3 Stocks That Could Make You Richer in 2024

One of the difficulties of long-term investing is waiting. Investors may buy inexpensive stocks in the hope of obtaining superior long-term returns. This often involves a period of stagnation or even recession, and sometimes the return can take years.

In other cases, the return may come more quickly, as when an investor receives a report from theNvidia respond in singingSuper Micro These stocks have risen since the beginning of the year 2024, as seen in stocks such as the U.S. Treasury, the U.S. Treasury, and the U.S. Treasury. These stocks may or may not move higher in the near term, but the other three stocks have a good chance of moving higher by the end of the year.

Income from real estate

Realty Income (NYSE: O)Bubbles is a real estate investment trust (REIT) that owns approximately 15,500 single-tenant commercial properties. It leases space to many of the nation's most prominent retailers, often buying their properties and then leasing them back to the previous owners.

In addition, these agreements are net leases. This means that the lessee is responsible for maintenance, taxes and insurance.

Despite this good news, the company's stock seems to have suffered as rising interest rates increase the cost of borrowing, which in turn increases the cost of new deals.

Trying to do so, the company's monthly dividend, which pays out nearly $3.08 per share of曏 investors annually, provides a dividend yield of 5.7%. The company's dividend has increased at least once a year since 1994, so the dividend growth is likely to continue.

In addition, Realty Income will also see some relief on the interest rate side of the equation. After significant rate hikes over the past few years, the Fed thinks it will pass three rate cuts this year. This should lower Realty Income's borrowing costs, attracting more investors to the stock.

Finally, its price-to-earnings ratio of 43 is at the lower end of its historical range, considering that it has exceeded the 50 earnings multiple for most of the past five years. With this attractive entry point, investors should look at Realty Income as a growth-oriented income stock that should deliver higher returns in 2024 and beyond.

Innovative Industrial Real Estate

InnovationIndustryReal Estate(NYSE: IIPR)（Another rebounding REIT is IIP, which leases land and facilities to marijuana growers. By the end of 2023, the company will have 108 properties in 19 states with 8.9 million square feet of rentable space.

Like Realty Income, the company buys a property and leases it back to the previous owner. Since marijuana companies are prohibited from using the banking system, this provides them with a ready source of cash and a source of income for IIP.

The IIP has also shown that it can cope with adversity. The last downturn in the marijuana industry led to an increase in non-paying tenants. But the IIP was able to respond by renegotiating some lease terms, finding new tenants, or selling the property if no alternative solution could be found.

Late last year, the company confirmed this strength by announcing its first dividend increase in five quarters. The company's annual dividend is $7.28 per share and yields 7%.

In addition, IIP's stock price has steadily risen since hitting a low in April of last year, and 18%'s P/E ratio is near an all-time low. With marijuana sales improving and interest rates falling, a bullish trend seems to be in place for IIP to move higher now and in the future.

IBM

Another strong income stock isIBM (NYSE: IBM)The company's technology business has struggled to grow in the face of increasing competition. The company and its stock price have been stagnant for years as its technology business has struggled to grow in the face of increasing competition.

The paradigm changed, however, when IBM acquired Red Hat in 2019. The architect of the acquisition, Arvind Krishna, soon became chief executive officer. He went on to acquire dozens of cloud-based businesses and spun off the Torgun Infrastructure division intoKyndrylThe

Now, IBM is the sixth largest cloud infrastructure provider in the world. Although it does not have the largest share of the market, the cloud computing industry is projected to grow at a compound annual growth rate of 14% by 2030, according to Grand View Research. in addition, the company's generative AI platform, watsonx, provides customers with AI micro-enabled application support, making it possible for its cloud business to grow.

Additionally, IBM pays an annual dividend of $6.64 per share, making it one of the highest yielding cloud computing stocks with a dividend yield of 3.5%. if it chooses to raise its dividend in April as it has done in previous years, it will be the 29th consecutive year that it has increased its dividend.

More and more investors are taking notice of IBM's value proposition. Over the past 12 months, the company's stock price has risen nearly 50% to an all-time high. While Koon's price-to-earnings ratio of 24 is high by IBM's standards, it's still high compared to other cloud computing and artificial intelligence stocks, increasing the likelihood that the stock will reach new highs in 2024 and beyond.

Should you invest $1,000 in Realty Income now?

Consider this before buying shares of Realty Income:

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Will Healy owns shares of Innovative Industrial Properties.The Motley Fool owns and recommends Innovative Industrial Properties, Nvidia and Realty Income.The Motley Fool recommends International Business Machines.The Motley Fool has a The Motley Fool has a disclosure policy.

3 Stocks That Could Make You Richer by 2024 was originally published by The Motley Fool.