Easy Extra Money Idea of the Day:
Some readers of this blog will remember the housing crisis of 2008-2009 which many believe lead to the financial crisis. It has taken some time for the housing market to re-balance itself but with some people experiencing the loss of their home and being in foreclosure/underwater on their mortgage, the dream of buying a house and waiting (hoping) for it to appreciate in value isn’t for everyone.
Long term apartment living is becoming more popular and especially so with millennials who witnessed the housing crisis first hand through their parents. Hoping to play off of the apartment living trend, Mid-America Apartment Communities (MAA) is an investment I like. Unlike their competitors who tend to focus on USA East or West coast apartments, MAA focuses on communities in the South and Mid-West which may not bring in the same high rent prices, but they do tend to be less volatile. From a dividend standpoint, MAA currently has a healthy 3.4% dividend yield and have raised their dividend since 2011.
- MAA is involved in the acquisition, development, and property management of multifamily apartment communities.
- Founded in 1977 and based in Memphis, TN
- Dividend Payout Schedule: 1-4-7-10
- To create monthly dividend income, pair with an investment from Dividend Payout: 2-5-8-11 and Dividend Payout: 3-6-9-12
Note that MAA is a REIT (Real Estate Investment Trust) which means that, for tax purposes, its dividends are treated as ordinary income and taxed at a higher rate. So it may be better suited for an IRA (instead of a taxable account)
Check out our YouTube review of MAA!