Netflix (NASDAQ: NFLX) has changed the media landscape, not once but twice. First it altered the way consumers rented DVDs and then it basically helped to create the streaming business. Both times it used a subscription model. And that model is what makes this company so resilient during economic downturns. It could be the perfect recession stock, but does that make it worth buying today?

What does Netflix do?

Netflix basically provides the software platform through which consumers can stream media. It charges monthly fees to consumers for the use of the platform. The subscription revenue it generates is used to pay for the content that Netflix offers on its service. In the early days, the company was busy building its software offering and spent heavily on content to attract consumers. But it has now gained enough scale that it is a sustainably profitable business.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

The subscriptions are annuity-like income streams. The key here is that a monthly subscription to Netflix is fairly low cost relative to what it would cost to go out to see a movie in a theater. And that's true for just for a single person, the benefit gets even greater for couples and greater still for couples with children. And since Netflix can be used on multiple types of devices, the service can, essentially, travel with a customer. There are a lot of positives here and very few negatives.

Which is why recessions aren't that big a deal for Netflix's business. While consumers may pull back on going to the movies, or other out-of-home entertainment, they probably aren't going to cut off Netflix unless they have no other choice.

The company sailed through the brief recession during the coronavirus pandemic period. But the bigger test was the Great Recession, where revenue didn't skip a beat despite the length and depth of the economic downturn. If history is any guide, the next recession shouldn't be too much of a headwind for the company, either.

Is Netflix worth buying now that economic uncertainty is high?

The key words above are "too much of a headwind." That's because Netflix was still in an early stage of growth during the Great Recession. It has reached a far more mature state today, so there's a chance that a recession will have a bigger impact on the top line. Given the nature of its media business, however, it seems highly unlikely that Netflix's sales and earnings will suddenly plunge.

This dynamic was highlighted in the company's first-quarter results. The company's revenue was ahead of its guidance, which is a very good sign. But management refrained from updating its full-year guidance. That suggests that the company is worried that the strong first quarter will be offset by weaker quarters later in the year.

That's hardly the end of the world, however, and is probably a prudent decision given the economic uncertainty. Netflix is still likely to be a strong performer even if there is a recession. The problem isn't the company's business, it is the stock's valuation. The stock's price-to-sales, price-to-earnings, and price-to-book value ratios are all above their five-year averages. This suggests the stock is expensive, noting that the shares are trading near their all-time highs.

To paraphrase famed value investor Benjamin Graham, even a good stock can be a bad investment if you pay too much for it. And it looks like investors are paying a high price for the perceived safety of Netflix's streaming business.

Netflix's business is resilient, but it stock may not be

If you are looking for an investment that will survive a recession in relative stride, Netflix's business seems highly likely to do just that. However, it is unclear what will happen to the stock, which appears to be pricing in a lot of good news. And given that management is taking a cautious stance with its full-year 2025 guidance, it probably makes sense for investors to take a cautious stance with the company's richly valued stock.

Should you invest $1,000 in Netflix right now?

Before you buy stock in Netflix, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $652,319!*

Now, it’s worth noting Stock Advisor’s total average return is 859% — a market-crushing outperformance compared to 158% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool has a disclosure policy.

When most investors think about buying "the market," they probably have the S&P 500 index (SNPINDEX: ^GSPC) in mind. But that's not the market -- it's just 500 or so hand-selected large and economically representative companies. If you want to own the market, you'll have to consider an exchange-traded fund (ETF) like the Vanguard Total Stock Market ETF (NYSEMKT: VTI) or the SPDR Portfolio S&P 1500 ETF (NYSEMKT: SPTM). They are not interchangeable, and in the end, one may be even better than the S&P 500 index.

The best way to buy "the market"

It would be virtually impossible for most investors to go out and buy 500 stocks, let alone 1,500 or 3,598 (more on this strangely precise number in a second). So the only real option for buying the market is to buy a pooled investment vehicle like a mutual fund or an ETF. Given the many benefits of exchange-traded funds, including ultra-low costs and all-day trading, ETFs are likely to be the go-to option.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

But when you are looking to buy "the market," you have to actually decide what that means. The S&P 500 index is a good starting point, but it is a list of roughly 500 companies that have been selected by a committee to be representative of the U.S. economy. The stocks in this index, which can be bought via the Vanguard S&P 500 ETF (NYSEMKT: VOO), make up around 80% of the market cap of all U.S. stocks. That's a lot of the market, but it isn't all of the market.

The rest of the market is largely made up of small and medium-sized companies. However, there will also be large companies that didn't make it past the committee process for some reason, which often includes financial troubles of some sort. But all of these companies add diversification for investors who truly want to own "the market." This is where the Vanguard Total Stock Market ETF and the SPDR Portfolio S&P 1500 ETF come in.

Extending the theme and just buying it all

The SPDR Portfolio S&P 1500 ETF is basically a cousin to the S&P 500 index. It owns the S&P 500, plus the S&P MidCap 400 Index and the S&P SmallCap 600 Index. Add it all up, and you get roughly 1,500 stocks that account for around 90% of the market cap of all U.S. stocks. All three of these indexes follow the same basic committee approach, though the S&P 500 gets the most scrutiny.

Still, that's not all of the market. The Vanguard Total Stock Market ETF gets you much closer, with 3,598 holdings. That said, there's no screening process here other than the stock being traded on a U.S. exchange. Like the S&P options, the Vanguard Total Stock Market ETF is market cap weighted, so the largest stocks have the most effect on the ETF's performance. However, adding in those extra 2,000 or stocks has made a big difference on the performance front.

SPTM Total Return Price data by YCharts.

As the total return chart above highlights, the Vanguard Total Stock Market ETF has outperformed both the S&P 500 index and the S&P 1500 index over the longer term. In other words, when you buy the market, all of those extra stocks -- around 20% of the overall market cap of the U.S. market -- appear to add value. Notably, cherry-picking stocks with a committee doesn't appear to help all that much.

If you want "the market," think bigger

If you say you own the market and you only own the S&P 500 index, you don't actually own the market. If history is any guide, owning as much of the market as possible appears to have a performance benefit. That's why index investors should probably take a closer look at the Vanguard Total Stock Market ETF. You may decide to stick with the S&P 500 and its committee approach, but you should at least look at your other, and possibly more attractive, options.

Should you invest $1,000 in Vanguard Total Stock Market ETF right now?

Before you buy stock in Vanguard Total Stock Market ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Total Stock Market ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $652,319!*

Now, it’s worth noting Stock Advisor’s total average return is 859% — a market-crushing outperformance compared to 158% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF and Vanguard Total Stock Market ETF. The Motley Fool has a disclosure policy.

Few investors enjoy market uncertainty, so the current state of affairs on Wall Street is probably a little unsettling for you. Buying dividend stocks can help calm your nerves because you can focus on collecting dividend checks instead of price volatility. Here are three brilliant dividend stocks that will serve you well now and are well worth holding for the long term.

1. The Monthly Dividend Company to the rescue

If you are watching the markets and feeling a little seasick, you might want to look at buying Realty Income (NYSE: O). The company pays monthly dividends, so it provides investors with a steady stream of income. The dividend, notably, has been increased annually for 30 consecutive years and is backed by an investment-grade-rated balance sheet. The real estate investment trust (REIT) is so focused on dividends that it actually trademarked the nickname, "The Monthly Dividend Company."

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Realty Income is the largest net lease REIT. This means that tenants pay for most property-level operating costs. It is a fairly low-risk approach in the sector when spread across a large portfolio.

Realty Income owns over 15,600 assets across the United States and Europe. And while retail properties make up around 75% of rents, these assets tend to be easy to buy, sell, and release if needed. The other 25% of rents, from things like industrial and gaming properties, provide diversification to the mix.

Historically well run and reliable, this REIT's lofty 5.5% yield should be on your radar screen given the uncertainty on Wall Street today.

2. Prologis is exposed, but you should take the long view

Next up is Prologis (NYSE: PLD), which is the largest REIT in the warehouse niche. It has a global footprint, owning assets in most of the world's major transportation hubs. That sounds like it would be a major problem in the middle of tariff issues, which is one of the reasons why the stock is down around 20% from its 52-week highs. This drop, however, has pushed the dividend yield up to an attractive 3.9%. That is near the highest level in a decade.

Prologis has increased its dividend annually for 12 years. And while it could be hurt by the tariff side of the geopolitical turmoil, international trade isn't going to stop. It is far more likely that trade lines shift and that well-located warehouses remain in high demand. In other words, the uncertainty today is an opportunity for long-term investors to buy the industry leader in a still important REIT segment.

3. AvalonBay provides a life necessity

AvalonBay (NYSE: AVB) is the largest apartment REIT by market capitalization. Its dividend yield today is around 3.4%. That's the lowest on this list, but apartment REITs tend to have modest yields. That yield is kind of middle of the road for AvalonBay, which is often afforded a premium over its peers. The dividend hasn't been increased every year but has trended steadily higher for decades.

There are two big reasons to like AvalonBay. First, even in difficult periods people need a place to live. Thus, the REIT provides a necessity. Second, AvalonBay has a long history of deftly managing its portfolio through good and bad markets. That includes shifting between buying, selling, and building assets depending on which will provide the highest returns.

And management has also shifted its geographic positioning along with demand trends, with the current effort being building new apartments in the Sun Belt region. If you favor industry leaders, AvalonBay is the apartment giant you'll want in your portfolio now and, likely, for years to come.

Go with the biggest and best if you are looking for dividend stocks

When times get tough, it is usually a good choice to focus on industry leaders. That said, the REIT sector offers a large number of large, industry-leading companies because of the various unique property niches in the sector. Given the high yields REITs offer, that makes this sector a brilliant area to look at for opportunities. And industry leaders Realty Income, Prologis, and AvalonBay are all great starting points.

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

Before you buy stock in Realty Income, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $652,319!*

Now, it’s worth noting Stock Advisor’s total average return is 859% — a market-crushing outperformance compared to 158% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Reuben Gregg Brewer has positions in Realty Income. The Motley Fool has positions in and recommends Prologis and Realty Income. The Motley Fool recommends AvalonBay Communities and recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy.

Warren Buffett's best advice for the average investor is to just buy "the market." He has singled out the S&P 500 index as a good choice for this approach, and an S&P 500 ETF wouldn't be a bad choice, but it also isn't "the market." A more comprehensive option would be the SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSEMKT: SPTM). Here's why.

What does the S&P 500 index do?

The S&P 500 index is fairly well structured. As its name implies, it owns around 500 stocks (although corporate events can change the number over the short term). Those stocks are selected by a committee so that they are broadly representative of the U.S. economy. The largest and most important companies in an industry tend to be the ones that get added to the S&P 500 index. The index constituents are weighted by market capitalization, so the largest companies in the index have the most impact on its performance.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

Image source: Getty Images.

There are negative aspects about the structure of the S&P 500 index, too. For example, market cap weighting often leads to the index being heavily influenced by hot sectors. When sentiment turns negative that can lead to swift drawdowns. That's been on display recently with the market sell-off. However, the index weightings rebalance over time and new sectors rise to the top. All in, the S&P 500 index is a solid suggestion, which is why Warren Buffett guides investors toward this option.

That said, the S&P 500 index leaves out a lot of stocks because of its focus on large companies. Specifically, mid-cap and small-cap stocks aren't represented and there are a lot more of those companies than large caps.

SPTM data by YCharts

Get all the caps with the S&P 1500 Composite

There are a couple of reasons you might want to add mid-cap and small-cap stocks to the mix. For starters, more stocks means more diversification. You'll also get exposure to companies that have potentially larger growth opportunities given their relatively small sizes. If you like the concept of the S&P 500 index, but want to have broader exposure to "the market," you should look at the SPDR Portfolio S&P 1500 Composite Stock Market ETF.

This ETF is actually three indexes in one. The portfolio includes all of the S&P 500 index stocks along with the stocks included in the S&P Midcap 400 index and the S&P Small Cap 600 index. That truly covers the broadest possible spectrum of the market, with a very modest expense ratio of just 0.03%.

SPTM Total Return Price data by YCharts

What's most notable, however, is that the S&P Midcap 400 index and the S&P Small Cap 600 index are constructed in a similar manner to the S&P 500 index. Specifically, a committee oversees the companies that get added to the respective lists. If you like the idea of a little human intervention to weed out obviously troubled businesses, the SPDR Portfolio S&P 1500 Composite Stock Market ETF has you covered.

And since the index is market cap weighted, the stocks in the S&P 500 will still have the biggest impact on overall performance. All in, you increase diversification without losing much on the performance side of the equation.

If you want the biggest slice of "the market"

Owning the SPDR Portfolio S&P 1500 Composite Stock Market ETF has been a far better option than simply buying small-cap or mid-cap indexes. Yes, you could do better with just the S&P 500 index, but you give up very little performance with the larger S&P 1500 Composite and materially increase diversification.

All in, if you want to own "the market" as Warren Buffett has suggested, the SPDR Portfolio S&P 1500 Composite Stock Market ETF is one of the broadest options you have at your disposal. Notably, it comes with a healthy dose of human oversight for those who aren't comfortable leaving investing decisions to computers or blind fate.

Should you invest $1,000 in SPDR Series Trust - SPDR Portfolio S&P 1500 Composite Stock Market ETF right now?

Before you buy stock in SPDR Series Trust - SPDR Portfolio S&P 1500 Composite Stock Market ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SPDR Series Trust - SPDR Portfolio S&P 1500 Composite Stock Market ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Dollar Tree (NASDAQ: DLTR) bought competitor Family Dollar in 2015. Now, it's selling the chain to a pair of private equity firms at a steep loss. Weirdly, the sale could result in competitor Dollar General (NYSE: DG), still a standalone business, being the big winner from the transaction.

Dollar Tree's expensive mistake

One of the ways that a company can destroy shareholder value is by acquiring other businesses that turn out to be worth considerably less than their purchase prices. Some Wall Street insiders cynically call this process "di-worse-ification." Sometimes, this questionable strategy is driven by a CEO who is hell-bent on building an empire, no matter the cost. Other times, companies are simply trying to find new avenues for growth, and their hopeful efforts just don't pan out as well as they expected.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

Image source: Getty Images.

When Dollar Tree bought peer Family Dollar for roughly $9 billion in 2015, management's idea was that it could find a way to synergistically operate two discount chains with different approaches: Dollar Tree, with its core concept of selling everything in the store for $1 or less, and Family Dollar, with its approach of basically being a low-cost local convenience store.

But last month, Dollar Tree agreed to sell the Family Dollar retail concept to Brigade Capital Management and Macellum Capital Management for just a touch over $1 billion. That fire-sale price suggests that Dollar Tree made a material mistake with its purchase.

Notably, over the decade that Dollar Tree owned Family Dollar, the core Dollar Tree concept expanded to include a wider range of prices and an increasing array of products, like frozen foods. Though their business models are not quite the same, Dollar Tree did begin to look more like Family Dollar. Meanwhile, the Family Dollar brand ended up being a distraction that simply wasn't performing as well as management had hoped it would. It was probably the right idea for Dollar Tree to salvage as much money as it could by selling it.

Dollar General could end up with less competition

Family Dollar and Dollar General are fairly similar retail concepts: Both are attempting to fill the local convenience store niche, like an old five-and-dime, particularly in smaller towns that aren't directly served by big-box stores.

That said, the next steps for Family Dollar are probably going to be dramatic. Managers of public companies have to justify every decision to investors, who can be more focused on near-term impacts to the business and its stock price. Once it goes private, it's possible Family Dollar's new owners will be able to make quicker and larger moves to get the business back into fighting shape. That effort will likely include speeding up the pace of store closures.

Dollar General is also closing some locations to fine-tune its footprint. However, it is opening more stores than it is closing. In 2025, it expects to increase its store count by 2%. That's modest, for sure, but it's still growth. The net result of the Family Dollar sale, meanwhile, could be that Dollar General will face less competition in some markets as Family Dollar stores get shuttered. Those store closures could also open up expansion opportunities in markets that Dollar General previously hadn't served.

Dollar General could have a new tailwind

To be fair, Dollar General isn't exactly hitting it out of the park today. Revenue rose 4.5% in 2024, but earnings fell materially thanks to the company's own strategic review. The stock has fallen dramatically, as well. However, the company's repositioning effort could actually have just gotten a little easier to achieve thanks to Dollar Tree's sale of its competitor concept, Family Dollar.

If you have been looking at Dollar General with its historically elevated 2.5% dividend yield and thinking there's a value play here, you may now have even more reason to like the stock than you did before.

Should you invest $1,000 in Dollar General right now?

Before you buy stock in Dollar General, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dollar General wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

When the market starts to tumble, more aggressive investors often start looking for bargains in the list of previous top performers. For example, American Express has fallen nearly 30% from its early-year highs. But its yield is only around 1.4% even after that stiff drop. At the other extreme, investors sometimes reach for yield with a company like AGNC Investment, which is down nearly 20% from its peak and yields a huge 16%. But AGNC's dividend history includes repeated dividend cuts.

It would be better for income investors to stick with their core approach. Buying popular stocks that have sold off, but not enough to give them an attractive yield (like American Express), or ultra-high-yield stocks with unreliable dividend histories (like AGNC) could be a setup for disappointment. It is far better to stick with reliable high-yield stocks that are likely to keep rewarding investors even in a market downturn or recession -- like this trio, with yields up to 6%.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

Image source: Getty Images.

1. UDR's core business is a basic necessity

UDR (NYSE: UDR) is a real estate investment trust (REIT), just like AGNC Investment. Only AGNC Investment is a mortgage REIT, a fairly complex type of REIT, while UDR is a property-owning REIT that focuses on apartments. UDR's dividend yield is an attractive 4.2% and the dividend has been increased for 16 consecutive years. That's in stark contrast to AGNC's dividend, which has been in a downtrend over that entire span.

What's interesting about UDR's business is that housing is a necessity. Bear markets and recessions don't change the need for having a roof over one's head. On top of that, this apartment landlord has one of the most diversified portfolios in the apartment REIT sector, with operations in coastal markets and in the sunbelt, in urban and suburban locations, and with both A and B quality assets. With a downtrend in construction of new apartments in UDR's markets expected to last until late 2026, this high-yield landlord appears well positioned to weather the current market and economic turbulence.

2. Toronto-Dominion Bank is out of favor, but still financially strong

Next up is Toronto-Dominion Bank (NYSE: TD), which is usually just called TD Bank. The bank was in its own personal bear market before the S&P 500 started to waver, in stark contrast to fellow financial giant American Express, which was trading near its all-time highs. That's worth noting because American Express has fallen nearly 30% from its 2025 highs while TD Bank is only down around 10%. That difference is largely because so much bad news is already priced into TD Bank's stock.

The bad news is that TD Bank's U.S. operations were used to launder money. It had to pay a large fine, is upgrading its internal controls, and is living under an asset cap in the U.S. market. The asset cap basically limits TD Bank's ability to grow its U.S. operations, which were expected to be the bank's growth engine. This is a black eye for TD Bank, but it isn't a knockout punch. In fact, the Canadian bank increased its dividend 3% after it announced the resolution with U.S. regulators. And once the asset cap is lifted, which could take a few years, U.S. growth will likely resume.

Meanwhile, TD Bank's Canadian operations are unaffected and the bank remains one of the largest and best-positioned financial institutions in that country. Given the downturn in the company's shares that has already happened, this bank giant is a low-risk turnaround that most income investors will probably find appealing. Note, too, that TD Bank didn't cut its dividend during the Great Recession, as did many of its U.S. bank peers, suggesting it's a resilient business even during the worst of times. Its yield is 5.1%.

3. W.P. Carey is a nuanced selection

Net lease REIT W.P. Carey (NYSE: WPC) cut its dividend in 2024 after deciding to exit the office property sector. Investors didn't like that move even though it has made this globally diversified REIT a better company. Notably, the dividend went right back to its quarterly increase cadence following the cut. That's a sign that W.P. Carey is operating from a position of strength and that the office exit was a business reset, not a sign that the REIT was struggling. And the cut clearly wasn't the start of a trend, like the long downturn in AGNC's dividend. W.P. Carey's dividend yield is a lofty 6% or so.

What's interesting here is that Wall Street has been in a show-me state of mind with W.P. Carey since the cut. And now, as 2025 has moved along, the mood among investors has become broadly negative. And yet the cash from the office exit allowed W.P. Carey to invest in new assets, a large portion of which were bought in late 2024. The financial benefits from those assets are going to start showing up this year. Since most investors aren't likely to be looking for W.P. Carey's return to growth in a bear market, the high-yield REIT remains an attractive bargain.

Don't change your approach in a downturn

Market sell-offs create powerful emotions that investors have to control or they risk making less-than-ideal investment decisions. This is the time to stick to your core investment approach, which is likely to mean buying attractive companies with attractive yields, not reaching for yield and potentially jumping in to buy a falling knife. UDR, TD Bank, and W.P. Carey all have strong stories and strong businesses... and the types of dividends and yields that should help you sleep well at night when Wall Street has become a little messy.

Should you invest $1,000 in UDR right now?

Before you buy stock in UDR, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and UDR wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

American Express is an advertising partner of Motley Fool Money. Reuben Gregg Brewer has positions in Toronto-Dominion Bank and W.P. Carey. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.