Day: October 22, 2024

Medical Properties Trust

Medical Properties Trust Inc. (NYSE:MPW) is a healthcare-focused REIT that acquires and develops net-leased hospital facilities. It’s among the top high-yield REITs in the portfolio of the investor, earning $5,300 per month in dividend income. MPW has a yield of over 6.5%. MPW shares are up 5% so far this year.

The Redditor had about 6,437 shares of Medical Properties Trust in his portfolio, generating $3,862 in annual dividend income.

Realty Income

Realty Income was among the Redditor’s biggest positions, earning $5,300 per month in dividends. He owned about 829 shares of the monthly dividend stock. Realty Income yields over 5% and has raised dividends for 30 consecutive years. Analysts believe Realty Income Corp (NYSE:O) has better days ahead as its tenants include retailers who will see more foot traffic amid a decline in inflation and interest rate cuts. Earlier this month, Mizuho Securities affirmed its Outperform rating on the stock with a $64 price target.

Stag Industrial
Stag Industrial (NYSE:STAG) is an industrial REIT that pays monthly dividends. Its dividend yield is about 3.8%. The stock made up a negligible part of the Redditor’s portfolio. STAG shares are up 14% so far this year.

VICI Properties

VICI Properties Inc. (NYSE:VICI) was another high-yield REIT stock in the investor’s portfolio earning $5,300 a month in dividend income. New York-based VICI Properties Inc. (NYSE:VICI) is a real estate investment trust focusing on casinos, entertainment and hospitality facilities. The company owns some of the world’s most famous entertainment properties, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas. VICI has a dividend yield of about 5.2%.

WP Carey Inc

With a dividend yield of 5.8%, WP Carey Inc (NYSE:WPC) is among the top net lease REITs with over 1,200 properties in the U.S., Europe and other parts of the world. Retail stores, restaurants, automotive companies and grocery stores are among the REIT’s tenants. The Redditor earning $5,300 per month in dividend income had just 126 shares of the company in his portfolio.

The current interest rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through publicly-traded 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 August. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.

Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

This article Dividend Investor Making $5,300 a Month Shares His Portfolio: Top 6 High-Yield REIT Stocks You Shouldn’t Miss originally appeared on Benzinga.com

Broadcom said sales of its Tomahawk 5 and Jericho3-AI Ethernet switches grew fourfold (year over year) during Q3. That isn’t surprising given the strength of its accelerators business, and Nvidia’s GPU business, for that matter. Tech giants are spending tens of billions of dollars building AI data centers right now, which is a powerful tailwind for Broadcom’s networking equipment.

Broadcom generated $13.1 billion in total revenue across all of its businesses in Q3, which was a 47% increase from the year-ago period. Of that, $3.8 billion was attributed to the inclusion of VMware’s revenue. Broadcom closed the acquisition of that company in 2023, and only started reporting its revenue on a consolidated basis this year, which is temporarily inflating its total revenue growth.

Broadcom said AI products and services contributed $3.1 billion to its overall revenue during the quarter, and that could be the fastest-growing part of the entire organization going forward. In the upcoming fourth quarter, Broadcom expects to deliver $3.5 billion in AI revenue. This will represent a sequential increase of over 10%, compared to forecasted sequential growth of just 6.8% for its total revenue overall (which is expected to come in at $14 billion).

Broadcom is on track to generate a record $51.5 billion in total revenue for fiscal 2024. The company originally expected AI to account for $11 billion of that figure, but the segment has been so strong that management recently increased its forecast to $12 billion.

Broadcom isn’t consistently profitable on a GAAP accounting basis, so we can’t use the traditional price-to-earnings (P/E) ratio to value its stock. However, we can use the price-to-sales (P/S) ratio, which divides the company’s market capitalization by its trailing 12-month revenue.

Based on that calculation, Broadcom’s P/S ratio is currently 17.6. To be clear, that is not cheap — it’s close to double the stock’s average P/S ratio of 8.9 over the last five years.

However, Broadcom’s strong AI growth under the surface of its total revenue is enticing investors to pay a premium for its stock. As I mentioned, Broadcom only has to gain 19% from here to join the $1 trillion club, so if its P/S ratio remains constant, it simply has to grow its revenue by 19% in fiscal 2025 (which begins in December this year) to get there.

Wall Street expects Broadcom’s revenue to grow by 17.5% in fiscal 2025, which is in the ballpark. However, since the company raised its fiscal 2024 AI revenue forecast by a whopping $1 billion last quarter alone, there is a very strong possibility that the Street’s estimate for next year is low.

Nvidia CEO Jensen Huang believes data center operators will spend $1 trillion building AI infrastructure over the next five years. If he’s right, I think there is a good chance Broadcom will blow away all expectations in 2025.

The key risk in my prediction is that Broadcom’s P/S ratio could shrink because investors become averse to stocks with high valuations, which could add years to its journey toward the $1 trillion club. That’s something to keep in mind before buying in. But as long as investors maintain a long-term horizon of five years or more, they still have the potential to do very well in this stock.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Prediction: 1 Unstoppable Stock Will Join Nvidia, Apple, Microsoft, Amazon, Alphabet, and Meta in the $1 Trillion Club In 2025 was originally published by The Motley Fool

Also see: Gold may not reach a price ceiling anytime soon. Here’s why.

Silver has “lagged and frustrated many investors for a very long time,” Spina said. “[The] same goes with the gold and silver stocks, but the long period of frustration is meting away.”

Miners are a “screaming buy — their profit margins are exploding, their share prices [are] lagging,” he added, while “volumes are light” and the sector has gone unnoticed.

Read: Gold miners ETF on pace for highest close since 2020 even as U.S.s tock market falls

The Philadelphia Gold and Silver Index XAU, which tracks precious-metals mining companies traded on the Philadelphia Stock Exchange, has climbed over 30% this year.

The relative lag in silver prices and related stocks, however, means an “aggressive catch-up period is starting,” Spina said, noting that as he’s seen in the past, “years of frustration [can] flip in a blink of an eye.”

Gold and silver stocks “appear to be starting their melt-up stage, just as expected,” with silver prices breaking through a key resistance and the gold-silver ratio “crumbling,” he said. “This is when gains can come in viciously fast — when the years of frustrations can flip quickly.”

As of Monday, it would take nearly 81 ounces of silver to buy one ounce of gold. The average price ratio for the modern era stands at around 55 ounces of silver to one ounce of gold, according to CMC Markets. A higher ratio suggests that there may be an opportunity for silver prices to outperform gold.

Spina said the run-up in silver prices toward $40 or more represents more of a “monetary interest” rather than an indication about economic prospects.

Read: U.S. economy poised for somewhat slower growth, leading indicators signal

Silver is “following gold’s lead,” and investors are recognizing that the four-year structural supply deficit for silver is “one that will not resolve itself without higher prices,” he said.

Still, don’t be surprised if a move to $40-plus in silver “takes some dips along the way,” Spina added. “Volatility will be very high and there will be sharp pullbacks.”

For now, the lower $30s look like a “solid support floor” for prices, he said.