American Capital Mortgage Investment Crp (MTGE), Plum Creek Timber Co. Inc. (PCL) Among Three REITs to Bolster Your Portfolio

American Campus Communities runs a variety of student housing properties all around the country. There’s a good chance that you’ve at least seen one of their properties if you’ve been around some of the nation’s colleges over the last decade.

Having seen some of the properties myself, I can confirm that they are among the best, and students like living in them. If you like owning them, you can hop aboard now. This company will pay you a 3% dividend yield for holding on, but you should be warned about the incredibly high P/E ratio.

That P/E ratio is among the highest out there for any type of REIT, and will likely throw many of you away from the path of this company. At 74.2 times trailing earnings, I really couldn’t blame you.

Investor takeaway

I would definitely consider buying American Capital Mortgage Investment Crp (NASDAQ:MTGE) and Plum Creek Timber Co. Inc. (NYSE:PCL). Both these REITs have their advantages over the rest of the market as American Capital comes with excellent management and Plum Creek Timber owns a lot of land, something that can’t ever be duplicated.

American Campus Communities will obviously be a choice for investors getting in the game over the long-term. It will likely take some time before you’ll be able to make ground on that outrageous P/E ratio, and I don’t think a massive sell off will be coming in the space anytime soon.

The article 3 REITs to Bolster Your Portfolio originally appeared on Fool.com and is written by Ash Anderson.

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