Mid-America Apartment Communities, Inc. (MAA)

Mid-America Apartment rents flats in the South — where people and companies are moving.

Betting on a region gaining population looks obvious and has a flip side: building there is easy, permits are granted, land is cheaper — so new supply appears quickly in response to demand, and a wave of completions temporarily depresses rents.

That is exactly what such a trust's cycle consists of: inflows lift demand, developers answer with a wave, rents stall, the wave passes, rents rise again. The portfolio is spread across many cities so that a local glut does not decide the result. Risks: the volume of new construction, coastal insurance costs and interest rates. The dividend has been raised for many consecutive years.