5 passive income stocks to buy in August 2022

Inflation is still near 40-year highs, and many analysts expect the Fed to continue raising interest rates. Therefore, the stock market should remain under pressure. Additionally, ongoing geopolitical tensions are fueling investor concerns. Given the uncertainties surrounding the market, it might make sense to invest in fundamentally sound REITs Extra Space (EXR), City Office REIT (CIO), LTC Properties (LTC), Getty Realty (GTY) and Saul Centers (BFS) to ensure a steady stream of income. Read on….

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The stock market rallied after signs of slowing US inflation prompted bets that the Fed would now raise rates interest at a slower pace. However, according to Neel Kashkari, chairman of the Minneapolis Federal Reserve, the Fed is "far, far away from declaring victory" and needs to raise rates much higher - 3.9% by the end of the year and 4 .4% by the end of 2023.< /p>

Concerns about the economy sliding into recession due to continued Fed rate hikes and ongoing geopolitical tensions are expected to keep the stock market highly volatile.

Given the context, we think it might make sense to invest in REITs that tend to profit from an inflationary environment and pay out nice dividends. Here are five fundamentally sound REITs you can consider to generate passive income: Extra Space Storage Inc. (EXR), City Office REIT, Inc. (CIO), LTC Properties, Inc. (LTC), Getty Realty Corp. (GTY), and Saul Centers, Inc. (BFS).

Extra Space Storage Inc. (EXR)

Located in Salt Lake City, Utah, EXR, a self-administered, self-managed REIT, offers customers a wide selection of secure and conveniently located storage units nationwide, including storage for boats, RV storage and corporate storage.

EXR's $6 annual dividend yields 2.83% on its current share price. It paid its quarterly dividend of $1.50 on June 30, 2022. Its dividend payments have grown at a CAGR of 16.5% over the past three years and 12% over the past five years. The company has a record 11 consecutive years of dividend growth.

EXR's total revenue increased 25.4% year-over-year to $474.99 million in the fiscal quarter ended June 30, 2022. $1.73, up 38.4% over the previous year.

Street expects EXR's revenue for the fiscal quarter ending September 2022 to be $414.33 million, a 17.9% year-over-year increase other. Its FFO per share is expected to improve 15.3% year-over-year to $2.13. The company has exceeded consensus estimates for FFO per share in each of the past four quarters.

Over the past month, the stock has gained 26.9% to close the last trading session at $211.96.

EXR's fundamentals are reflected in its POWR ratings. POWR ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree.

EXR is rated B in Momentum, Growth, Sentiment and Stability. Within the REIT - Industry sector, it is ranked No. 2 out of 20 . Click here to see other POWR ratings for EXR value and quality.

City Office REIT, Inc. (CIO)

CIO invests in high-quality office properties located in cities with 18-hour reach and strong economic fundamentals, primarily in the southern and western United States.

On June 15, CIO announced the completion of the sale of the Lake Vista Pointe property in Dallas, Texas, for a gross price of $43.8 million. The disposal represents a gain of $22 million, bringing the company's total gain to $570 million from its ten disposals to date. This demonstrates the CIO's strong cash flow.

$0.80 per CIO...