#1 - Sun Communities (NYSE:SUI)
Sun Communities (NYSE:SUI) owns and operates manufactured home communities that also includes recreational vehicle (RV) and marina resorts. One aspect of manufactured home communities is that many include a combination of homes that the resident owns and others that are available for rent. And historically, rent prices tend to increase for about a year after home prices crash.
That means that at the beginning of a housing downturn investing in companies with exposure to rental properties can be a way to diversify your portfolio. SUI stock is down 30% in 2022, but it’s been a consistent performer over the last five years rewarding investors with a 56% gain outside of the dividend. And the company is expected to grow revenue at around a 10% rate in the next five years.
And with a dividend yield right around 2.5% which is in line with the S&P 500 average. And with an annual payout of $3.52 per share, Sun Communities gives investors a good reason to own the stock even in a housing downturn.
About Sun Communities
Established in 1975, Sun Communities, Inc became a publicly owned corporation in December 1993. The Company is a fully integrated REIT listed on the New York Stock Exchange under the symbol: SUI. As of December 31, 2023, the Company owned, operated, or had an interest in a portfolio of 667 developed MH, RV and Marina properties comprising 179,310 developed sites and approximately 48,030 wet slips and dry storage spaces in the U.S., the UK and Canada.
- Current Price
- $118.29
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 5 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $141.17 (19.3% Upside)
