I want my holdings to make me a passive income, so I am on the lookout for dividend stocks. One pick that can help me do that is PRS The REIT (LSE:PRSR).
Passive income seekers heaven
Investors often look at buy to let opportunities to access the property market. A real estate investment trust (REIT) is a company that owns and operates income-producing real estate. One of the main rules a REIT must follow is that 90% of its tax-exempt property income profit must be distributed to investors as dividends.
5 Stocks For Trying To Build Wealth After 50
Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.
But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.
Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…
We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.
Click here to claim your free copy now!
PRS is the UK’s first quoted REIT to focus on newly built family homes for the private rental market. It aims to enhance the rental experience for consumers and provide them with new, quality homes. As I write, PRS shares are trading for 106p, whereas a year ago shares were trading for 75p. This is a 41% return over a 12-month period.
Why I like PRS
I like PRS first because the current housing and house building market is booming. The demand for new houses is outstripping supply and housebuilders are working as hard as possible to build them. Buyers are on the lookout for new homes to buy and live in, but due to rising costs, most turn to renting. PRS can benefit from both of these favourable market conditions. It builds its own houses and then manages renting them to consumers.
I like the idea of building up a buy to let portfolio as an investment vehicle but this can be costly and time consuming. A REIT like PRS can help me make a passive income without thousands of pounds of outlay and time spent managing tenants and properties. In addition to this, buying a REIT means I avoid double taxation compared to a regular dividend stock. Other firms are liable for corporation tax and my …….
