Dividend-Focused Investment Comparison: Equity Lifestyle Properties versus Sun Communities
Investing in a lesser-known market segment can lead to impressive returns, as seen with manufactured home communities. Two companies excelling in this area are Sun Communities (SUI) and Equity LifeStyle Properties (ELS). These real estate investment trusts (REITs) have consistently delivered dividends and growth, making them appealing options for dividend income seekers.
Championing the Underrated
Sun Communities, the industry leader, boasts a vast portfolio of 288 manufactured home communities, 179 RV parks, and 138 marinas across the U.S., Canada, and the UK. The company's size and diversified holdings ensure durable income due to the resilient nature of its niche properties.
Equity LifeStyle, meanwhile, owns over 450 properties across 36 U.S. states and one Canadian province, with inherently stable net operating income (NOI) strong enough to surpass the REIT average since 1998.
Dividend Dynamos
With the consistent income generated by their resilient properties, these REITs are able to provide higher-yielding dividends, more than doubling the S&P 500's dividend yield. Sun Communities offers a 3% yield, while Equity LifeStyle dishes out a 2.8% dividend.
Equity LifeStyle's dividend growth has been impressive, demonstrating a 7.9% raise in the past year. On the other hand, Sun Communities has also shown its capacity for growth with a 1.1% dividend boost in February. Despite their slight differences, both REITs have strong dividend payment histories, bolstering their appeal for investors.
Balance and Growth
Equity LifeStyle's balance sheet is notably stronger, boasting a lower 4.6x leverage ratio compared to Sun Communities' 6.0x. This financial flexibility allows for opportunities to expand the portfolio and drive dividend growth, further solidifying its appeal to investors.
Though Sun Communities has a higher dividend yield, Equity LifeStyle's stronger balance sheet and faster dividend growth make it a more compelling choice for long-term dividend income investors seeking both security and growth.
In conclusion, whether you prefer the allure of a slightly higher dividend yield or the promise of sustained dividend growth, the choice between these two REITs ultimately depends on your investment strategy and risk tolerance. With their resilient income and growth potential, either Sun Communities or Equity LifeStyle Properties can make for a strong long-term dividend income investment.
Investing in these niche manufactured home communities and RV park REITs, Sun Communities and Equity LifeStyle Properties, can provide a steady stream of money due to their consistent dividends and growth, making them attractive options for individuals interested in finance and dividend income.
These real estate investment trusts (REITs) have leveraged their resilient properties to offer competitive dividend yields, with Sun Communities providing a 3% yield and Equity LifeStyle offering a 2.8% dividend.
