In this article, we will take a look at the Dividend Champions, Contenders and Challengers list: 15 Highest Yielding Stocks.
Dividend Champions are companies that have raised their dividends for at least 25 consecutive years and may not be part of the S&P 500. Dividend challengers sit in the next tier, with dividend growth lasting between 10 and 24 years. Dividend contenders round out the group, having increased payouts for 5 to 9 years. Investors are often drawn to these companies because long dividend streaks usually reflect financial strength and a business that can produce dependable income.
In many periods, dividend-paying equities have done better than companies that don’t have dividend policies. Dividends make up a meaningful share of long-term equity returns and help smooth results along the way. Over time, that income component has played a major role in delivering steadier, more balanced outcomes.
Data from Morningstar shows just how important dividends have been across different market environments. In the 1940s, the S&P 500 generated average annual returns of about 9%, with roughly two-thirds of those returns coming from dividends rather than price gains. Dividends accounted for 29% of total returns in the 1950s and 44% in the 1960s. During the inflation-heavy 1970s, their contribution jumped to 73%. Their influence eased in later decades as dividends made up 28% of returns in the 1980s, 16% in the 1990s, and 17% in the 2010s. In the 2000s, dividends effectively carried the market, as stock prices declined overall. Looking at the full period from 1940 through 2019, dividends represented about 35% of total market returns. Ignoring them means leaving a meaningful share of long-term performance behind.
A report from Eagle Global Advisors highlights that some investors only focus on the highest dividend yield. That approach misses two critical qualities: stability and growth. In many cases, the stocks with the biggest yields are under pressure and struggling to sustain their payouts. The report further mentioned that dividend cutters and eliminators have delivered the weakest performance since 1972. Companies that simply maintain a steady dividend have outperformed the equal-weighted S&P 500. Even so, those returns fall short of what investors have earned from portfolios built around dividend growers and initiators.
Finding dividends that are both reliable and growing places a real value on active portfolio management and a deep understanding of dividend policies and long-term trends.
Given this, we will take a look at some of the best dividend stocks to invest in.
Our Methodology:
For this article, we scanned the lists of Dividend Champions, Contenders, and Challengers and picked stocks with the highest dividend yields, as of February 9. We have also mentioned the number of consecutive years each company has grown its dividend. The stocks are ranked according to their dividend yields.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
15. Murphy Oil Corporation (NYSE:MUR)
Dividend Yield as of February 9: 4.30%
Consecutive Years of Dividend Growth: 6 Years
Category: Dividend Challengers
On February 3, BMO Capital trimmed its price recommendation on Murphy Oil Corporation (NYSE:MUR) to $35 from $37. It maintained a Market Perform rating on the stock. The firm said it lowered its estimates after Murphy posted Q4 results that largely matched expectations. Looking further out, BMO flagged a softer 2026 production outlook, pointing to pressure from Montney royalties and the Gulf of America. Even so, the analyst noted that Murphy still ranks well on free cash flow breakeven metrics and is expected to keep leverage at modest levels.
Speaking on the Q4 2025 earnings call, President and CEO Eric Hambly said production topped guidance for both the quarter and the full year. He credited the beat to some of the strongest onshore wells the company has drilled to date, along with consistently high uptime at its core offshore assets.
Hambly also highlighted clear progress on costs. Lease operating expenses were down roughly 20% from last year, and capital spending came in below guidance. He said a portion of those savings reflected efficiency gains in the Eagle Ford Shale program.
On the exploration front, Hambly characterized the quarter as uneven but overall positive. He said the appraisal at Hai Su Vang in the Golden Sea Lion field delivered strong results, while both exploration wells in the Gulf of America led to oil discoveries. That said, the Civette well offshore Côte d’Ivoire did not find commercial hydrocarbons.
Digging deeper into Vietnam, Hambly noted that the appraisal well intersected about 429 feet of net oil pay and did not reach the oil-water contact. Based on that outcome, he suggested the resource potential could end up well above the company’s initial midpoint estimate of 170 million barrels of oil equivalent.
Murphy Oil Corporation (NYSE:MUR) is a global exploration and production company with a mix of onshore and offshore assets. Its output includes crude oil, natural gas, and natural gas liquids, primarily from the U.S. and Canada, while its exploration efforts are focused on select regions around the world.
14. Franklin Resources, Inc. (NYSE:BEN)
Dividend Yield as of February 9: 4.76%
Consecutive Years of Dividend Growth: 50 Years
Category: Dividend Champions
On February 3, Morgan Stanley raised its price recommendation on Franklin Resources, Inc. (NYSE:BEN) to $22 from $21. It kept an Underweight rating on the stock and trimmed its calendar Q4 adjusted EPS estimate by 14%, pointing to higher operating costs. At the same time, the firm took a more optimistic view further out, lifting its 2026 adjusted EPS forecast by 6.3% and nudging its 2027 estimate up 0.7%, supported by expectations for stronger fee income and better non-operating investment returns.
On February 4, Franklin reported preliminary month-end assets under management of $1.71 trillion as of January 31, 2026, up from $1.68 trillion at the end of December. The increase reflected favorable market conditions along with about $1.5 billion in long-term net inflows. That total included roughly $1.5 billion of long-term net outflows at Western Asset Management. Excluding Western Asset, long-term net inflows were closer to $3 billion.
Western Asset’s preliminary AUM came in at $216 billion at the end of January, slightly down from $217 billion a month earlier. Market gains helped, but those were partly offset by the long-term outflows recorded during the month.
Franklin Resources, Inc. (NYSE:BEN) operates globally under the Franklin Templeton name, offering investment strategies across equities, fixed income, alternatives, and multi-asset solutions to clients in more than 150 countries.
13. T. Rowe Price Group, Inc. (NASDAQ:TROW)
Dividend Yield as of February 9: 5.29%
Consecutive Years of Dividend Growth: 40 Years
Category: Dividend Champions
On February 5, Evercore ISI cut its price target on T. Rowe Price Group, Inc. (NASDAQ:TROW) to $106 from $116 and kept an In Line rating on the stock. The firm said the quarter mostly matched expectations, but flagged equity outflows as a “significant concern,” according to the analyst’s note to investors.
During the Q4 2025 earnings call, President, CEO, and Chair Robert Sharps said T. Rowe Price closed the year with $1.78 trillion in assets under management. That marked growth of more than 10% from the beginning of the year, even as the firm saw $56.9 billion in net outflows. Sharps said the company continued to gain traction across its strategic priorities and expressed confidence in both the long-term plan and the team executing it.
He pointed to improving performance across several key investment strategies and said the firm’s long-term results remained particularly strong in fixed income and its Target Date franchise. Sharps also noted progress on the strategic front, highlighting a collaboration with Goldman Sachs focused on wealth and retirement opportunities. As part of that effort, the firms rolled out their first co-branded model portfolios. He added that, in January, T. Rowe Price announced another strategic partnership with First Abu Dhabi Bank.
On product expansion, Sharps said the company launched 13 ETFs during 2025, bringing the total lineup to 30 and pushing ETF assets past $21 billion. He also noted that T. Rowe Price achieved a first close on a firm-managed private equity fund in early 2026, while OHA recorded its second straight year of record fundraising, raising more than $16 billion.
T. Rowe Price Group, Inc. (NASDAQ:TROW) is a financial services holding company that offers investment advisory services worldwide. Its platform spans equity, fixed income, multi-asset, and alternative strategies, serving a broad client base that includes individual investors, financial advisors, institutions, and retirement plan sponsors.
12. Midland States Bancorp, Inc. (NASDAQ:MSBI)
Dividend Yield as of February 9: 5.35%
Consecutive Years of Dividend Growth: 25 Years
Category: Dividend Champions
On January 26, DA Davidson lifted its price target on Midland States Bancorp, Inc. (NASDAQ:MSBI) to $24 from $23 and kept a Neutral rating following the company’s Q4 results. While earnings came in below expectations, the firm said Midland’s push to refocus the business around its core community banking model, with greater consistency and stronger credit discipline, could set up a much cleaner performance profile in 2026.
During the Q4 2025 earnings call, President and CEO Jeffrey G. Ludwig said the company entered the year with a clear priority on improving credit quality. Throughout 2025, management worked to reduce risk in the loan portfolio and strengthen the balance sheet. Ludwig noted that the company upgraded its credit team, reinforced its credit culture, and tightened underwriting standards. Although non-performing assets were still above the firm’s 0.75% target, he said the progress made during the year laid a solid foundation for continued improvement. He also emphasized that these changes were made without raising new capital, even as the company continued investing in its core businesses.
By year-end, Midland’s capital position had improved as well. The common equity tier 1 ratio increased to 9.89%, bringing it closer to the company’s 10% target. With shares trading near tangible book value during the quarter, the company repurchased $9.6 million of its common stock.
On the revenue front, Ludwig said trends held up well in the fourth quarter. Performance was supported by a healthy net interest margin and roughly 6.5% annualized loan growth in the Community Bank segment. He added that the wealth management business posted another record quarter. Looking ahead, Ludwig said the company plans to keep investing in these areas and expects the momentum to extend into 2026.
Midland States Bancorp, Inc. (NASDAQ:MSBI) is a diversified financial holding company with operations spanning Banking, Wealth Management, and Other segments. The Banking unit provides a broad range of financial products and services to both consumers and businesses.
11. Edison International (NYSE:EIX)
Dividend Yield as of February 9: 5.50%
Consecutive Years of Dividend Growth: 22 Years
Category: Dividend Contenders
On January 22, Barclays trimmed its price target on Edison International (NYSE:EIX) to $67 from $68. However, the firm reiterated an Overweight rating on the stock. The move came as part of a broader reset across the power and utilities sector ahead of Q4 earnings.
On January 21, Morgan Stanley lifted its price target on Edison International to $61 from $57, while keeping an Underweight rating on the stock. The update came as part of a broader refresh of Morgan Stanley’s North American coverage of regulated and diversified utilities and independent power producers. The firm noted that utility stocks lagged the S&P 500 in December, a trend the analyst highlighted in the research note to investors.
Edison International (NYSE:EIX) is an electric utility holding company focused on delivering clean, reliable energy and related services through its operating businesses. It is the parent company of Southern California Edison and Trio.
10. United Parcel Service, Inc. (NYSE:UPS)
Dividend Yield as of February 9: 5.56%
Consecutive Years of Dividend Growth: 23 Years
Category: Dividend Contenders
On January 28, David Vernon of Bernstein raised his price recommendation on United Parcel Service, Inc. (NYSE:UPS) to $128 from $125. It reiterated an Outperform rating on the stock. The firm said UPS delivered a very strong Q4 2025 performance and issued 2026 guidance that was broadly in line with expectations. Revenue came in better than anticipated, while margins were weaker than expected. Bernstein argued that the strength of the Q4 beat, combined with where margins exited the year, should be enough to balance out the softer margin outlook.
A January 27 report from Reuters said UPS plans to cut as many as 30,000 jobs and close another 24 facilities in 2026. The company described these moves as part of its ongoing effort to reduce exposure to lower-margin deliveries tied to Amazon, as it shifts its focus toward more profitable parts of the business.
That strategy has been in motion for some time. Early last year, UPS said it would accelerate plans to cut back millions of Amazon deliveries, calling that volume highly dilutive to margins. UPS and rivals such as FedEx have also been navigating softer demand across the broader delivery market.
In 2025, UPS eliminated 48,000 roles, offered buyouts to drivers, and closed 93 locations as Amazon-related volumes continued to decline. The additional cuts planned for 2026 are expected to come mainly through attrition and another round of voluntary buyouts for full-time drivers. According to Chief Financial Officer Brian Dykes, the company does not plan to implement layoffs.
United Parcel Service, Inc. (NYSE:UPS) provides integrated logistics services to customers in more than 200 countries and territories. Its US Domestic Package business includes a wide range of air and ground delivery services across the United States.
9. NNN REIT, Inc. (NYSE:NNN)
Dividend Yield as of February 9: 5.57%
Consecutive Years of Dividend Growth: 36 Years
Category: Dividend Champion
NNN REIT, Inc. (NYSE:NNN) is a retail-focused REIT built around freestanding properties that are leased on a triple-net basis to national and regional tenants. Its portfolio leans toward everyday, necessity-based uses such as auto service centers, convenience stores, restaurants, and family entertainment venues. Because tenants cover most property-level costs, those leases tend to generate stable and steadily rising rental income.
What really sets NNN apart is its dividend history. In 2025, the company delivered its 36th straight year of dividend growth. That puts it in a very small club, with only two other REITs and fewer than 80 publicly traded U.S. companies having managed to raise their dividends for 35 years or more.
That streak looks well supported going forward. NNN’s payout ratio sits below 70% of FFO, and its balance sheet remains conservative, with leverage around 5.6x. That gives the company plenty of room to keep growing while still rewarding shareholders. As the portfolio expands and cash flow continues to build, dividend growth should remain achievable.
NNN REIT, Inc. (NYSE:NNN) also stays active on the investment front. Last year, it was targeting $850 million to $950 million in new property acquisitions, partly funded by selling $170 million to $200 million of assets. Most purchases come from long-standing tenant relationships, often through sale-leaseback deals. Since 2010, about 72% of its investments have come through these repeat relationships, helping ensure a steady pipeline of income-producing properties.
8. Silvercrest Asset Management Group Inc. (NASDAQ:SAMG)
Dividend Yield as of February 9: 5.64%
Consecutive Years of Dividend Growth: 9 Years
Category: Dividend Challengers
During its latest earnings call, Richard Hough, CEO, President, and Chairman of Silvercrest Asset Management Group, said discretionary assets under management rose by $687 million in the third quarter. He attributed most of that increase to favorable equity market conditions. Hough also pointed to steady organic growth, noting that new client accounts added $46.4 million during the quarter and $564 million year to date through the third quarter. By the end of the period, discretionary AUM reached $24.3 billion, reflecting a 3% increase from the prior quarter and an 8% gain from a year earlier. He added that total firm-wide AUM climbed to a record $37.6 billion.
Hough said the firm has been making meaningful strategic investments aimed at supporting long-term growth. Those efforts have centered on expanding intellectual capital and headcount, which he acknowledged has weighed on earnings and adjusted EBITDA in the near term.
He also provided an update on capital returns, saying the company continues to execute on its $25 million share repurchase program. As of the end of the third quarter of 2025, about $16 million of stock had already been bought back. In addition, Hough noted that Silvercrest plans to pay a $0.21 per-share dividend in December and expects to distribute equity-based incentives to its professionals in the near future.
Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) is a full-service wealth management firm operating within the investment management space. The company specializes in delivering financial advisory and family office services, primarily serving ultra-high-net-worth individuals along with institutional clients.
7. Four Corners Property Trust, Inc. (NYSE:FCPT)
Dividend Yield as of February 9: 5.67%
Consecutive Years of Dividend Growth: 9 Years
Category: Dividend Challengers
On January 27, Four Corners Property Trust, Inc. (NYSE:FCPT) said it acquired a GreatWater 360 Auto Care location for $2.3 million through a sale-leaseback transaction. The property sits along a high-traffic corridor in Minnesota and is operated at the corporate level under a long-term, triple-net lease. Pricing for the deal fell in line with cap rates seen in FCPT’s recent transactions.
A day earlier, on January 26, the company announced another $2.3 million acquisition, this time a newly built McAlister’s Deli property. The site is located in a strong retail corridor in Michigan and is operated by a franchisee under a long-term net lease. That transaction was also completed at a cap rate consistent with FCPT’s prior deals.
More broadly, 2025 was an active year for Four Corners on the acquisition front. The REIT added 105 properties to its portfolio for about $318 million, excluding transaction costs, with most of the growth coming from single-tenant, net-leased assets. Individual purchases during the year included a Sprouts Farmers Market property in Tennessee for $8.6 million, four Mission Pet Health facilities in Illinois and Wisconsin for $9.3 million, a VCA Animal Hospital site in New York for $5.8 million, and a Heartland Dental location in Michigan for $3.3 million.
Momentum picked up in the third quarter, when the company closed on 28 properties for roughly $82 million, securing attractive initial cash yields and long lease terms. Overall, management consistently deployed capital into service-oriented and necessity-based real estate, strengthening the portfolio’s stability and long-term income profile.
Four Corners Property Trust, Inc. (NYSE:FCPT)is a real estate investment trust that owns, acquires, and leases properties primarily used in the restaurant and retail industries. Its operations are organized across real estate and restaurant segments.
6. Verizon Communications Inc. (NYSE:VZ)
Dividend Yield as of February 9: 6.03%
Consecutive Years of Dividend Growth: 19 Years
Category: Dividend Contenders
On February 2, TD Cowen lifted its price recommendation on Verizon Communications Inc. (NYSE:VZ) to $54 from $51. The firm reiterated a Buy rating on the stock, citing Verizon’s Q4 results, where phone subscriber additions came in stronger than expected, even though that growth weighed somewhat on EBITDA.
On January 30, Verizon reported its fourth-quarter 2025 earnings and said it met its full-year guidance. The company also delivered its strongest pace of net customer additions since 2019 during the quarter, a notable milestone given how closely investors watch net adds as a measure of telecom growth.
That strong close to the year helped shift sentiment around the stock. Shares climbed about 12% on the day earnings were released, despite full-year operating revenue increasing a modest 2.5% to $138.2 billion. Earlier in January, Verizon completed its acquisition of Frontier Communications, a deal that expands its fiber footprint and adds another avenue for long-term growth.
From a dividend standpoint, free cash flow remains the key figure to watch. Verizon generated $20.1 billion in free cash flow over the past year, up from $19.8 billion the year before. With annual dividend payments running around $11.6 billion, the company has a solid cushion to keep investing in the business while continuing to return cash to shareholders.
Verizon Communications Inc. (NYSE:VZ) operates as a holding company and, through its subsidiaries, provides communications, technology, information, and streaming services to consumers, businesses, and government customers. Its Consumer segment offers both wireless and wireline communication services.
5. VICI Properties Inc. (NYSE:VICI)
Dividend Yield as of February 9: 6.07%
Consecutive Years of Dividend Growth: 8 Years
Category: Dividend Challengers
On February 2, Scotiabank downgraded VICI Properties Inc. (NYSE:VICI) to Sector Perform from Outperform and cut its price target to $30 from $36. The firm pointed to the ongoing uncertainty tied to the Caesars Entertainment Regional Master Lease, along with signs that external growth may be becoming more limited. While Scotiabank believes management can eventually land on a workable solution, the lack of near-term clarity is likely to weigh on the stock’s ability to gain momentum.
VICI is still a relatively young REIT, having been created in 2017 as a spinoff from Caesars during its Chapter 11 restructuring. Since then, it has grown quickly, building out a large portfolio of casino real estate through sale-leaseback deals, merging with another major gaming REIT, and gradually expanding into other experiential assets. Today, the portfolio includes several well-known casino properties alongside newer experiential investments, such as bowling and entertainment venues.
The company leases its properties back to operators under triple-net agreements, with about half of the rent tied to inflation. That structure supports highly stable cash flow and provides built-in rent growth over time.
From a financial standpoint, VICI remains on solid footing. Its dividend payout ratio is around 75%, and it maintains an investment-grade balance sheet with leverage of roughly 5.0x. That gives the REIT room to keep investing. In addition to acquisitions, the company also provides capital to partners for property upgrades and development projects, creating another source of steady income.
VICI Properties Inc. (NYSE:VICI) has also been consistent on the dividend front. It has raised its dividend every year since going public, most recently delivering its eighth consecutive annual increase in late 2025.
4. Universal Corporation (NYSE:UVV)
Dividend Yield as of February 9: 6.29%
Consecutive Years of Dividend Growth: 55 Years
Category: Dividend Champions
Universal Corporation (NYSE:UVV) reported its fiscal Q3 2026 results on February 9, with Chairman, President, and CEO Preston D. Wigner describing the quarter and the first nine months of the fiscal year as a solid stretch for the company. He said the tobacco business continued to hold up well, supported by steady demand across most tobacco types and smooth shipment activity. While he noted signs that the market could move toward oversupply, Wigner said Universal’s long-established sourcing network and deep local knowledge across its regions leave it well equipped to handle shifting conditions.
In the ingredients segment, Wigner said the Universal Ingredients business was able to keep revenue moving higher year to date despite a tougher operating environment. Softer customer demand and tariffs weighed on results, and quarterly performance was also pressured by higher fixed costs tied to recent investments. Even so, he said the focus remains on converting customer interest into actual orders and continuing to build out the company’s solutions-based offerings.
Wigner also pointed to steps taken to strengthen the company’s financial position. The refinancing and expansion of Universal’s credit facility in December 2025 improved liquidity and added flexibility, giving the company more room to pursue its strategic priorities. A meaningful increase in renewable electricity use across operations reflects concrete actions toward the company’s net-zero goals, while it continues to support farmers and strengthen its global supply chain.
Universal Corporation (NYSE:UVV) operates globally as an agricultural company, supplying products and customized solutions to meet evolving customer needs. Alongside its long-standing leaf tobacco business, the company continues to invest in growing its plant-based ingredients platform.
3. Pfizer Inc. (NYSE:PFE)
Dividend Yield as of February 9: 6.36%
Consecutive Years of Dividend Growth: 16 Years
Category: Dividend Contenders
Pfizer Inc. (NYSE:PFE) reported its Q4 2025 results on February 3. The company posted revenue of $17.56 billion, falling slightly by 1.1% from a year earlier. On the earnings call, Chairman and CEO Albert Bourla asserted that the company closed out 2025 on a strong footing, noting that execution throughout the year came in ahead of its financial commitments. Pfizer beat expectations on both revenue and adjusted diluted EPS and returned $9.8 billion to shareholders through dividends.
Looking to 2026, Bourla laid out the company’s main priorities, which include getting more value out of recent acquisitions, advancing Pfizer’s obesity pipeline, and expanding the use of artificial intelligence across the organization. He pointed to Seagen, Metsera, and Biohaven as some of the most important deals Pfizer has made in recent years, saying they have the potential to reshape the business. The focus now, he said, is on fully leveraging those portfolios and accelerating pipeline development.
Bourla also highlighted progress in Pfizer’s obesity program, noting encouraging results from the VESPER-3 study of its ultra-long-acting, next-generation injectable GLP-1 receptor agonist, previously known as MET-097i.
Chief Financial Officer David Denton added that full-year 2025 revenue came in at $62.6 billion, down from $63.6 billion the year before, reflecting a 2% operational decline. He emphasized that excluding COVID-19 products, operational revenue grew 6% for the year. Denton also said adjusted gross margins expanded to 76%, landing right where the company expected.
Pfizer Inc. (NYSE:PFE) operates as a research-driven global biopharmaceutical company, developing and commercializing medicines across oncology, primary care, and specialty areas for patients around the world.
2. Universal Health Realty Income Trust (NYSE:UHT)
Dividend Yield as of February 9: 7.04%
Consecutive Years of Dividend Growth: 42 Years
Category: Dividend Champions
Universal Health Realty Income Trust (NYSE:UHT) is built around a portfolio of medical office properties, but there are a couple of important nuances to keep in mind. Its largest tenant is Universal Health Services, which also serves as the REIT’s manager. That structure makes Universal Health Realty a controlled entity, and it naturally raises questions about whether decisions are made primarily for shareholders or for the manager. That said, the REIT’s long track record of steady dividend growth suggests investors’ interests have remained a priority.
The company has raised its dividend for 42 straight years, although the pace of growth has been modest. Historically, dividend increases have averaged about 1.5% annually. That level of growth may not appeal to investors focused on rapidly rising payouts. Still, the REIT’s relatively high yield can make it attractive for those who prioritize current income, where slow but dependable growth is less of a concern.
Looking at recent performance, results in the third quarter of 2025 were shaped by a handful of mostly one-time items compared with the same period in 2024. Net income benefited from a $275,000 gain, or about $0.02 per diluted share, tied to a settlement and release agreement related to one medical office property. That gain was largely offset by a combined net decline of $256,000, also roughly $0.02 per share, driven by lower income across several properties. The decline included about $900,000 in nonrecurring depreciation expense recorded during the quarter.
Universal Health Realty Income Trust (NYSE:UHT) is a healthcare-focused REIT that invests in a range of health and human service facilities. Its portfolio includes acute care hospitals, behavioral health hospitals, specialty facilities, freestanding emergency departments, childcare centers, and medical office buildings.
1. Community Healthcare Trust Incorporated (NYSE:CHCT)
Dividend Yield as of February 9: 10.54%
Consecutive Years of Dividend Growth: 11 Years
Category: Dividend Contenders
On January 20, Truist lifted its price recommendation on Community Healthcare Trust Incorporated (NYSE:CHCT) to $20 from $19. It maintained a Buy rating on the stock. The update came as part of Truist’s broader 2026 outlook for the REIT sector. While the firm remains Neutral on REITs overall for next year, it said fundamentals are starting to improve as new supply slows and demand stays steady for high-quality properties. That said, Truist noted that valuations still don’t look especially cheap. Within the sector, the firm is more constructive on healthcare, industrial, strip retail, gaming, and lodging REITs, takes a neutral stance on manufactured housing, multifamily, self-storage, and triple-net names, and remains more cautious on mall and office REITs.
Earlier, in December, Community Healthcare Trust announced it had completed a pair of transactions tied together through a tax-deferred exchange. The company sold an inpatient rehabilitation facility for $29.7 million on November 25, 2025, and followed that with the acquisition of a newly built, fully leased inpatient rehabilitation facility for $28.5 million on December 2, 2025. Both transactions were completed using a 1031 exchange structure.
David H. Dupuy, President and Chief Executive Officer of Community Healthcare Trust, made the following statement:
“We are excited to demonstrate the value within the portfolio as part of our previously announced capital recycling program. These transactions allowed us to reinvest sale proceeds at an approximately 140 basis points premium to our disposition cap rate, with no increase in leverage, while also reducing our largest tenant concentration.”
Community Healthcare Trust Incorporated (NYSE:CHCT) is a REIT focused on owning income-producing properties tied mainly to outpatient healthcare services across select markets in the United States. Its portfolio consists of medical real estate leased to hospitals, physicians, healthcare systems, and other healthcare service providers, giving the company steady rental income from essential healthcare facilities.
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