In this article, we discuss 10 best and reliable high dividend REITs to buy now. You can skip our detailed analysis of the REIT sector and its performance, and go directly to read 5 Best and Reliable High Dividend REITs to Buy Now.
Real estate investment trusts, or REITs, are a great way for investors to get exposure to the real estate market. The sector was among the top performing industries in 2021, as FTSE NAREIT Equity REIT Index gained 43.2% in 2021, compared with a 26% return of the broader market, as reported by Nareit. This marked the sector’s second-strongest year since the inception of the index in 1971.
In the current economic landscape, investors are seeking different passive income strategies to stay afloat. Dividend stocks like The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and The Procter & Gamble Company (NYSE:PG) are popular in this regard. Additionally, analysts are recommending REITs as they have stood the test of inflationary periods in the past. They are required to pay 90% of their taxable income to shareholders through dividends. According to a report by Morgan Stanley, the sector has generated positive returns in 84% of rising inflation periods from 2001 to 2021. REITs show a low correlation with other asset classes, reducing the overall risks of the portfolio and increasing returns for shareholders.
Marco Rimassa, president of CFE Financial, said in his CNBC interview that REITs perform well in times of inflation as they can increase their rents during this time and pay a share of that to investors.
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Our Methodology
The REIT dividend stocks mentioned below are reliable because of their strong fundamentals and solid financial health. The yields of these stocks are above 4%, as recorded on August 23.
10. Realty Income Corporation (NYSE:O)
Dividend Yield as of August 23: 4.1%
Realty Income Corporation (NYSE:O) is a real estate investment trust company that pays monthly dividends to shareholders. In the past year, the stock delivered a 3.11% return, while it gained 8.86% in the last six months, as of the close of August 22.
Realty Income Corporation (NYSE:O) reported strong Q2 results, posting revenue of $810.4 million, which showed 74.9% year-over-year growth. The company’s cash position remained strong as it had a cash balance of $172.8 million, with a free cash flow of $743 million. Realty Income Corporation (NYSE:O) also holds strong dividend history, paying dividends consistently for the past 99 quarters. The company has been raising its dividends since 1994. It pays a monthly dividend of $0.2475 per share, with a yield of 4.1%, as of August 23.
In June, Credit Suisse initiated its coverage of Realty Income Corporation (NYSE:O) with an Outperform rating and a $75 price target, calling the stock one of its Top Picks in the REIT sector. In addition to REIT dividend stocks, analysts are also positive about The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and The Procter & Gamble Company (NYSE:PG) due to their consistent dividend growth.
As of the close of Q2 2022, 19 hedge funds in Insider Monkey’s database owned stakes in Realty Income Corporation (NYSE:O), down from 22 a quarter earlier. These stakes are collectively valued at over $200.7 million.
9. Essential Properties Realty Trust, Inc. (NYSE:EPRT)
Dividend Yield as of August 23: 4.6%
Essential Properties Realty Trust, Inc. (NYSE:EPRT) manages single-tenant properties leased to middle-market companies. On June 6, the company announced a 4% hike in its quarterly dividend to $0.27 per share, marking the company’s third consecutive year of dividend growth. As of August 23, the stock’s dividend yield stood at 4.6%.
In Q2 2022, Essential Properties Realty Trust, Inc. (NYSE:EPRT) posted revenue of $71.4 million, up 25.2% from the same period last year. The company ended the quarter with $26.2 million available in cash and cash equivalents and had $408.2 million in total assets. In addition to this, it closed investments worth $175.7 million during the quarter.
Millennium Management owned the largest stake in Essential Properties Realty Trust, Inc. (NYSE:EPRT) in Q2 2022, worth over $42.2 million. Overall, 17 hedge funds tracked by Insider Monkey owned investments in the company in Q2, valued at roughly $100 million.
8. National Retail Properties, Inc. (NYSE:NNN)
Dividend Yield as of August 23: 4.76%
National Retail Properties, Inc. (NYSE:NNN) is a Florida-based real estate investment trust company, investing in high-quality properties. The company reported earnings beat in Q2 2022, posting an FFO of $0.79 which surpassed estimates by $0.02. The company’s revenue for the quarter stood at $190.7 million, showing a 6.6% growth from a prior-year period. Moreover, its occupancy levels also grew to 99.1% during the quarter.
National Retail Properties, Inc. (NYSE:NNN) is one the most reliable stocks as the company has been raising its dividends for the past 33 years. In July, the company announced a 3.8% hike in its quarterly dividend to $0.55 per share. The stock’s yield was recorded at 4.76% on August 23.
In August, Stifel raised its price target on National Retail Properties, Inc. (NYSE:NNN) to $54 with a Buy rating on the shares, highlighting the company’s earnings beat.
As of the end of June 2022, 18 hedge funds tracked by Insider Monkey owned stakes in National Retail Properties, Inc. (NYSE:NNN), the same as in the previous quarter. These stakes hold a value of over $92.2 million.
7. W. P. Carey Inc. (NYSE:WPC)
Dividend Yield as of August 23: 4.89%
W. P. Carey Inc. (NYSE:WPC) invests in properties leased to single tenants and also specializes in sale-leasebacks. The stock was initiated at Wolfe Research with a Peer Perform rating in June and the firm kept an $88 price target on the stock.
In the first six months of 2022, W. P. Carey Inc. (NYSE:WPC) reported $103.6 million in cash and cash equivalents and its total assets came in at $15.4 billion. The company’s revenue in Q2 jumped by 9.4% year-over-year to $344.4 million. It remained committed to shareholder value, returning over $207.5 million in dividends in the first half of the year. W. P. Carey Inc. (NYSE:WPC) declared a quarterly dividend of $1.059 per share in June, with a dividend yield of 4.89%, as of August 23. The company has been growing its dividend consecutively for the past 26 years.
At the end of Q2 2022, 17 hedge funds tracked by Insider Monkey owned stakes in W. P. Carey Inc. (NYSE:WPC), down from 22 a quarter earlier. These stakes hold a collective value of over $70.5 million, compared with $128.3 million worth of stakes owned by hedge funds in the previous quarter.
6. One Liberty Properties, Inc. (NYSE:OLP)
Dividend Yield as of August 23: 7.07%
One Liberty Properties, Inc. (NYSE:OLP) is a New York-based REIT that owns and manages a geographically diversified portfolio consisting of industrial properties. The company was a part of 5 hedge fund portfolios in Q2 2022, as tracked by Insider Monkey. The stakes owned by these hedge funds hold a value of nearly $24 million.
In Q2 2022, One Liberty Properties, Inc. (NYSE:OLP) reported a rental income of $21.5 million, showing a 6% growth from the same period last year. The company reported $17.6 million in cash and cash equivalents, with its total assets standing at $780.7 million. Moreover, its total stakeholders’ equity was $315.2 million at the end of the quarter.
Though One Liberty Properties, Inc. (NYSE:OLP) hasn’t raised its dividends since 2017, the company maintained its payouts over these years. Its quarterly dividend stands at $0.45 per share, with a yield of 7.07%, as of August 23. The stock can be a part of dividend portfolios among other famous dividend stocks like The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and The Procter & Gamble Company (NYSE:PG).
Click to continue reading and see 5 Best and Reliable High Dividend REITs to Buy Now.
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Disclosure. None. 10 Best and Reliable High Dividend REITs to Buy Now is originally published on Insider Monkey.
Click to continue reading and see 5 Best and Reliable High Dividend REITs to Buy Now.
Suggested articles:
- 10 Best REIT Stocks to Buy Right Now
- 10 Best REIT Stocks with High Dividend Yields
- Top 10 REIT Stocks Under $10
Disclosure. None. 10 Best and Reliable High Dividend REITs to Buy Now is originally published on Insider Monkey.
