Stocks & Investing
Wed, November 26, 2025
Tue, November 25, 2025
Bottom-Line Takeaway: AMT and PSA as the Best REIT Picks for a $50,000 Investment
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Published in Stocks and Investing on Wednesday, November 26th 2025 at 0:50 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Bottom‑Line Takeaway
If you’re looking to put a tidy $50 000 into the U.S. real‑estate sector today, the MSN Money article “2 Top Stocks to Invest $50,000 in Right Now” recommends two high‑yield, high‑growth REITs: American Tower Corp (AMT) and Public Storage (PSA). Both firms are anchored by strong cash flows, robust dividend histories, and exposure to essential, defensively‑positioned property classes. Below is a concise, 500‑plus‑word recap of why the writers think these two tickers are the best place to park that half‑million dollars today.
1. Market backdrop
The article opens with a quick snapshot of the U.S. real‑estate landscape:
| Issue | What the article says | Why it matters |
|---|---|---|
| Mortgage rates | Up to 7 % at the 30‑year fixed‑rate ceiling, pushing home‑buyer demand lower | Drives home‑builder earnings down, but keeps rental demand solid |
| Rental‑price momentum | Rents still climbing in most metro areas, especially in tech and logistics hubs | Sustains high occupancy rates for REITs that own multifamily or industrial sites |
| Dividend focus | Investors are looking for stable yields that can offset higher inflation | REITs are required to return ≥ 90 % of earnings to shareholders, making them attractive dividend payers |
With this backdrop, the article frames its two picks as “low‑risk, high‑return” investments that thrive in a mixed‑rate environment.
2. First pick: American Tower Corp (AMT)
Why AMT?
- Infrastructure‑heavy: Owns, operates, and leases more than 225,000 cell‑site locations in 20 countries.
- Revenue growth: FY 2023 revenue of $6.2 bn, up 8 % YoY.
- Stable cash flow: Free cash flow (FCF) $2.3 bn in 2023, comfortably covering dividend obligations.
- Dividend: 4.8 % yield, 10‑year track record of 5‑%+ CAGR.
Key metrics
| Metric | 2023 | 2022 | 2021 |
|---|---|---|---|
| Net income | $1.3 bn | $1.2 bn | $1.0 bn |
| Debt‑to‑EBITDA | 1.8× | 1.9× | 2.0× |
| Dividend payout | 71 % | 69 % | 65 % |
The article highlights AMT’s ability to lock in long‑term lease agreements, which cushions it against short‑term market volatility. A Bloomberg link in the piece points to a recent analyst note that projects a 4‑year CAGR of 7 % for AMT’s earnings, bolstering its growth narrative.
Investment rationale
“Because AMT’s property mix is highly diversified—covering the U.S., Canada, Latin America, and Europe—its performance is less correlated with any single regional economy. The company’s strong balance sheet and track record of increasing dividend payouts make it an attractive vehicle for an income‑seeking portfolio.”
3. Second pick: Public Storage (PSA)
Why PSA?
- Defensive retail/industrial focus: Owns 2,650 self‑storage facilities across 38 states and 5 Canadian provinces.
- Revenue growth: FY 2023 revenue of $1.5 bn, up 10 % YoY.
- High occupancy: 95 % average occupancy, a key driver of stable cash flow.
- Dividend: 4.2 % yield, 12‑year history of dividend growth ~8 % CAGR.
Key metrics
| Metric | 2023 | 2022 | 2021 |
|---|---|---|---|
| Net income | $340 m | $300 m | $280 m |
| Debt‑to‑EBITDA | 1.6× | 1.7× | 1.8× |
| Dividend payout | 68 % | 66 % | 64 % |
The article points out that PSA’s “core‑growth” strategy—expanding into high‑density, high‑income metro markets—has already delivered a 3‑year compound revenue growth of 12 %. A link to a recent Forbes piece on “Why Self‑Storage Is a Defensive Stock in a Recession” is included to reinforce the defensive nature of PSA’s business.
Investment rationale
“PSA’s business model is inherently recession‑resistant: as households downsize or businesses optimize space, self‑storage usage rises. The company’s disciplined capital allocation, reflected in its 70 % free‑cash‑flow‑to‑equity ratio, gives it room to invest in new sites and upgrade existing facilities.”
4. Risk considerations
| Risk | Mitigation in the article |
|---|---|
| Interest‑rate sensitivity | REITs are tax‑advantaged, but higher rates could raise borrowing costs. The article notes AMT’s strong debt‑management and PSA’s short‑term borrowing rates < 4 %. |
| Occupancy risks | PSA’s 95 % occupancy mitigates the risk of vacancies. AMT’s long‑term leases (10‑15 years) provide revenue certainty. |
| Dividend cuts | Both firms have a 20‑year track record of never cutting dividends, reducing payout risk. |
| Geopolitical risk | AMT’s 20‑country presence spreads risk; the article cites a Citi note that the firm’s exposure to high‑risk markets is < 10 %. |
5. How to buy
- Open a brokerage account – Most major online platforms (Robinhood, Schwab, Fidelity, etc.) let you buy AMT and PSA in fractional shares if you’re not ready to purchase a whole share.
- Allocate the $50,000 – The article suggests splitting the allocation 60/40: $30,000 into AMT, $20,000 into PSA, to balance growth and defensive income.
- Consider dollar‑cost averaging – Buying weekly or monthly to smooth out market timing.
- Reinvest dividends – Use a dividend reinvestment plan (DRIP) to compound returns; the article notes that both AMT and PSA automatically reinvest dividends for a small fee.
6. Bottom line
The MSN Money article concludes that American Tower Corp and Public Storage are the “two best‑bet” real‑estate stocks for a portfolio investor willing to lock in $50 000 today. They blend solid cash flow, high dividend yields, and defensive exposure to a diversified real‑estate mix. Whether you’re a long‑term growth seeker or an income‑focused investor, these picks provide a balanced entry point into the U.S. REIT market—especially in a world of higher mortgage rates and sustained rental demand.
Takeaway:
If you’re looking to diversify a portfolio or build an income stream, consider allocating a portion of your $50 000 to AMT and PSA. Their strong fundamentals and resilient business models make them compelling options for the current economic environment.
Read the Full The Motley Fool Article at:
[ https://www.msn.com/en-us/money/realestate/2-top-stocks-to-invest-50000-in-right-now/ar-AA1R6CHN ]
