With the marketplace going into a seasonally weak duration, CNBC’s Jim Cramer stated Friday that realty financial investment trusts are a winner.
“You need a list of safety stocks that hold up as the market goes down that you can buy slowly,” the “Mad Money” host stated.
Real estate financial investment trusts, or REITs, are generally considered protective stocks since they tend to be steady no matter how the general market carries out. REITs have actually succeeded in 2021 as financiers have actually chosen them up in the middle of inflation issues, however Cramer believes the properties have a lot more space to run.
“I know they’re not interesting. The last thing we want right now is interesting,” Cramer stated. “If your eyes glaze over here, I want you to get some darn Visine because these are the kinds of stocks you could buy into the weakness.”
The host recognized 10 REITs he would advise financiers purchase if they’re trying to find a constant flight.
1. American Tower
American Tower is “the most global play on cell tower real estate” and “the stock’s been a fabulous long-term performer,” Cramer stated.
2. Crown Castle
Cramer stated financiers might select either American Tower or Crown Castle.
“After years of spending heavily to build out its network in more densely populated areas, Crown Castle has cut back on its capital spending dramatically,” the host stated.
3. Simon Property Group
Simon Property Group “owns the best malls in America,” Cramer stated. “Sooner or later I think the stock will make its next move higher.”
4. Tanger Factory Outlet
Tanger Factory Outlet runs high end outlet centers.
“Everyone in good or bad times wants or needs a bargain,” the host stated.
Prologis rents satisfaction centers to business like Amazon, Home Depot, FedEx, UPS and XPO Logistics, Cramer highlighted.
“This is one of those REITs that tends to give you a great total return because its stock just won’t quit,” he stated.
Equinix is the very best information center REIT, according to the “Mad Money” host.
“This thing’s a buy into any meaningful pullback,” Cramer stated of Equinix.
Ventas is a healthcare REIT that had a hard time in 2020 in the depths of the Covid crisis, however is returning this year, according to Cramer,
” I would not amaze me if [Ventas] raised the payment,” Cramer stated.
8. Innovative Industrial Properties
Innovative Industrial Properties deals with the medical cannabis market.
“They’ve been able to raise the payout for six consecutive quarters. Imagine how big that dividend can get if we ever legalize weed around the country,” the host stated.
9. Iron Mountain
Iron Mountain utilized to concentrate on physical record storage, today deals with digital record storage.
Cramer stated Iron Mountain has a “monster” yield. “I don’t know what more you can ask,” he stated.
10 Starwood Property Trust
Starwood Property Trust owns homes, office complex and other industrial homes, Cramer highlighted.
The host likes Starwood Property’s dividend and called the payment “rock solid.”