In this article, we will be looking at 10 real estate dividend stocks to buy in August 2021.
While the industry outlook for real estate and REITs in 2021 may seem bleak to some, and uncertain to others, the rising vaccination rates and economic recovery can testify to the claim that all hope may not be lost just yet for real estate investors. For instance, while vacancy rates for industrial centers and retailers rose to about 5.7% and 5% respectively in the third quarter of 2020, other property sectors that were more suited to the online sphere ended up benefitting and growing. One such example is data centers, for instance, housing Internet website hosting servers and providing related services. Additionally, REITs themselves have proven to be strong in the face of the pandemic and the economic crisis triggered by it. For example, REITs managed to raise about $469 billion in common equity capital from 2009 to 2020, and also maintained high liquidity levels during the pandemic.
Moreover, despite initial setbacks like disruptions in the cash flows of tenants resulting in rent avoidance and non-payment, REITs still managed to bounce back by about the third quarter of 2020. So while REIT earnings, measured by funds from operations, dropped by about 23.5% in Q2 last year, the situation was steadily managed and improved by the next quarter. Earnings measured by FFO thus rose by as much as roughly 5.6% in the third quarter of 2020, with the same sectors that were among the most affected by the pandemic, leading the recovery. These included the lodging/resorts, retail, and diversified REITs sectors. Finally, the stock market performance of REITs has also managed to bounce back from the -37.6% as of March 23rd, 2020, by bringing in a return of 50% as of November 30th, 2020. As such, it can be safely claimed that real estate and REITs may well be out of the worst of the pandemic by now.
Perhaps one of the biggest testaments to the above claim is the performance of some well-known REIT stocks, like Simon Property Group, Inc. (NYSE: SPG). Having beat second-quarter 2021 FFO estimates by bringing in $2.92 in FFO, alongside a $1.25 billion revenue, again beating consensus estimates, Simon Property Group, Inc. (NYSE: SPG) has managed to showcase the growing resilience of REIT stocks in the midst of the COVID-19 pandemic. Not only this, but the company has managed to raise its 2021 FFO per share outlook alongside hiking its quarterly dividend, further showcasing its own financial strength. Hence, REIT dividend stocks can safely be considered to be becoming investor favorites, much like other dividend stocks like Altria Group, Inc. (NYSE: MO), Verizon Communications, Inc. (NYSE: VZ), and McDonald’s Corporation (NYSE: MCD).
Dividend investing is becoming difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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Let’s now look at the 10 real estate dividend stocks to buy in August 2021.
The stocks added to our list below were selected on the basis of hedge fund sentiment discerned by analyzing Insider Monkey’s data of 866 hedge funds. We have ranked the stocks from lowest to the highest number of hedge fund holders, and have also mentioned their dividend yields. Finally, we made sure to include stocks with mostly positive analysts’ ratings and strong fundaments showcasing business strengths.
Real Estate Dividend Stocks to Buy in August 2021
10. Healthcare Realty Trust Incorporated (NYSE: HR)
Number of Hedge Fund Holders: 20
Dividend Yield: 3.8%
Healthcare Realty Trust Incorporated (NYSE: HR), a real estate investment trust based in Nashville, Tennessee, ranks 10th on our list of real estate dividend stocks to buy in August 2021. The company specializes in the ownership, management, acquisition, and development of outpatient medical facilities in the US.
Vikram Malhotra, an analyst at Morgan Stanley, raised his price target on Healthcare Realty Trust Incorporated (NYSE: HR) shares this March from $30 to $31. Malhotra also holds an Equal Weight rating on the stock.
In the second quarter of 2021, Healthcare Realty Trust Incorporated (NYSE: HR) had an FFO of $0.43, in line with estimates. The company’s revenue was $131.42 million, up 6.25% year over year and beating the previous quarter’s revenue of $130.34 million. Healthcare Realty Trust Incorporated (NYSE: HR) has also gained 1.27% in the past 6 months and 8.68% year to date.
By the end of the first quarter of 2021, 20 hedge funds out of the 866 tracked by Insider Monkey held stakes in Healthcare Realty Trust Incorporated (NYSE: HR) worth roughly $172 million. This is compared to 23 hedge funds in the previous quarter with a total stake value of approximately $172 million.
Like Simon Property Group, Inc. (NYSE: SPG), Altria Group, Inc. (NYSE: MO), Verizon Communications, Inc. (NYSE: VZ), and McDonald’s Corporation (NYSE: MCD), Healthcare Realty Trust Incorporated (NYSE: HR) is a good stock to invest in.
9. Welltower Inc. (NYSE: WELL)
Number of Hedge Fund Holders: 21
Dividend Yield: 2.8%
Welltower Inc. (NYSE: WELL) is a provider of healthcare infrastructure for the facilitation of better and cheaper treatment for patients. The company has a relationship-based investing platform and ranks 9th on our list of real estate dividend stocks to buy in August 2021.
This August, Berenberg’s Connor Siversky upgraded shares of Welltower Inc. (NYSE: WELL) from Hold to Buy. Siversky also placed a $100 price target on the stock.
In the second quarter of 2021, Welltower Inc. (NYSE: WELL) had an FFO of $0.79, beating estimates by $0.02. The company’s revenue was $1.14 billion, also beating estimates by $28.36 million. Welltower Inc. (NYSE: WELL) has gained 62.84% in the past year.
By the end of the first quarter of 2021, 21 hedge funds out of the 866 tracked by Insider Monkey held stakes in Welltower Inc. (NYSE: WELL) worth roughly $326 million. This is compared to 26 hedge funds in the previous quarter with a total stake value of approximately $538 million.
Like Simon Property Group, Inc. (NYSE: SPG), Altria Group, Inc. (NYSE: MO), Verizon Communications, Inc. (NYSE: VZ), and McDonald’s Corporation (NYSE: MCD), Welltower Inc. (NYSE: WELL) is a good stock to invest in.
8. SL Green Realty Corp. (NYSE: SLG)
Number of Hedge Fund Holders: 21
Dividend Yield: 5%
SL Green Realty Corp. (NYSE: SLG) specializes in investing in office buildings and shopping centers in the real estate investment trust industry. The company mainly operates in New York and ranks 8th on our list of real estate dividend stocks to buy in August 2021.
In June, Deutsche Bank’s Derek Johnston raised his price target on SL Green Realty Corp. (NYSE: SLG) shares from $66 to $77. Johnston also reiterated his Hold rating on the stock.
In the second quarter of 2021, SL Green Realty Corp. (NYSE: SLG) had an FFO of $1.60, missing estimates by $0.02. The company’s revenue was $184.61 million, beating estimates by $2.09 million. SL Green Realty Corp. (NYSE: SLG) has also gained 12.55% in the past 6 months and 21.71% year to date.
By the end of the first quarter of 2021, 21 hedge funds out of the 866 tracked by Insider Monkey held stakes in SL Green Realty Corp. (NYSE: SLG) worth roughly $162 million. This is compared to 22 hedge funds in the previous quarter with a total stake value of approximately $214 million.
Like Simon Property Group, Inc. (NYSE: SPG), Altria Group, Inc. (NYSE: MO), Verizon Communications, Inc. (NYSE: VZ), and McDonald’s Corporation (NYSE: MCD), SL Green Realty Corp. (NYSE: SLG) is a good stock to invest in.
7. Sabra Health Care REIT, Inc. (NASDAQ: SBRA)
Number of Hedge Fund Holders: 21
Dividend Yield: 6.5%
Sabra Health Care REIT, Inc. (NASDAQ: SBRA) is a REIT based in California and ranks 7th on our list of real estate dividend stocks to buy in August 2021. The company has a diverse portfolio and operates as a leader in the healthcare REIT sector.
Mizuho’s Haendel St. Juste recently took over coverage of shares of Sabra Health Care REIT, Inc. (NASDAQ: SBRA) this July. The analyst holds a Neutral rating on the stock with an $18 price target placed on Sabra Health Care REIT, Inc. (NASDAQ: SBRA) shares as well.
In the first quarter of 2021, Sabra Health Care REIT, Inc. (NASDAQ: SBRA) had an FFO of $0.16, missing estimates by $0.01. The company’s revenue was $152.37 million, up 2.02% year over year and beating estimates by $1.94 million. Sabra Health Care REIT, Inc. (NASDAQ: SBRA) has also gained 2.38% year to date and 17.68% in the past year.
By the end of the first quarter of 2021, 21 hedge funds out of the 866 tracked by Insider Monkey held stakes in Sabra Health Care REIT, Inc. (NASDAQ: SBRA) worth roughly $112 million. This is compared to 20 hedge funds in the previous quarter with a total stake value of approximately $105 million.
Like Simon Property Group, Inc. (NYSE: SPG), Altria Group, Inc. (NYSE: MO), Verizon Communications, Inc. (NYSE: VZ), and McDonald’s Corporation (NYSE: MCD), Sabra Health Care REIT, Inc. (NASDAQ: SBRA) is a good stock to invest in.
6. Arbor Realty Trust, Inc. (NYSE: ABR)
Number of Hedge Fund Holders: 21
Dividend Yield: 7.7%
Arbor Realty Trust, Inc. (NYSE: ABR) is a REIT whose subsidiaries include Arbor Realty Partnership among others, and it ranks 6th on our list of real estate dividend stocks to buy in August 2021. The company operates in the multifamily and commercial real estate areas.
JPMorgan’s Charles Arestia has an Overweight rating on Arbor Realty Trust, Inc. (NYSE: ABR) alongside a price target of $18.
In the second quarter of 2021, Arbor Realty Trust, Inc. (NYSE: ABR) had an FFO of $0.51, beating estimates by $0.07. The company’s revenue was $58.77 million, up 40.67% year over year and also beating estimates by $4.5 million. Arbor Realty Trust, Inc. (NYSE: ABR) has also gained 18.38% in the past 6 months and 32.34% year to date.
By the end of the first quarter of 2021, 21 hedge funds out of the 866 tracked by Insider Monkey held stakes in Arbor Realty Trust, Inc. (NYSE: ABR) worth roughly $103 million. This is compared to 14 hedge funds in the previous quarter with a total stake value of approximately $68.4 million.
Like Simon Property Group, Inc. (NYSE: SPG), Altria Group, Inc. (NYSE: MO), Verizon Communications, Inc. (NYSE: VZ), and McDonald’s Corporation (NYSE: MCD), Arbor Realty Trust, Inc. (NYSE: ABR) is a good stock to invest in.
5. National Retail Properties, Inc. (NYSE: NNN)
Number of Hedge Fund Holders: 22
Dividend Yield: 4.4%
National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust company that specializes in investing in high-quality properties with long-term NNN leases, ranks 5th on our list of real estate dividend stocks to buy in August 2021. The company is based in Florida.
This July, Wells Fargo’s Todd Stender raised his price target on National Retail Properties, Inc. (NYSE: NNN) shares from $44 to $50 alongside retaining an Equal Weight rating on the stock.
In the second quarter of 2021, National Retail Properties, Inc. (NYSE: NNN) had an FFO of $0.70, beating estimates by $0.02. The company’s revenue was $179.01 million, up 9.35% year over year and also beating estimates by $2.01 million. National Retail Properties, Inc. (NYSE: NNN) has also gained 19.41% in the past 6 months and 22.9% year to date.
By the end of the first quarter of 2021, 22 hedge funds out of the 866 tracked by Insider Monkey held stakes in National Retail Properties, Inc. (NYSE: NNN) worth roughly $289 million. This is compared to 14 hedge funds in the previous quarter with a total stake value of approximately $306 million.
4. Vornado Realty Trust (NYSE: VNO)
Number of Hedge Fund Holders: 25
Dividend Yield: 4.9%
Vornado Realty Trust (NYSE: VNO) is next on our list of real estate dividend stocks to buy in August 2021 and ranks 4th. The company is a Maryland-founded REIT now based in New York and invests in office buildings and street retail in Manhattan.
BMO Capital reiterated an Outperform rating on shares of Vornado Realty Trust (NYSE: VNO) this August. Analyst John Kim also kept a $52 price target on the shares, commenting that Vornado Realty Trust (NYSE: VNO) is holding “steady” despite facing weak demand.
In the second quarter of 2021, Vornado Realty Trust (NYSE: VNO) had an FFO of $0.80, beating estimates by $0.09. The company’s revenue was $378.94 million, up 10.47% year over year and also beating estimates by $41,000. Vornado Realty Trust (NYSE: VNO) has also gained 13.48% in the past 6 months and 15.74% year to date.
By the end of the first quarter of 2021, 25 hedge funds out of the 866 tracked by Insider Monkey held stakes in Vornado Realty Trust (NYSE: VNO) worth roughly $216 million. This is compared to 23 hedge funds in the previous quarter with a total stake value of approximately $178 million.
3. Omega Healthcare Investors, Inc. (NYSE: OHI)
Number of Hedge Fund Holders: 25
Dividend Yield: 7.4%
Omega Healthcare Investors, Inc. (NYSE: OHI), a triple-net equity REIT ranks 3rd on our list of real estate dividend stocks to buy in August 2021. The company finances and offers capital to Skilled Nursing Facility and Assisted Living Facility operators.
This July, Mizuho’d Haendel St. Juste took over coverage of shares of Omega Healthcare Investors, Inc. (NYSE: OHI) with a Neutral rating. The analyst also placed a $39 price target on the stock.
In the second quarter of 2021, Omega Healthcare Investors, Inc. (NYSE: OHI) had an FFO of $0.85, beating estimates by $0.02. The company’s revenue was $218 million, up 0.27% year over year but missing estimates by $17.89 million. Omega Healthcare Investors, Inc. (NYSE: OHI) has also gained 9.3% in the past year.
By the end of the first quarter of 2021, 25 hedge funds out of the 866 tracked by Insider Monkey held stakes in Omega Healthcare Investors, Inc. (NYSE: OHI) worth roughly $190 million. This is compared to 15 hedge funds in the previous quarter with a total stake value of approximately $101 million.
2. American Campus Communities, Inc. (NYSE: ACC)
Number of Hedge Fund Holders: 26
Dividend Yield: 3.7%
American Campus Communities, Inc. (NYSE: ACC) is based in Austin, Texas, and ranks 2nd on our list of real estate dividend stocks to buy in August 2021. The company is the largest developer and manager of student housing communities in the US and was founded in 1993.
Piper Sandler’s Alexander Goldfarb upgraded shares of American Campus Communities, Inc. (NYSE: ACC) this May from Neutral to Overweight. The analyst also raised his price target on American Campus Communities, Inc. (NYSE: ACC) shares from $48 to $55.
In the second quarter of 2021, American Campus Communities, Inc. (NYSE: ACC) had an FFO of $0.42, beating estimates by $0.05. The company’s revenue was $199.62 million, up 12.66% year over year and also beating estimates by $10.91 million. American Campus Communities, Inc. (NYSE: ACC) has also gained 15.76% in the past 6 months and 20.92% year to date.
By the end of the first quarter of 2021, 26 hedge funds out of the 866 tracked by Insider Monkey held stakes in American Campus Communities, Inc. (NYSE: ACC) worth roughly $231 million. This is compared to 15 hedge funds in the previous quarter with a total stake value of approximately $242 million.
1. UDR, Inc. (NYSE: UDR)
Number of Hedge Fund Holders: 30
Dividend Yield: 2.6%
UDR, Inc. (NYSE: UDR), a publicly-traded REIT, invests in apartments in the US and ranks 1st on our list of real estate dividend stocks to buy in August 2021. The company is based in Colorado and as of December 2020, was operating and owned interests in about 149 apartment communities made up of roughly 48,283 apartment units.
Keybanc’s Jordan Sadler raised his price target on shares of UDR, Inc. (NYSE: UDR) just this July. The new price target is $55, up from the previous target of $46, and Sadler also reiterated his Overweight rating on UDR, Inc. (NYSE: UDR) shares.
In the second quarter of 2021, UDR, Inc. (NYSE: UDR) had an FFO of $0.49, in line with estimates. The company’s revenue was $309.12 million, up 1.02% year over year and also beating estimates by $5.26 million. UDR, Inc. (NYSE: UDR) has also gained 37.38% in the past 6 months and 49.39% year to date.
By the end of the first quarter of 2021, 30 hedge funds out of the 866 tracked by Insider Monkey held stakes in UDR, Inc. (NYSE: UDR) worth roughly $312 million. This is compared to 23 hedge funds in the previous quarter with a total stake value of approximately $482 million.
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Disclosure: None. 10 Real Estate Dividend Stocks to Buy in August 2021 is originally published on Insider Monkey.
