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Real estate stocks currently make up only a small portion (around 2.1%) of the S&P/TSX Composite Index. However, that doesn’t mean they are not worth investing in. In fact, with growing interest rate cut hopes in the near term, the real estate sector could experience strong gains as lower interest rates tend to increase the affordability of financing for property purchases, which could take property values and rental yields higher. This is one of the key reasons why many real estate stocks look really attractive right now, especially for investors who want to diversify their portfolios and tap into steady monthly passive income through dividends.
Here are two top TSX real estate stocks that I think are worth buying in May 2024 based on their strong fundamentals, growth prospects, and impressive dividend yields.
Chartwell stock
Chartwell Retirement Residences (TSX:CSH.UN) is a Mississauga-based real estate trust