These Top REITs Offer Yields Of 4-6% And Dividend Growth

Real estate investment trusts (REITs) offer a compelling opportunity for income-seeking investors. REITs own, operate, or finance income-generating real estate, allowing individuals to invest in various real estate types without having direct ownership or management responsibilities. REITs must distribute a large percentage of their taxable income to shareholders as dividends, often resulting in high yields.

If you're an income-seeking investor, here are three high-yielding REITs with track records of dividend growth that you could invest in today.

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Essential Properties Realty Trust, Inc.

Essential Properties Realty Trust EPRT owns and manages primarily single-tenant properties leased on a long-term basis to companies operating in service-oriented and experience-based businesses such as car washes, quick-service restaurants, convenience stores, and early childhood education centers. As of June 30, its portfolio comprised 2,009 properties containing approximately 20.1 million square feet of rentable space.

Essential Properties currently pays a quarterly dividend of $0.29 per share, which equates to an annualized dividend of $1.16 per share and gives its stock a yield of about 4% at the time of this writing.

Essential Properties has also shown a strong dedication to growing its dividend since it came public. It has raised its annual dividend payment every year since its initial public offering in 2018, resulting in five consecutive years of increases. Its 1.8% hike in June has it on track for 2024 to mark the sixth consecutive year with an increase.

Centerspace

Centerspace CSR owns and manages apartment communities in the Midwest and Mountain West regions of the United States. As of June 30, its portfolio comprised 70 apartment communities containing 12,883 apartment homes across Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. 

Centerspace currently pays a quarterly dividend of $0.75 per share, which equates to an annualized dividend of $3.00 per share and gives its stock a yield of about 4.2% at the time of this writing.

Like Essential Properties, Centerspace has grown its dividend in recent years. It has raised its annual dividend payment for three consecutive years, and its 4.1% hike in February has it on pace for 2024 to mark the fourth consecutive year with an increase.

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Healthpeak Properties, Inc.

Healthpeak Properties DOC is a leading owner, operator, and developer of health care properties in the United States. As of June 30, its portfolio comprised 733 operating properties, including 579 outpatient medical centers and 120 labs.

Healthpeak currently pays a quarterly dividend of $0.30 per share, which equates to an annualized dividend of $1.20 per share and gives its stock a yield of about 5.6% at the time of this writing.

In addition to boasting a very high yield, Healthpeak is a reliable dividend payer. It has maintained its current quarterly dividend rate of $0.30 per share since February 2021, and its stable cash flow should allow it to continue to do so going forward.

Better Yields Than Some REITs?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through REITs.

Arrived Homes, the Jeff Bezos-backed investment platform has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. It paid 8.1% in July. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

As long-term rates go down and short-term rates stay high, there’s a unique chance to invest in fix & flip loans before yields drop. Check out Benzinga's favorite high-yield offerings. 

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