Buy these two stocks with a solid setup in 2027 and 4% dividend yields, Mizuho says
The firm called out a pair of single-family residential REITs that it says are poised for strong performance in 2027.
TL;DR
- Mizuho upgraded American Homes 4 Rent and Invitation Homes to outperform from neutral.
- The firm anticipates a stronger fundamental, regulatory, and growth environment for single-family rentals by 2027.
- High mortgage rates and a widening rent-vs.-own gap are expected to benefit single-family rental REITs.
- The 21st Century ROAD to Housing Act presents an opportunity for these REITs to acquire smaller players.
- American Homes 4 Rent has a current dividend yield of 4.2% and strong occupancy.
- Invitation Homes offers a 4.5% dividend yield and also shows high occupancy rates.
- Both companies have been active in share buybacks.