As Homeownership Falls Out Of Reach, Millennials And Gen Z Are Squeezing Entry Into Real Estate With These 3 Stocks

With the dream of homeownership becoming more elusive for Millennials and Gen Z, real estate investment trusts (REITs) emerge as a compelling opportunity. Residential REITs own, operate, or finance income-generating real estate, such as single-family homes and apartment communities and allow individuals to invest without having direct ownership or management responsibilities. 

REITs must also distribute a large percentage of their taxable income to shareholders as dividends, often leading to high yields. Let's look at three high-quality REITs you could invest in today to gain exposure to the residential real estate market.

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Invitation Homes

Invitation Homes INVH is one of the largest homeowners in the United States. As of June 30, its portfolio comprised 109,506 homes, including 84,640 wholly-owned homes, 7,605 joint-venture-owned homes and 17,261 managed-only homes.

Invitation Homes currently pays a quarterly dividend of $0.28 per share, which equates to an annualized dividend of $1.12 per share and gives it a yield of about 3.1% at the time of this writing.

In addition to offering a high yield, Invitation Homes has an impressive track record of dividend growth. It has raised its annual dividend payment every year since its initial public offering in 2017, putting it on track for 2024 to mark the seventh consecutive year with an increase.

American Homes 4 Rent 

American Homes 4 Rent AMH, like Invitation Homes, is one of the largest homeowners in the United States. As of June 30, its portfolio comprised 58,860 single-family homes across more than 30 markets in 21 states.

AMH currently pays a quarterly dividend of $0.26 per share, which equates to an annualized dividend of $1.04 per share and gives it a yield of about 2.6% at the time of this writing.

AMH has also been growing its dividend in recent years. It has raised its annual dividend payment each of the last three years and its 18% hike in February puts it on pace for 2024 to mark the fourth consecutive year with an increase.

Check It Out: A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.
This is a paid advertisement. Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship Fund before investing. This and other information can be found in the Fund's prospectus. Read them carefully before investing.

mid-America Apartment Communities

mid-America Apartment Communities MAA is a leading owner and manager of apartment communities in the United States. As of June 30, it owned or had interests in approximately 103,600 apartment units, including those in developing communities. 

MAA currently pays a quarterly dividend of $1.47 per share, which equates to an annualized dividend of $5.88 per share and gives it a yield of about 3.6% at the time of this writing.

Like Invitation Homes and AMH, MAA has been a consistent source of dividend growth for its investors. It has raised its annual dividend payment for 13 consecutive years and its 5% increase last December has it on pace for 2024 to mark the 14th consecutive year with an increase.

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