Lazy Landlords: Start a Real Estate Empire With These REITs
If there’s one thing investors probably won’t want to get into right now, it’s real estate. Sure, it sounds great to be a landlord with the ability to make money. But that’s not happening right now. Indeed, being a landlord is no good. It becomes a full time job dealing with claims, insurance, tenants and a lot more. There is a much easier way to bring you residual income and that is through Real Estate Investment Trusts (REITs).
If you have cash, consider investing in REITs as the next dividend stock. These passive income stocks are perfect for investors looking for a lazy way to generate returns. If you make the right decision, the stocks can be an easy, safe, and sustainable choice that will earn you passive income for decades.
But you have to be smart. REITs can currently be volatile. So let’s look at two REITs that fit the bill.
WPT Industrial REIT (TSX: WIR.UN) is the perfect option for a lazy landlord looking to take advantage of the e-commerce boom. WPT Industrial owns over 100 light industrial properties in the United States. These properties are used to store and ship goods for several e-commerce giants.
Shares in WPT Industrial are up about 12% last year at the time of writing. The company is relatively new, which is why its stocks haven’t risen as much as we’ve seen other ecommerce companies. Instead, investors are likely to change dramatically during the earnings season.
So let’s look at the revenue. I don’t like to focus on every line item, but rather the ones that matter to long-term investors. In this case, these are sales and gross margin. Sales grow by leaps and bounds year after year, most recently by 41%. The gross margin is now an unbelievable 77%.
The company has sufficient cash to continue its acquisition strategy. Therefore, investors should see strong growth in the years to come. Meanwhile, at the time of writing, they have access to a dividend yield of 4.91%.
NorthWest Healthcare REIT (TSX: NWH.UN) is another perfect option for the lazy landlord looking to take advantage of the healthcare industry. But NorthWest is also a great option for its diversity. The company has an international portfolio of income-generating healthcare properties that range from office buildings to hospitals.
The company recently had another incredible earnings report with an average lease of 14.5 years! This is in addition to the stable utilization of 97%. So if there is one thing you can get from this inventory, it will be stable for years if not decades.
The company’s shares are up 17% over the past year and 125% over the past five years. It now offers a dividend yield of 6.17% at the time of writing. All of this could explode, however, as the company officially signed a $ 3 billion European joint venture last quarter.
If there are two industries that will continue to thrive after the pandemic, healthcare and e-commerce. However, you don’t have to take any risk to see returns. Instead, you can invest in REITs like these two and get the best of both worlds. You will earn stable dividends for years, with returns right next to it.
Amy Legate-Wolfe, a contributor to The Fool, owns shares in NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.