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3 Dividend Stocks Perfect for Gen Z Investors
The Motley Foolยท 2025-09-20 07:21
Core Viewpoint - Gen Z investors show a strong preference for dividend stocks, particularly real estate investment trusts (REITs), which is significantly higher than that of retiring baby boomers [1] Group 1: American Tower - American Tower operates over 150,000 communication sites globally and owns several U.S. data center facilities, positioning itself at the intersection of real estate and technology [3] - The REIT's infrastructure supports mobile networks essential for Gen Z's communication needs, including texting and social media [4] - American Tower's current dividend yield is 3.5%, nearly triple that of the S&P 500, with expectations for future growth in dividend payments due to increasing demand for its infrastructure [5] Group 2: EPR Properties - EPR Properties focuses on experiential real estate, catering to Gen Z's preference for experiences over possessions, such as eat-and-play venues and wellness properties [6][7] - The REIT offers a monthly dividend yield of 6.3%, supported by predictable rental income from its properties [7] - EPR Properties sees a future investment opportunity exceeding $100 billion in experiential real estate and plans to invest $200 million to $300 million in new properties this year [8] Group 3: Invitation Homes - Invitation Homes addresses the rental trend among Gen Z, who face challenges in home buying due to high interest rates and prices, thus unable to build home equity [9][10] - The REIT manages over 110,000 single-family rental homes across 16 major U.S. housing markets, generating income to support a nearly 4% dividend yield [10] - Invitation Homes is actively expanding its portfolio through partnerships with homebuilders to create build-to-rent communities, catering to the housing needs of younger generations [11] Group 4: Investment Appeal for Gen Z - American Tower, EPR Properties, and Invitation Homes are well-positioned to meet the needs of Gen Z investors, providing a growing stream of passive income that can help achieve financial goals [12]