mission-critical commercial properties -- a roughly even split between office and industrial -- across the United States and Europe. This REIT currently yields nearly 12% at a share price of about $14, which analysts see rising back to about $19.

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People in front of house are holding a key and smiling.

10. Opendoor Technologies

Opendoor Technologies (NASDAQ:OPEN) has only been around for a decade, but its platform for buying and selling residential real estate online has become widely used across the country as that kind of consumer shopping has gained traction.

No dividend here, but the company's share price is down about 70% to about $5.25 a share and has an analysts' price target of about $17.25. If they're right, tripling your money should take care of inflation should you choose to cash out at that level or anything near it.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

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Dice spelling ETF.

11. Vanguard Real Estate ETF

Vanguard Real Estate ETF (NYSEMKT:VNQ) is an exchange-traded fund with a weighted portfolio comprising about 160 different REITs. It's like an index fund for REITs in that regard.

Vanguard stock is currently trading for about $91 a share and yielding about 3.4% and is a good way to get your feet wet in real estate investing that should grow in value as the market recovers.

ALSO READ: How to Invest in ETFs for Beginners

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12. Agree Realty Trust

Agree Realty Trust (NYSE:ADC) is a retail REIT owner of about 1,500 properties across the country and a longtime market-beater. Agree stock has nearly doubled the S&P 500 in total return over the past 10 years and is actually up slightly year to date by that measure -- a good head start for fending off the effects of inflation going forward.

ALSO READ: Investing in Retail REITs

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Stacks of change sit near a small model house as a person writes in a notebook in the background.

13. Annaly Capital Management

Annaly Capital Management (NYSE:NLY) is one of the largest mREITs, at a market cap of nearly $9 billion, and is a specialist in both mortgage finance and corporate middle-market lending. Annaly stock is yielding nearly 15% right now. A battered stock price, of course, pushes yield up, but Annaly still has a long record of inflation-beating yield even when times looked much better.

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Two people dressed as aristocrats might have dressed 100 or more years ago and having tea and smiling.

14. Federal Realty Investment Trust

Federal Realty Investment Trust (NYSE:FLR) is REIT royalty. This owner of 104 primarily upscale shopping and mixed-use centers in major coastal markets has raised its Dividend for 54 straight years. That recond more than qualifies it for the status of Dividend King. Currently, at a share price of about $97, Federal Realty will bestow upon its people a yield of about 4.5%. And at a price about 30% below its 52-week peak, this looks like a bargain.

ALSO READ: Dividend Kings of 2022

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Person packing a box in a self-storage unit.

15. Extra Space Storage

Extra Space Storage (NYSE:EXP) is a major owner and operator of self-storage facilities, and it's been a market outperformer, to say the least. This company boasts a total return of nearly 700% in the past 10 years, compared to about 240% for the S&P 500.

Extra Space Storage's stock is yielding about 3.6%, and an analysts' price target of about $204 could portend some nice gain from the current level of about $167 a share.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

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Modern office buildings situated on both sides of a lovely waterway winding itself through Hong Kong.

A down market is a great time to pick stocks with big upside -- these inflation fighters could fit the bill

Each of these 15 stocks has a solid dividend payment and good prospects for share price appreciation because of their strong business models and records.

Plus, their strong total return -- that combination of dividend payouts and share price appreciation-- makes them particularly effective choices for contending with inflation.

Marc Rapport has positions in Agree Realty, Blackstone Mortgage Trust, Crown Castle International, Global Net Lease, Medical Properties Trust, and Vanguard Real Estate ETF. The Motley Fool has positions in and recommends Crown Castle International, Opendoor Technologies Inc., Prologis, and Vanguard Real Estate ETF. The Motley Fool has a disclosure policy.

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