3 REITs I Just Bought for Dividend Growth: ROTH IRA Investing Update for January 2023
As we enter 2023, investors are constantly on the lookout for opportunities that promise not only growth but also reliable dividends. Real Estate Investment Trusts (REITs) have long been a favored option for income-oriented investors due to their requirement to distribute at least 90% of their taxable income as dividends. This article will delve into three REITs that I recently added to my portfolio as part of my ROTH IRA strategy, focusing on their potential for dividend growth and long-term stability.
1. Realty Income Corporation (O)
Known as "The Monthly Dividend Company," Realty Income Corporation (NYSE: O) is a well-established REIT that primarily invests in commercial properties under long-term net lease agreements. It owns thousands of properties across various sectors, including convenience stores, drug stores, and dollar stores, making it a resilient option even during economic downturns.
Why Realty Income?
- Monthly Dividends: Realty Income is renowned for its monthly dividend payments, allowing investors to enjoy a steady income stream.
- Dividend Growth History: The company has a robust track record, consistently increasing its dividend for over 25 years, making it a Dividend Aristocrat.
- Strong Portfolio: With a diverse portfolio of commercial tenants, Realty Income is well-positioned to weather economic volatility, providing a reliable source of income.
Conclusion
Incorporating Realty Income into my ROTH IRA is a strategic move for consistent income and long-term growth potential.
2. Digital Realty Trust, Inc. (DLR)
In our increasingly digital world, data centers are becoming essential for various industries. Digital Realty Trust, Inc. (NYSE: DLR), focuses on acquiring, developing, and operating data centers globally, providing essential infrastructure for the technology sector.
Why Digital Realty?
- Growing Demand: The demand for data storage and cloud computing continues to rise, driven by digital transformation trends across multiple sectors.
- Dividend Stability: Digital Realty has a solid history of paying dividends, and while it may not be the highest yield, its consistent growth is noteworthy.
- Strategic Partnerships: DLR has established strategic partnerships with leading technology companies, enhancing its revenue stability and growth potential.
Conclusion
Adding Digital Realty to my portfolio aligns with the technological advances reshaping our world, ensuring that I benefit from dividend growth and capital appreciation.
3. Simon Property Group, Inc. (SPG)
Simon Property Group, Inc. (NYSE: SPG) is a leading retail REIT that specializes in shopping malls and premium outlets. Despite the challenges faced by the retail sector in recent years, Simon has shown a remarkable resilience and adaptability.
Why Simon Property Group?
- Robust Recovery: As consumers return to in-person shopping post-pandemic, Simon is poised to benefit from this resurgence, with many of its properties reporting increased foot traffic.
- Strong Dividend History: Simon is known for its significant dividends, with a reputation for providing reliable payouts to shareholders, backed by a large and diverse tenant base.
- Adaptation to Trends: The company is actively adapting its shopping centers by incorporating entertainment and dining experiences, which enhances the overall appeal of its shopping environments.
Conclusion
Investing in Simon Property Group offers a unique opportunity to capitalize on the retail recovery while enjoying strong dividend payouts, making it a valuable addition to my ROTH IRA.
Final Thoughts
In January 2023, these three REITs—Realty Income Corporation, Digital Realty Trust, and Simon Property Group—represent a strategic blend of stability, growth potential, and robust dividends within my ROTH IRA. The slogan "diversification is key" rings especially true in real estate investments, and these choices reflect a commitment to both immediate income and long-term financial health as I plan for retirement. As always, it’s crucial to perform thorough research and consider individual risk tolerances before making investment decisions. Happy investing!
LEARN MORE ABOUT: IRA Accounts
TRANSFER IRA TO GOLD: Gold IRA Account
TRANSFER IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
Solid adds friend. We added pstl. It’s a company that owns property that rents to do Usps.
Who do you use for your Roth IRA?
I love the spreadsheet idea. Anyone knows or can tell me how to get it created/started
Wow, I have a similar strategy I arrived at. I have SCHD, PSA and O. I like the REIT’s in the Roth for future tax purposes. I looked at AMT, but was worried that Star Link could potentially make the cell towers obsolete.
I got into Cube a year ago. Done nothing but drop. Been coming back lately though
I own VICI and AMT. I bought AMT back in May 2015 for $92. It has done well for me. I still own the 200s at on yoc at 6.73% Vici I bought back in July 2021. You're on the right path dca. Dont get too caught on the day to day price of the stock. It usually pays off in the long term. Meanwhile, you're getting paid to wait. I too own reits in my IRA. Thank you for the videos.
Can anyone share info on taxes / REITs ?
AMT seems wide spread across the world. But REITs are new for the rest of the world and most do not have laws for REITs. Ie, they pay taxes like everyone else. These countries do not have REITS. So how is AMT operating there?
First, you ought to explain the difference between a qualified and ordinary dividend payment, as I am finding many average Joe investors do not understand this (for most tax payers, qualified dividends will be taxed at just 15% vs the top tax rate of 22-24% like royalty and interest income). Second, you ought to explain that not all REIT's pay ordinary dividends. So far I have found that ACRE, EFC, RC, and RITM are four REIT's that pay qualified dividends, a fact no one seems to be able to explain. Finally, I have not been able to find an stock listing service or website that can tell me ahead of time if a company is paying qualified or ordinary dividends to their shareholders, another fact that in a of itself has stumped everyone I have talked to about this. It is apparently the greatest deep dark secret in the world. The way I am finding out what type of dividend a stock pays is by buying the stock and checking the dividend payment type with my brokerage when it pays. It's kind of like finding out if an appliance works by purchasing it, taking it home and plugging it in and turning it on, only then do you know if it actually works.
Please compare NSA in the self storage video in the future!! NSA is 40% of my portfolio
Appreciate all the Details in these videos, keep up the good work!
AMT, CUBE, VICI. You’re welcome.
Great video and very good choice of REITs. 🙂
Thanks for the video, can you share the safety scores for AMT and CUBE please, VICI was 50 9:30
I own VICI & CUBE
I’m also looking at NXRT & EQR if you want to check them out
In storage I own NSA. Thanks.
Any thoughts on Prologis Inc($PLD)?
One thing I like to point out is the that real estate market is worth more than the whole stock market, so it's definitely worth making it part of an investment portfolio in my opinion!
Thanks for sharing Nick !!
Why not own any O?
Good choices, all are on my watchlist. Thank you.
You think you can add NSA to your Storage comparison? Would be interested in hearing your thoughts.
I like all of these REITs. I like Vici and will start a position next month.
Hey Nick, are you planning (or have you already) instagram account ? BTW – you've mentioned you're fulltime working single father, can you disclose whether you make living in Financial industry (just wondering)
I believe the Tech comeback will be the story this year – two great buys are AMZN and MSFT- and Energy is a great sector as well right now – great P/Es and yields – I bought CVX two years ago and just purchased DVN -Good luck with your investments.
Looks like active investing to me. I guess really believe in DCA. Me, I add more when prices are lower. I try not to lump sum, but don't studies show that to be best. AMT sounds interesting, but I am trying to simplify. SCHD, FTEC, VOO in my IRA. In my Roth, IRM has been the best performer in the last year or so.
Nice video thx! Maybe check out bam, not necessarily a reit but soon they’ll reveal their dividend which may garner more interest after the spinoff . It has run up tho and may be fair valued now
I have lsi and nsa for storage reit
Great video
when you were purchasing CUBE did you compare it to LSI? just want to know why u went with CUBE over LSI
I started buying VICI a few months ago. Great vid. I would love to hear more about the REITs you like. Keep up the great work and good luck!
I actually added VICI to my portfolio recently as well! Nice video!
First view first comment BOOM!