The Christmas season is supposed to be the most wonderful time of year…
But let’s face it – when you’re short on cash due to high interest rates and rampant inflation… it can be a little harder to stay jolly.
Especially when you have long list of gifts to buy for friends and family…
So while I can’t do anything directly about your checkbook this year, I can share one opportunity to help you meet 2024’s financial holiday planning.
Here at Intelligent Income Daily, we look for investment plays that can brighten your future and increase your bottom line. And the best of the best are faithful dividend-paying stocks and other income opportunities that keep the cash coming.
And there are few dividend-paying stocks better than real estate investment trusts (REITs).
Today I’ll share one free REIT recommendation as a stocking stuffer for your portfolio.
The Best REITs Shine Bright All Year Long
If you need a refresher, REITs are designed to be stable dividend payers. By law, they must payout out 90% of their otherwise taxable income to shareholders via quarterly or monthly payments.
This provides investors with two reassurances:
- It’s more difficult for REITs to throw money around at foolish endeavors.
- It’s more difficult for them to cut their dividends.
Both do happen, mind you. REITs, like any other asset out there, aren’t perfect.
But the right ones can provide immense comfort and wealth-compounding capability when the economic sun is not shining and investors need to pinch pennies.
And we’re experiencing both conditions right now.
For one thing, CBS News recently reported that based on recent government data, the typical American household “must spend an additional $11,434 annually… to maintain the same standard of living they enjoyed” in January 2021.
For another, while Black Friday and Cyber Monday sales both rose significantly year over year… Those figures came with a definite caveat.
Adobe Analytics found that “U.S. shoppers pounced on deep online discounts during Cyber Monday to set a new spending record…”
Notice those key words “deep” and “discounts,” which also happened to be on Black Friday.
Retailers are well aware of consumers’ increasing concerns and knew no ordinary deals would do as I wrote about a couple weeks ago.
They also know Black Friday and Cyber Monday spending might have made up the bulk of Christmas spending this year.
That’s just what happens when people are struggling with their finances.
REITs Like This Could Change Your Game
Although you wouldn’t suspect it now, I have had my fair share of stressing out over the holidays due to money problems.
2009 was a very bad year for me and my family, and 2010 was rough too.
I had five children to feed when the housing bubble burst in 2008 and I lost almost everything.
So it’s safe to say I have a soft spot for people struggling – through no fault of their own or otherwise. (I, to a large degree, fell into the latter category, if you must know.)
That’s why I’m always on the lookout for solid stocks that can help me sleep well at night.
As my holiday treat to you, I wanted to provide an attractive stocking stuffer that could help you and your loved ones with some delightful dividends.
Americold (COLD) is an industrial REIT that owns temperature-controlled warehouses that play an essential role in the food supply chain.
These buildings are mission critical because they connect food producers to distributors and retailers.
Some of Americold’s tenants include well-known names such as Unilever, General Mills, Kraft Heinz, Tyson, Ahold Delhaize, and Walmart.
Combined – the top 25 tenants make up roughly 48% of warehouse revenues, and no one tenant makes up more than 5% of revenue (a great example of diversification).
Analysts forecast solid growth of 13% in 2024 and 15% in 2025, which makes this pick especially appealing.
And as of writing this, it’s trading at just 23 times earnings. That’s a 25% discount.
If that isn’t reason enough to buy it, we expect shares could return over 20% in 2024.
So don’t get discouraged this holiday season. Let this stocking stuffer work for you and add a little income to your portfolio.
Wishing you a wonderful Christmas holiday weekend with your friends and family…
Happy SWAN (Sleep Well at Night) investing,
Brad Thomas
Editor, Intelligent Income Daily
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Source: Wide Moat Research