Marc Benioff said Microsoft’s Copilot AI hasn’t lived up to the hype.

The Salesforce CEO said on the company’s second-quarter earnings call that its own AI is nothing like Copilot, which he said was unimpressive.

“So many customers are so disappointed in what they bought from Microsoft Copilot because they’re not getting the accuracy and the response that they want,” Benioff said. “Microsoft has disappointed so many customers with AI.”

Microsoft Copilot integrates OpenAI’s ChatGPT tech into the company’s existing suite of business software like Word, Excel, and PowerPoint that comes with Microsoft 365. Launched last year, Copilot is meant to help companies boost productivity by responding to employee prompts and helping them with daily tasks like scheduling meetings, writing up product announcements, and creating presentations.

In response to Benioff’s comments, Jared Spataro, Microsoft’s corporate vice president for AI at work, said in a statement to Fortune that the company was “hearing something quite different,” from its customers.

“When I talk to CIOs directly and if you look at recent third-party data, organizations are betting on Microsoft for their AI transformation,” he said.

The company’s Copilot customers also shot up 60% last quarter and daily users have more than doubled, Spataro added.

Benioff’s comments come as he prepares to show off Salesforce’s new AI platform, dubbed Agentforce, at the company’s annual Dreamforce meeting next month. The platform will be targeted at sales and customer service at first and will launch publicly in October.

Meanwhile, Agentforce is already being used by some of Salesforce’s biggest customers including payroll and HR software company ADP, restaurant reservation platform OpenTable, and the Wyndham hotel chain, Benioff told CNBC. He added that its Agentforce AI agents were resolving more than 90% of ADP’s customer service inquiries.

On the earnings call, Benioff predicted Agentforce AI agents are going to be a breakthrough for its customers.

“With our new Agentforce platform, we’re going to make a quantum leap for AI,” he said.

This story was originally featured on Fortune.com

(Bloomberg) — Landlords for offices, apartment complexes and other commercial real estate have $1.5 trillion of debt due by the end of next year, and about a quarter of that borrowing could be hard to refinance, according to Jones Lang LaSalle Inc.

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The value of buildings has broadly dropped after higher interest rates boosted funding costs for property owners. Those lower valuations make it harder for landlords to borrow as much, forcing many property owners to raise equity capital to secure new debt or extend their existing facilities.

Apartment buildings, which make up about 40% of the looming maturities, are at the center of the refinancing wave, the broker says. Many US owners of the assets known as multifamily bought their properties using three-year floating rate loans during the easy money era. Interest rate increases since then have eaten up much of their rental income, making it a challenge to secure additional equity.

Rising insurance costs and falling values have added to the pain, leaving about $95 billion of the US properties in distress or at risk of becoming so, according to data compiled by MSCI Real Assets.

“A large portion of the multifamily world is underwater at the moment,” said Catie McKee, director and head of commercial-mortgage backed securities trading at Taconic Capital Advisors. “A lot of the equity is gone, but it’s an asset class that is pretty resilient over time. It’s underwritable, it just needs a capital infusion.”

The looming debt maturities are also a potential headache for Wall Street after many of the floating-rate loans were bundled into the $80 billion commercial real estate collateralized loan obligation market and sold off as bonds to investors. Even so, trouble in the commercial real estate market isn’t seen by investors as a systemic issue for banks.

In response to higher borrowing costs, CRE CLO lenders are modifying loans to try to help keep borrowers afloat until interest rates drop, additional equity can be injected or junior debt such as mezzanine loans can be secured.

With the outlook for interest rates cuts becoming clearer, there’s optimism that large scale distress can be avoided in the wider CRE market.

The number of lenders submitting quotes for debt refinancings has doubled on average this year, said Matthew McAuley, a research director at JLL, who said the funding gap is $200 billion to $400 billion at present.

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‘Constrained Cycle’

While some traditional lenders are focused on working out their problem loans, other banks, life insurers and direct lenders are willing to extend more credit, he said.

“It’s been a more constrained cycle this time around,” McAuley added. “Banks don’t want to take over assets if they can put a new business plan in place and get an exit.”

As a result, debt funds may find fewer opportunities to deploy capital than expected, said Willy Walker, Chief Executive Officer at Walker & Dunlop Inc.

“The cycle has healed to the point of CMBS coming back, the agencies are coming back, and banks have started to lend back into commercial real estate,” he said on a video call with reporters earlier this month.

Click here to listen to this week’s Credit Edge podcast.

Week in Review

• September and the beginning of October might be the last opportunity that US investors have to buy newly issued high-yield debt this year.

• Companies are pulling back on bond issuance in China’s domestic market, with deal cancellations rising to the highest level since April amid Beijing’s efforts to cool a recent debt rally.

• Lumen’s restructuring — considered the poster child for creditor violence — has become one of the most successful distressed trades of the year, even for those that got left behind.

• Investors are set to have their first shot at buying European collateralized loan obligations through an exchange-traded fund, following the growth of the asset class into a multi-billion dollar market in the US.

• China’s credit market got its first floating-rate corporate bond in more than four years, offering investors an option to hedge against rising rates after yields saw their biggest monthly jump since 2022.

• Country Garden Holdings Co. told some investors that it is considering further extending payments on some of its yuan bonds, as a prolonged sales slump adds to the Chinese developer’s financial stress.

• Alimentation Couche-Tard Inc., a convenience store operator, plans to issue debt and tap its pension shareholders to finance a proposed deal to buy out 7-Eleven owner Seven & i Holdings Co.

• Deutsche Bank AG will lead a $4.325 billion bond-and-loan offering to help finance the buyouts of two casino-equipment firms that had planned to merge before Apollo Global Management Inc. swooped in with a $6.3 billion bid.

• Vista Equity Partners is in talks with both Wall Street banks and direct lenders to obtain around $1 billion of debt financing to support its acquisition of software company Jaggaer.

• Global alcohol maker Diageo Plc sold new long-dated euro debt as part of a bumper corporate bond offering, with new issuance stepping up a gear in Europe’s primary market.

• Blackstone Inc. is in discussions with banks for a five-year loan of about A$5.5 billion ($3.7 billion) to back its bid for Australian data center operator AirTrunk.

• Bankrupt health care system Steward Health Care has found buyers for six of its Massachusetts hospitals after state authorities provided a $30 million lifeline.

• The largest shareholder of ailing Brazilian airline Gol Linhas Aereas Inteligentes SA is nearing a deal to raise $1.3 billion of funds from investment firm Castlelake LP to stave off the risk of defaulting on its bonds.

On the Move

• Carlyle Group Inc. partner Massimiliano Caraffa is in the process of leaving the firm after spending the past two decades at the US-listed alternative asset manager.

• Corbin Capital Partners has recruited Holly Cunningham from JPMorgan and Justin Smith from Bank of America as research analysts, to focus on both alternative asset and private credit research.

• Theresa Shutt has stepped down as head of corporate debt at Fiera Capital Corp.’s private debt unit.

• Mizuho Americas has hired Thierry Perrein as a managing director and credit strategist, adding to its fixed-income business.

• Bradesco Asset Management, Brazil’s third-largest fund manager, has doubled its private credit team in the past two years as a booming corporate-debt market helps the industry weather slumping demand for other types of investments.

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Even after a steep plunge earlier in August, Bitcoin (CRYPTO: BTC) is still up almost 40% for the year. That’s the good news. The bad news is that Bitcoin recently dipped below $60,000 again, and shows few, if any, signs of rebounding anytime soon. During the past 30 days, Bitcoin is down 11%. In fact, August is shaping up to be Bitcoin’s worst month since April.

But I think many of the fears of the Bitcoin bears may be overstated. In fact, I’m predicting that the next big move for Bitcoin will be a rebound to $100,000 by year-end.

Why is Bitcoin falling?

As a first step, it’s important to figure out why Bitcoin has been falling. The best explanation, from my perspective, is that inflows into the new spot Bitcoin exchange-traded funds (ETFs) are slowing, and that’s putting a brake on any upward Bitcoin price action. Since the launch of the new spot ETFs in January, the steady inflow of new money into Bitcoin is what has pushed up prices. So if these inflows dry up, then it makes sense that Bitcoin is going to trade sideways or down.

Moreover, investors were obviously spooked by the August flash crash, when the price of Bitcoin and other cryptocurrencies collapsed literally overnight. So, from a sentiment perspective, it makes sense that investors are becoming much more cautious about which risk assets they are willing to put their money into. The new narrative is that investors are rushing to pull their money out of Bitcoin so that they can put it into Nvidia (NASDAQ: NVDA).

Thus, for Bitcoin to begin its ascent to $100,000, investor sentiment needs to improve and inflows into the new spot Bitcoin ETFs need to return to their former pace. And this appears to be what is happening. During the final days of August, the spot Bitcoin ETFs posted eight straight days of positive inflows.

Key catalysts ahead

There are two key catalysts that could help to boost ETF inflows and restore investor confidence in Bitcoin. The first is the Bitcoin halving, which took place back in April, cutting the rate of new coin creation. At the time, it was heralded as the most important crypto event of the year, and was supposed to result in Bitcoin skyrocketing in price. Until now, though, the halving has been a nothing-burger, and many investors may have forgotten about it entirely.

But there is growing reason to expect that the real impact of the halving will begin to be felt as we head into the final months of the year. For example, historical evidence suggests that it takes at least 200 days after the date of the halving for Bitcoin to kick into a higher gear. And guess what: 200 days from the time of the Bitcoin halving on April 19 brings us to the end of October as the potential start date of a new Bitcoin bull market cycle.

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This is the same pattern that occurred during the previous Bitcoin halving cycle in 2020. As can be seen from the chart below, Bitcoin meandered along during the summer and early fall after its halving event in May, before kicking into a new higher gear in the final months of the year. There’s no guarantee this same pattern will occur again, of course, but my fingers are crossed.

The second key catalyst is the U.S. presidential election. Pro-crypto sentiment appears to be building on both sides of the political aisle and Bitcoin has actually emerged as a campaign issue. The greatest impact would be felt if the Republicans win the White House, because Donald Trump is the first presidential candidate ever with a pro-Bitcoin agenda.

But there is reason to think that the Democrats, too, could be persuaded to pass sweeping pro-crypto legislation that makes it much more enticing to invest in Bitcoin. Either way, Bitcoin could benefit from a so-called relief rally as investors pile back into crypto in November.

How likely is $100,000?

Admittedly, for Bitcoin to almost double in price and hit $100,000 by the end of the year, a lot of things will need to go right. But if ETF inflows revive, and if crypto sentiment once again turns bullish, it might just happen. Keep in mind, too, that there could be a number of positive surprise events — such as China reversing its ban on crypto — that could unlock a tremendous amount of upside potential for Bitcoin.

Throughout Bitcoin’s 15-year history, a strategy of buying the dip has usually paid off for investors. And I don’t think this time will be any different. This might be the last time to buy Bitcoin at such a discounted price. By the end of the year, six-figure Bitcoin could be the new normal.

Should you invest $1,000 in Bitcoin right now?

Before you buy stock in Bitcoin, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $720,542!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of August 26, 2024

Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and Nvidia. The Motley Fool has a disclosure policy.

Prediction: This Will Be Bitcoin’s Next Big Move was originally published by The Motley Fool

If you’re planning on making tax-deferred retirement accounts the last pot of money you tap after retirement, you’ve got a lot of company. And why not? The idea that your 401(k) or traditional IRA can keep growing and churning out more tax-deferred money seems like a sound strategy.

But you may want to rethink this conventional wisdom. Instead of focusing on deferring taxes, Morningstar’s Mark Miller suggests looking at how to minimize your overall total taxes during retirement – which can mean tapping tax-deferred accounts first.

A financial advisor can help you decide on an order in which to tap your retirement accounts. 

“The idea is to use dollars in 401(k) or IRA accounts to meet living expenses — or convert a portion of these assets to Roth IRA accounts — before claiming Social Security in years when your marginal tax rate is lower than it will be after you start to receive benefit,” Miller writes.

Tax Considerations in Retirement

One consideration Miller highlights is the fact that collecting Social Security benefits while making withdrawals from tax-deferred retirement accounts will very likely mean you’ll pay taxes on your Social Security benefits.

Single tax filers who bring in between $25,000 and $34,000 in what the IRS calls “combined income” can be taxed on 50% of their Social Security benefits. Meanwhile, those who earn over $34,000 in combined income will pay taxes on up to 85% of their benefits. The limits for joint tax filers are $32,000 and $44,000. (Combined income is your adjusted gross income, plus nontaxable interest income from bonds and half of your Social Security benefits.)

As Miller notes, when Social Security benefits first became taxable in 1984 and then extended in 1994, the legislation didn’t include adjustments to the income levels that trigger what some advisers call the “tax torpedo.” This refers to the combined effect that earned income and Social Security have on a retiree’s tax liability.

“The original idea was to tax only relatively high-income beneficiaries, and that remains the case. But the number of people affected is rising. That’s because Social Security benefits are indexed to wage growth and adjusted for inflation, while the income threshold levels used to determine the taxable amount of Social Security benefits are fixed by law and not indexed for wage growth or inflation.

What You Can Do

Aside from drawing down tax-deferred accounts before claiming Social Security, one way to sidestep this “tax torpedo” is by having Roth assets.

Remember, for someone in the 22% tax bracket, each $1 of compounded earnings in a taxable 401(k) or traditional IRA yields just 78 cents – plus the potential tax triggered on Social Security benefits. But every $1 of compounded earnings in a tax-free Roth IRA equates to $1 of retirement income. And because it’s non-taxable, it doesn’t count toward your combined income.

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One of the many considerations for retirees is figuring out how to complete Roth conversions in the most tax-efficient manner possible. Doing so will mean you’ll have more tax-free money to draw upon without adding to your combined income. But you’ll want to keep the amount of money you convert low enough so you’re only subject to the lowest income tax brackets.

Alternatively, you could rely strictly on cash from taxable accounts to meet living expenses early in retirement, allowing yourself to delay Social Security benefits. Remember, Social Security increases by 8% every year between your full retirement age (67 for most people today) and age 70. A financial advisor can help you weigh your options for your retirement income strategy.

Figuring out how to make this work means each individual will need to run their own numbers, a task that’s not too difficult for people projecting the impact of withdrawals from an IRA plus collecting Social Security benefits. People with additional concerns or complex situations can consult with a financial advisor or tax planner. They can also turn to a lower-cost service like Income Strategy, which calculates Social Security and drawdown sequencing, as Miller notes.

Bottom Line

Tapping your tax-deferred assets first can help lower your total tax burden in retirement, Morningstar’s Mark Miller writes. This flies in the face of conventional wisdom, which dictates you withdraw tax-deferred assets last, allowing them to continue to grow. But this alternative strategy allows you to defer Social Security and maximize your future benefit. Roth conversions are another way you can generate tax-free income in retirement that won’t add to your combined income.

Tax Planning Tips

• A financial advisor can help you plan for retirement taxes and offer advice on how to draw down your assets in a tax-efficient manner. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you 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. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

• If you’re focused on limiting your tax liability in retirement, you may be thinking about moving to a more tax-friendly state. SmartAsset has a retirement tax-friendliness tool designed to help you identify the states that are most and least tax-friendly for retirees.

• Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks.

• Are you a financial advisor looking to grow your business? SmartAsset AMP helps advisors connect with leads and offers marketing automation solutions so you can spend more time making conversions. Learn more about SmartAsset AMP.

Photo credit: ©iStock.com/jacoblund, ©iStock.com/adamkaz, ©iStock.com/Luke Chan

The post Want to Minimize Retirement Taxes? Don’t Follow This Popular Strategy appeared first on SmartAsset Blog.

Flexible metal hose manufacturers aren’t exactly the type of businesses that spring to mind when you think of stocks with market-crushing potential. However, as a leader in this flexible metal hose niche — primarily corrugated stainless steel tubing (CSST) — Omega Flex (NASDAQ: OFLX) proves that monstrous returns can come from all varieties of stocks.

From the company’s initial public offering (IPO) in 2005 through 2021, Omega Flex produced total returns more than six times higher than those of the S&P 500 index. Even after Omega Flex saw its share price decline 74% in the last few years, mainly due to the cyclicality of its operations and its industry, the company’s returns have roughly equaled those of the S&P 500 index since Omega Flex’s IPO.

As alarming as this sell-off has been, I can’t help but see it as a once-in-a-decade opportunity for investors with the patience to buy and hold for a decade at a time. Here’s what makes Omega Flex an attractive investment.

Omega Flex moves hand-in-hand with the U.S. housing market

Omega Flex’s CSST systems provide several advantages over traditional black iron piping for fuel gases in residential and commercial construction. Unlike black iron or copper pipe, which needs threads and separate fittings attached for each bend necessary during construction, Omega Flex’s flexible tubing can be bent by hand and installed in lengthy, uninterrupted lines throughout a building.

In addition to this simplified installation process, Omega Flex’s CSST performs better than rigid piping during earthquakes and lightning strikes, making it more resistant to damage. Thanks to these advantages, CSST now accounts for roughly 50% of fuel gas piping in new and remodeled housing construction in the U.S. — a niche where Omageflex considers itself a leader.

Continuously iterating upon the proprietary rotary manufacturing process it developed in 1995, the company’s production capabilities are as flexible as the CSST it sells, providing its goods on an as-demanded basis.

While this leadership position in a growing niche is promising, the vast majority of Omega Flex’s sales correlate to the cyclical housing industry in the United States.

With its sales moving hand-in-hand with U.S. housing starts, Omega Flex has struggled mightily over the last couple of years. As U.S. housing starts continued to slow as the market battled rising interest rates, the after-effects of high inflation, and an uncertain consumer in general, Omega Flex’s sales dropped in tandem.

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However, research from Zillow shows that the U.S. housing market remains 4.5 million homes short, and consumers are pining for more affordable housing. Over the longer term, this should rejuvenate growth in the number of U.S. housing starts, but when this change will occur is uncertain.

Ultimately, though, with the Federal Reserve set to cut interest rates in September, the tide might be starting to turn for Omega Flex over the shorter term. Best yet, for investors, the company can currently be purchased at what looks like a once-in-a-decade valuation.

A once-in-a-decade opportunity

Regardless of when the turnaround in the growth of U.S. housing starts occurs, investors buying Omega Flex can take solace in the fact that they are getting a top-tier compounder at an excellent price. Even with the company currently in the trough of its business cycle, Omega Flex currently holds a return on invested capital (ROIC) of 24%.

Measuring the company’s profitability compared to its debt and equity, this resilient ROIC is indicative of a wide moat surrounding Omega Flex’s operations. Historically, companies that generate a higher ROIC than their peers have proven to deliver outperforming stock returns, as this article suggests. In addition to this high ROIC, the company has maintained an 18% net income margin despite the challenging macroeconomic environment.

On the valuation side, Omega Flex’s price-to-earnings (P/E) ratio of 25 is near 10-year lows, and its 2.8% dividend yield is at all-time highs.

Despite these large dividend payments amid the challenging operating environment, the company only uses 69% of its net income to fund its payout. Typically distributing the majority of its earnings to shareholders over recent years — including a hefty special dividend in 2019 — management isn’t afraid to return cash to shareholders. With insiders owning 25% of the company’s shares, management is well incentivized to continue growing these dividends — maybe even at an accelerated rate once revenue growth returns.

Ultimately, Omega Flex isn’t the flashiest investment opportunity out there. However, short- and long-term trends are starting to lean in Omega Flex’s favor. With the company’s highly profitable (albeit cyclical) operations available at a once-in-a-decade valuation, I believe it makes for a magnificent dividend stock to buy and hold for decades.

Should you invest $1,000 in Omega Flex right now?

Before you buy stock in Omega Flex, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Omega Flex wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $731,449!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of August 26, 2024

Josh Kohn-Lindquist has positions in Omega Flex and Zillow Group. The Motley Fool has positions in and recommends Zillow Group. The Motley Fool has a disclosure policy.

A Once-in-a-Decade Opportunity: 1 Magnificent Dividend Stock Down 74% to Buy Now and Hold Forever was originally published by The Motley Fool

The real estate sector has been one of the worst-performing parts of the stock market since the Federal Reserve started raising interest rates in 2022, but this has created some opportunities to add top-quality businesses to your portfolio at historically cheap valuations. Here are three in particular that are built to deliver excellent long-term returns that are worth a closer look right now.

The right kind of retail

Realty Income (NYSE: O) is the first real estate investment trust, or REIT, I ever bought, and I’ve been building my position for well over a decade now. If you aren’t familiar, Realty Income owns a portfolio of more than 15,000 single-tenant properties throughout the U.S. and Europe, mostly occupied by retail tenants.

The stock is designed for excellent long-term returns, no matter what the economy does. Its tenants operate mostly in recession-resistant or e-commerce resistant businesses. Think of properties like supermarkets, drug stores, and warehouse clubs. Plus, tenants sign long-term leases that require them to cover taxes, insurance, and maintenance costs. All Realty Income has to do is acquire a property with a high-quality tenant in place, and then enjoy year after year of predictable, growing income.

At recent prices, Realty Income pays a 5.2% dividend yield in monthly installments and has a fantastic history of dividend increases and market-beating total returns throughout its 30-year history as a publicly traded company.

A value play with tons of potential

EPR Properties (NYSE: EPR) is another REIT, but this one is laser-focused on experiential real estate. It owns waterparks, ski resorts, eat-and-play businesses (TopGolf is one of the largest tenants), and much more. But its largest property type is also its biggest risk factor, and that is movie theaters.

It’s no secret that it’s been a rough few years for the movie theater business, and this resulted in the bankruptcy of one of EPR’s largest tenants, Regal Entertainment. However, this was resolved favorably for EPR, and while there’s still quite a bit of uncertainty in the movie industry, it’s important to realize that EPR’s theaters tend to be of high quality and are generally high-performing.

EPR sees a massive $100 billion growth opportunity in its target property types in the years to come, and in the meantime, offers a 7.2% dividend yield for investors willing to hold on as the movie theater situation evolves.

Tremendous assets and growth potential

Last but not least, Ryman Hospitality Properties (NYSE: RHP) has been one of the best-performing real estate stocks since the Fed started raising rates, and for good reason. Its properties have come roaring back from the pandemic and are performing better than ever.

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Ryman owns six large-scale hotels that are focused on group events, mostly under the Gaylord brand name. It also owns a portfolio of entertainment assets, including iconic performance venues such as Grand Ole Opry and Ryman Auditorium, as well as the Ole Red dining and entertainment chain. In the most recent quarter, Ryman’s revenue hit an all-time high, as did its average daily room rates. In fact, Ryman’s business is doing so well that the company is investing hundreds of millions of dollars to improve the cash-generating potential of its hotels and has a massive entertainment venue under construction in Nashville.

As of this writing, Ryman pays a 4.3% dividend yield, and still trades at a very attractive valuation from a long-term perspective of about 12 times forward funds from operations (FFO, or the real estate equivalent of earnings).

Can these really make you a millionaire?

To be perfectly clear, I don’t think any of these stocks will make you a millionaire quickly. But they can definitely help you get there over time. Consider the following:

• $10,000 invested in Realty Income’s 1994 listing on the New York Stock Exchange would be worth about $546,000 today, assuming the reinvestment of all dividends.

• EPR Properties went public in 1997 and has produced a S&P 500-beating 1,530% total return since then, even after the recent theater-fueled slump.

• Ryman has produced 715% total returns since it converted to a REIT in 2012.

So, while none of these stocks have doubled or tripled investors’ money in a short period of time, they have all delivered massive gains over the long run. If you invest in rock-solid REITs like these, hold your shares for a long time, and reinvest your dividends along the way, they definitely have millionaire-making potential.

Should you invest $1,000 in Realty Income right now?

Before you buy stock in Realty Income, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $731,449!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of August 26, 2024

Matt Frankel has positions in EPR Properties, Realty Income, and Ryman Hospitality Properties. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends EPR Properties and Ryman Hospitality Properties. The Motley Fool has a disclosure policy.

3 Real Estate Stocks That Could Make You a Millionaire was originally published by The Motley Fool