These Top REITs Just Hiked Their Dividends By Up To 8.9%

In a positive development for investors, two high-quality real estate investment trusts (REITs) announced dividend increases last week. 

Investors should take note of REITs that are increasing their dividends because this typically indicates strong financial health and stable cash flow, which is how you find stocks that can provide reliable income streams over the long term.

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Let’s examine each REIT to see if there's room in your portfolio for one or both.

Federal Realty Investment Trust

Federal Realty Investment Trust FRT is a leading owner and manager of retail and mixed-use properties in the United States. As of June 30, its portfolio comprises 102 properties containing approximately 27 million square feet. Its properties are in major markets, including Boston, Chicago, Miami, New York City, Philadelphia, and Washington, D.C.

In its second-quarter earnings release on Aug. 1, Federal Realty raised its dividend by 0.9%. 

“Another record quarter for Federal Realty, starting with funds from operations per share of $1.69, to continued record leasing volume, to furthering our REIT industry record with the 57th consecutive year of increased common dividends,” Federal Realty CEO Donald C. Wood said in a statement.

Federal Realty now pays a quarterly dividend of $1.10 per share, equating to an annualized dividend of $4.40 per share and giving its stock a yield of about 3.9% at this time.

As its CEO mentioned, this dividend increase marked the 57th consecutive year in which Federal Realty has raised its annual dividend payment, the longest consecutive record in the entire REIT industry.

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Terreno Realty Corporation

Terreno Realty Corporation TRNO is a leading owner and manager of industrial properties in the United States. As of June 30, its portfolio comprised 292 buildings, excluding nine properties under development or redevelopment, containing approximately 18.1 million square feet. 

In its second-quarter earnings release on Aug. 7, Terreno raised its dividend by 8.9%. It now pays a quarterly dividend of $0.49 per share, equating to an annualized dividend of $1.96 per share and giving its stock a yield of about 2.9% at the time of this writing.

Terreno has consistently grown its dividend, making it one of the industry’s most attractive investment options. It has now raised its dividend every year since its initial public offering in 2011, which means 2024 will mark the 13th consecutive year with an increase.

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.