Top 5 real estate stocks to invest in come 2020

The end of the year is a time for investors to focus on diversification. Despite the major exchanges continuing to hit record highs, there are reasons for investors to be sceptical of the future. The real estate sector recently saw tough times but the presence of this investment vehicle generally adds stability to a portfolio. This is because volatility in property prices is far less compared to the extent experienced by stocks. Adding such funds to a widely diversified portfolio would increase returns while significantly reducing the associated risk.

Below, we are going to be looking at top five real estate stocks to invest in.

Retail Opportunity Investment Corp. (NASDAQ: ROTC)

Stock price: $18.22

Dividend:$0.1970 per share quarterly

Forward yield: 4.2%

Market capital: $2.32 B

Retail Opportunity Investments Corporation (NASDAQ:ROIC) is a fully integrated real estate company that is qualified as a REIT for U.S. federal income tax purposes. The company is focused on acquiring, owning leasing, repositioning and managing a diverse portfolio of necessity-based retail properties. Including primarily, well located community and neighborhood shopping centers that are anchored by national or regional supermarkets and drugstores. ROIC targets properties strategically situated in densely populated, middle and upper income markets in western regions of the United States. The Company presently owns and operates eighty eight shopping centers encompassing approximately 10,100,000 square feet. This growth experienced by ROIC in 2019, gives it a chance to be predicted as one of the top five real estate stocks to invest in by 2020.

Care trust REIT (NASDAQ: CTRE)

Stock price: $21.04

Dividend: $0.35/stock quarterly

Forward yield: 4.28%

Market cap.: $2.01 B

Care Trust acquires and leases senior housing and healthcare properties in the country. Care trust is led by senior management with over 5 years of collective experience, as small operators, and as one of the country's most successful, publicly-traded multistate operator.

With the announcement of its Q3 earnings on Nov 8 and the positive result, it is a sure top real estate stock to invest in by 2020.

American Tower (NYSE: AMT)

Stock price: $214.91

Dividend: $0.95/share

Forward yield: 3.8%

Market cap.: 95.2

Founded in 1995, American Tower Corporation, one of the largest global Real Estate Investment Trusts (REITs), is a leading independent owner, operator and developer of wireless and broadcast communications real estate. AMT's global portfolio includes more than 171,000 communications sites, including nearly 41,000 properties in the United States and more than 130,000 properties internationally. In addition to leasing space on wireless and broadcast towers, they provide customized solutions through their in-building systems, outdoor distributed antenna systems and other right-of-way options, managed rooftops and services that speed network deployment. Headquartered in Boston, Massachusetts, American Tower has offices across the United States and in Argentina, Brazil, Chile, Colombia, Costa Rica, France, Germany, Ghana, India, Kenya, Mexico, Nigeria, Paraguay, Peru, South Africa and Uganda.

With the recent positive news of AMT beating its estimated FFO and revenue, it is one of top real estate stock to invest in.

Dr Horton Inc. stock (NYSE: DHI)

Stock price: $55.30

Dividend: $0.17/share

Market cap.: 20.38 B

Home Marker, DHI  has been consistent with growth over the years. With the recent development plans in Sacramento's South Natomas area and more than $5 million in lot purchases there recently, as well as stock rallying on another strong quarter, we are predicting DHI to become a top real estate investment target.

Taylor Morrison Home Corp (NASDAQ: TMHC)

Stock price: $23.47

Dividend: $0.24/share

Taylor Morrison is a leading national home builder and developer recognized as America's must trust trusted. Following the giant stride of acquiring William Lyon homes to expand in Western US, the unveiling of 20 home design trends for 2020, as well as the convincing Q3 earnings, there are positive expectations for the coming year.