Core Viewpoint - The article suggests that adding real estate investment trusts (REITs) to an investment portfolio can help mitigate volatility while potentially enhancing long-term growth and net gains [2][4]. REIT Overview - REITs are traded like stocks but focus on revenue-generating real estate, including various property types such as apartments, hotels, and office buildings [3]. - They are capital-intensive but are well-suited for reliable dividend payments, as they must distribute at least 90% of net profits to shareholders, avoiding corporate-level taxation on this income [4]. Performance Comparison - Over the past 10 years, the S&P 500 has averaged an annual net gain of 11.1%, while the FTSE Nareit All Equity REIT Index has only achieved 7.2% [6]. - In the last five years, the S&P 500's average total return is 15.3%, significantly outperforming the FTSE Nareit's 5.5% [6]. - However, over periods exceeding 20 years, the FTSE Nareit All Equity REIT Index has historically outperformed the S&P 500 [7]. Recommended REITs Realty Income - Realty Income owns over 15,500 retail properties with a market-leading occupancy rate of 98.7% and has paid monthly dividends for 55 years, increasing its quarterly payout for 28 consecutive years [9][11]. - Current market cap is $54 billion, with a dividend yield of 5.54% [10]. American Tower - American Tower operates approximately 42,000 tower sites in the U.S. and generated $2.7 billion in revenue during Q3 2025, marking a 7.7% year-over-year increase [13]. - The market cap is $79 billion, with a dividend yield of 4.04% [14]. Digital Realty Trust - Digital Realty Trust focuses on data centers, including those for artificial intelligence, and reported a 10% revenue increase to $1.6 billion in Q3 [17]. - The company is projected to grow significantly, with the data center infrastructure industry expected to expand at an average annual rate of 13.4% through 2034 [18]. - Current market cap is $54 billion, with a dividend yield of 3.08% [19].

Key Points REITs generate lots of stable income, the bulk of which they must pay out in dividends. Prologis should be the largest dividend payer in the REIT sector this year. Several of the largest REIT dividend payers will likely increase their payments in 2026. 10 stocks we like better than Realty Income › Real estate investment trusts (REITs) must distribute 90% of their taxable income to investors each year. As a result, they tend to pay out a substantial amount of money in dividends. S&P Glo ...

Core Insights - The article emphasizes that artificial intelligence (AI) relies not only on chips but also on the supporting infrastructure, including data centers, networking, and systems integration [2][3][9] Group 1: Infrastructure Providers - Digital Realty Trust (NYSE: DLR) operates over 300 data centers globally, focusing on wholesale colocation space and has seen record AI-driven leasing activity, raising guidance multiple times for 2025 as hyperscalers pre-commit capacity [5][6] - Equinix (NASDAQ: EQIX) runs more than 270 data centers and is increasing capital expenditures to $4 billion to $5 billion annually through 2029 to enhance AI-ready capacity, including facilities designed for high-density GPU deployments [7] Group 2: Networking and Component Suppliers - Arista Networks (NYSE: ANET) specializes in cloud networking switches and software for data centers, with its 400G and 800G platforms being deployed in AI cluster fabrics to prevent network bottlenecks during training runs [10]

Group 1 - The stock market is currently experiencing high valuations, with major indexes at or near all-time highs, making it challenging to find attractively priced investments [1] - High-dividend stocks, particularly real estate investment trusts (REITs), present a notable exception, offering sustainable dividends at attractive valuations [2] Group 2 - Healthpeak Properties (NYSE: DOC) is a leading REIT specializing in healthcare properties, focusing on outpatient medical facilities, lab facilities, and continuing care retirement communities (CCRCs) [3][4] - Despite a challenging growth environment for REITs due to high interest rates, Healthpeak has successfully added value through strategic acquisitions, such as Physicians Realty Trust [5] - Healthpeak offers a 6.4% dividend yield, well-supported by profits, and trades at approximately 10.3 times its 2025 funds from operations (FFO) guidance, significantly lower than the average P/E ratio of S&P 500 stocks [6]

Core Viewpoint - American Tower Corporation (NYSE: AMT) is rated as a Hold for investors focused on capital appreciation in the real estate investment trusts (REITs) sector, as it plays a crucial role in leasing towers that connect devices to the internet, which are essential for modern life [1] Company Overview - American Tower Corporation leases communication towers that facilitate connectivity for devices such as smartphones, highlighting its importance in the telecommunications infrastructure [1] Investment Considerations - The company is positioned within the REITs sector, appealing to investors looking for capital appreciation opportunities [1]

Core Insights - Real estate remains a timeless asset that continues to generate wealth for individuals today [1] - Real Estate Investment Trusts (REITs) allow individuals to invest in real estate without needing significant capital or expertise [2] Group 1: Prologis - Prologis specializes in logistics and data center properties, owning nearly 5,900 buildings across 20 countries [5] - The company enhances property value through high maintenance standards and energy efficiency [6] - Prologis has an 11-year streak of consecutive dividend increases, with a current dividend yield of 3.6% and strong growth prospects in e-commerce and data centers [7] Group 2: NNN REIT - NNN REIT has raised its dividend for 36 consecutive years, demonstrating resilience through economic challenges [8] - The company owns over 3,600 buildings, focusing on consumer-facing tenants, and utilizes triple net leases for revenue stability [9] - NNN REIT offers a current yield of 5.5%, with low to mid-single-digit growth, emphasizing stability over rapid growth [10] Group 3: Public Storage - Public Storage is the largest owner-operator of self-storage facilities, with over 3,400 properties in the U.S. and Europe [11] - The company has invested $11 billion since 2019 to expand its portfolio by 35%, although this has affected consistent dividend growth [11][12] - The stock currently yields 3.9%, providing a dependable income stream, with expected low to mid-single-digit growth over the next few years [13]