Yahoo Finance Bill Gates Is Bullish on Farmland – Here's How You Can Gain Exposure to the Asset Right Now
Bill Gates is the largest private owner of farmland in the United States, with a portfolio of nearly 270,000 acres, according to the Associated Press.
When asked why he's been purchasing so much farmland in an "Ask Me Anything" session on Reddit, Gates responded, "I own less than 1/4000 of the farmland in the US. I have invested in these farms to make them more productive and create more jobs. There isn’t some grand scheme involved – in fact, all these decisions are made by a professional investment team."
If you think Gates is making a smart move by investing in farmland, you can do the same with these two real estate investment trusts (REIT) focused on farmland.
Farmland Partners
Farmland Partners (NYSE:FPI) is the largest farmland REIT in the United States by acreage. Its portfolio consists of nearly 300 farms totaling approximately 177,400 acres across 17 states. The company also owns land and buildings for four agriculture equipment dealerships leased to Ag Pro under the John Deere brand in Ohio.
Don't Miss:
New fund backed by Jeff Bezos offers a 7-9% target yield with monthly dividends. Here's how you can invest today.
Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's how you can collect passive rental income without being a landlord.
Farmland Partners currently pays a quarterly dividend of $0.06 per share, equating to an annualized dividend of $0.24 per share, which gives its stock a yield of about 2.2% at the time of this writing.
Farmland Partners may not have a very high yield, but it's worth noting that it paid a special dividend of $0.21 per share in January because of strong asset appreciation. With a strong first quarter already in the books, investors could see another special dividend next year.
Gladstone Land Corp.
Gladstone Land Corp. (NASDAQ:LAND) is a farmland REIT with a portfolio of 168 farms totaling nearly 112,000 acres across 15 states. It's primarily focused on farms that grow fresh produce annually, including most fruits and vegetables, as well as certain permanent crops, including blueberries and nuts, because fresh produce has historically outpaced inflation.
Trending:
Want to Create a Passive Income Stream? These High-Yield Real Estate Notes Might Be Your Holy Grail
Gladstone currently pays a quarterly dividend of $0.0466 per share, equating to an annualized dividend of $0.5592 per share, which gives its stock a yield of about 4.1% at the time of this writing.
In addition to being a high yielder, Gladstone is a dividend-growth star. In a press release announcing its most recent dividend increase in April, the company proudly noted that it has raised its dividend 34 times over the prior 37 quarters.
Read Next:
Investing in real estate just got a whole lot simpler. This Dara Khosrowshahi-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. This platform allows individuals to invest in commercial real estate with as little as $5,000.
Image Credit: Shutterstock
"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article Bill Gates Is Bullish on Farmland – Here's How You Can Gain Exposure to the Asset Right Now originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
