Investing

Why One Red-Hot Sector Is Almost Totally Immune to Tariffs and Trade

Welltower

This one pays a solid distribution and is a play on the aging U.S. population. Welltower Inc. (NYSE: WELL) is a fully integrated and self-administered REIT invested across the full spectrum of health care real estate

The company also offers property management and development services. As of last year, Welltower had ownership interests in nearly 1,400 facilities in high growth markets in the United States, the United Kingdom and Canada, across senior housing triple-net, senior housing operating, skilled nursing/post-acute and medical office buildings.

Shareholders receive a 4.35% distribution. The $78.56 consensus price target compares with the most recent close at $80.06.

Equity Residential

This apartment REIT company owns properties in high-growth U.S. cities. Equity Residential Inc. (NYSE: EQR) is an S&P 500 company focused on the acquisition, development and management of high-quality apartment properties in top U.S. growth markets.

As of March 31, 2019, it owns or has investments in 310 properties, consisting of 80,061 apartment units located primarily in Boston; New York; Washington, D.C.; Seattle; San Francisco; southern California; and Denver.

The company recently provided an update on its operations for the second quarter. Revenues are trending toward the high end of guidance and New York; Washington, D.C.; Boston and Seattle performed better than expected. Base rents trended slightly better than expected to date. Occupancy ran above 2019 forecasts.

The company pays investors a 3.01% distribution. The consensus price target is $74.85. Shares last traded at $75.48.

AvalonBay Communities

This is another top apartment REIT. AvalonBay Communities (NYSE: AVB) develops, acquires and manages high-quality apartment communities. As of March 31, 2019, it owned or held a direct or indirect ownership interest in 291 apartment communities, containing 85,313 apartment homes in 12 states and the District of Columbia, of which 19 communities were under construction and nine communities were under redevelopment.

The company announced this week that total rental revenue for established communities for the two months ended May 31, 2019, increased 3.4% over the prior-year period. This is 40 basis points above what AvalonBay’s expectation was for total rental revenue growth during this period when the company published its outlook for the full year.

Investors receive a 3% distribution. The consensus price target is $207.35, and shares closed at $202.67.

Five top companies, some of which have limited overseas exposure but do the great percentage of corporate business right here at home. Given the safety and dependable income, they all make sense for nervous investors. Note that they all have had a big run, so scale-buying when they pull back some makes sense.