Uncovering a Budget of Approximately $125? Discover Strategies to Initiate Passive Real Estate Income and Accumulate Wealth by 2025.
Diving into the world of real estate investing, two outstanding options to consider are Camden Property Trust and Sun Communities. Both are residential real estate investment trusts (REITs) that can provide you with a steady income stream and potential wealth growth.
Camden Property Trust
Known as CPT, Camden Property Trust specializes in owning and managing multifamily apartment communities across the Southern United States. With 172 properties and over 58,000 apartment homes, the company's portfolio spans 15 major metro markets. The rental income from these properties forms a large portion of the REIT's revenue stream, a good portion of which is paid out to shareholders in the form of dividends.
Currently, shares of Camden Property Trust are available for around $125 each. The REIT offers a quarterly dividend of $1.03 per share, resulting in an annualized dividend of $4.12 and a dividend yield of approximately 3.3%. Aside from the income, investors can also look forward to the appreciation of the property's value, as well as the potential for growth through new developments and acquisitions.
Camden has an impressive past performance, with an average annual share price increase of over 5.5% since its founding more than three decades ago. When combined with its dividend income, the REIT's total return averages 11.3% per year. With five additional communities in development, as well as continued demand for rental housing in major metro areas, Camden Property Trust is well-positioned for both rental income and capital growth.
Sun Communities
Sun Communities, represented by SUI, is another REIT focused on the residential sector. Unlike Camden, it specializes in niche properties such as manufactured home communities, RV parks, and marinas. Currently, Sun Communities owns and operates 659 properties across the United States, Canada, and the U.K.
Sun Communities' shares are also trading around $125 each. The company pays out a quarterly dividend of $0.94 per share, resulting in an annualized dividend of around $3.76 and a dividend yield of approximately 3%.
Manufactured home communities have proven to be a solid investment over the years, as the cost to move an existing home from one location to another can be quite high. This steady demand allows for the gradual increase of rents, even during economic downturns. Consequently, Sun Communities has delivered 20 consecutive years of positive net operating income (NOI) growth and has shown resilience to different challenges.
Sun Communities has also benefited from expanding its portfolio and venturing into other niche properties such as RV communities and marinas. These investments have contributed to the growth of shareholder value. Overall, Sun Communities' share price has increased at an annual rate of more than 6% since its inception, boosting the total return further.
Looking ahead, the demand for affordable housing options like manufactured homes remains strong, and outdoor activities continue to gain popularity, benefitting Sun Communities' RV communities and marinas. Moreover, the REIT maintains a solid financial position and can take advantage of investment opportunities as they arise.
Do you want to build wealth and collect some passive income? Investing in REITs like Camden Property Trust and Sun Communities can be an excellent choice. Both offer attractive dividend yields and robust performance histories, with the potential for future income and capital gains. They are perfect picks for anyone looking to start collecting passive income and grow their wealth with real estate in the coming year.
Following the discussion on real estate investment trusts (REITs) Camden Property Trust and Sun Communities, it's worth noting that investing in these companies can also involve managing your finances effectively. For instance, you might want to consider reinvesting your dividends to maximize your returns.
Furthermore, when thinking about investing in Camden Property Trust or Sun Communities, it's important to remember that while both offer steady income streams and potential wealth growth, they require an initial investment of money. This money can come from various sources, such as savings or other investments, which highlights the importance of having a well-diversified financial portfolio.
