Stocks were flat this morning after another downbeat session. Tech shares plunged yesterday following a warning of slowing growth from Snap Inc. and a negative adjustment to its Q2 outlook. The social media company’s message came as a reality check for investors eyeing beaten-down growth names that technology and communication services are still highly oversold.
Many of Wall Street’s pros predict that the focus could shift further from pricey growth stocks toward tickers that offer value and a reliable payout. But you don’t have to sacrifice growth for value and stability.
Today we’re highlighting a real estate investment that should appeal to readers seeking value and growth along with a consistent payout. If you’re looking to unlock this powerful combination, look no further.
A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate. REITs allow investors to buy shares in commercial real estate portfolios – something that was previously only available to wealthy individuals and through large financial intermediaries. REITs generate a steady income stream for investors but offer little in the way of capital appreciation.
To qualify for REIT status, a company must primarily own income-generating real estate for the long term and pay a minimum of 90% of taxable income in the form of shareholder dividends each year.
Virginia-based Apple Hospitality REIT, Inc. (APLE) owns and manages a portfolio of upscale hotels in the U.S., including 219 hotels located in 86 markets across 36 states.
Along with a strong recovery in domestic travel last year, APLE’s net income rebounded with gusto from a loss of $173.2 million in 2020 to $18.8 million in 2021. The company reported full-year 2021 revenue of about $934 million, compared to revenue of $602 million in 2020.
Barclays analyst Anthony Powell recently raised his price target for Apple Hospitality from $19 to $21 and maintained an Overweight rating on the shares. The analyst cited the company’s strong operating results, leading sub-sector dividend, and latest acquisition activity for the target upgrade. APLE garners a Buy rating and a median price target of $20, representing an increase of 30% from Tuesday’s closing price. The REIT rewards investors with an attractive monthly payout of $0.05 per share, which amounts to a 3.56% yield.
Should you invest in Apple Hospitality REIT right now?
Before you consider buying Apple Hospitality REIT, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not Apple Hospitality REIT.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
Click here to watch his presentation, and decide for yourself...
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
Click here to find out the name and ticker of Keith's #1 pick...
