Real estate investments can be an excellent way to earn returns, generate cash flow, hedge against inflation and diversify an investment portfolio. But buying physical properties can be costly, difficult and risky. Instead, investors can buy shares of diversified real estate investment trusts, or REITs, which are public companies that own large portfolios of real estate and pay sizable dividends.
There are many different types of REITs, providing investors access to residential, commercial and specialty real estate. Here are nine of the best REITs to buy in 2024, according to Morningstar analysts:
| Stock | Implied upside from Jan. 3 close | Forward dividend yield |
| Crown Castle Inc. (ticker: CCI) | 14.5% | 5.5% |
| Welltower Inc. (WELL) | 15.8% | 2.7% |
| Realty Income Corp. (O) | 31.6% | 5.3% |
| AvalonBay Communities Inc. (AVB) | 27.1% | 3.6% |
| Equity Residential (EQR) | 43.4% | 4.4% |
| Invitation Homes Inc. (INVH) | 20.3% | 3.3% |
| Ventas Inc. (VTR) | 45% | 3.6% |
| Essex Property Trust Inc. (ESS) | 25.6% | 3.8% |
| Host Hotels & Resorts Inc. (HST) | 17.6% | 3.3% |
Crown Castle International is a specialty REIT that owns and operates wireless communications towers. In 2023, Crown Castle shares fell 10.2% including dividends, the worst performance of any stock on this list. On the other hand, the underperformance boosted the stock’s dividend yield and provided a buying opportunity. Analyst…
