If You Invested $1,000 In UDR Stock 20 Years Ago, How Much Would You Have Now?

UDR, Inc. UDR is a real estate investment trust that owns, operates, acquires, renovates, develops, redevelops, disposes of, and manages multifamily apartment communities in targeted markets in the United States.

The company is set to report its Q3 2024 earnings on October 24. Wall Street analysts expect the company to post an EPS of $0.62, down from $0.63 in the year-ago period. According to data from Benzinga Pro, quarterly revenue is expected to be $418.02 million, up from $408.36 million in the year-ago period.

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If You Bought UDR Stock 20 Years Ago

The company's stock traded around $20.10 per share 20 years ago. If you had invested $1,000, you could have bought approximately 50 shares of UDR stock. Currently, shares are trading at $44.92, which means your investment's value could have soared to $2,235 due to stock price appreciation. But wait, the company also paid dividends during these 20 years. 

UDR’s dividend yield is currently 3.78%. Over the last twenty years, it paid around $19.23 in dividends per share, which means you could have made $956 from dividends alone. 

Summing up $2,235 and $956, we end up with the final value of your investment, which is $3,191. This is how much you could have made if you had invested $1,000 in UDR stock 20 years ago. This means a total return of 219.1%. However, this figure is significantly less than the S&P 500 total return for the same period, which was 548.28%.

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What Could The Next 20 Years Bring? 

UDR has a consensus rating of Neutral and a price target of $44.58 based on the ratings of 26 analysts. The price target implies a potential downside of less than 1% from the current stock price.

Check out this article by Benzinga for 10 analysts' opinions on UDR stock.

On July 30, UDR reported its Q2 2024 earnings, posting an FFOA per diluted share of $0.62, better than the consensus of $0.61. Revenues were $413.33 million, missing the expected $414.11 million.

"Strong employment growth and relative affordability compared to other forms of housing translated into near-record high absorption for the industry in the first half of the year, leading to results that met the high-end of our FFOA per share expectations," said Tom Toomey, UDR's Chairman and CEO. "Supported by more robust pricing power than anticipated, the strength of our operating platform, and an innovative culture that continues to generate value-creating initiatives, we are raising full-year 2024 FFOA per diluted share and same-store growth guidance expectations to reflect our strong positioning in the marketplace."

Net Income per diluted share for 2024 is now expected to be $0.35 to $0.43, and FFOA per diluted share is expected to be between $2.42 and $2.50.

In summary, income-focused investors may not find UDR stock attractive, given the modest historical stock price appreciation and no expected upside potential. However, the stock can be a good choice for income-focused investors who benefit from the company's solid dividend yield of 3.78%.

Looking For Yields? Check out this article by Benzinga for three more stocks that are consistent moneymakers.

Can You Do Better Than UDR?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through REITs.

Arrived Homes, the Jeff Bezos-backed investment platform has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. It paid 8.1% in July. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

As long-term rates go down and short-term rates stay high, there’s a unique chance to invest in fix & flip loans before yields drop. Check out Benzinga's favorite high-yield offerings.