Collect Rent From Jeff Bezos' Amazon With These 3 Stocks

As e-commerce continues to reshape the global retail landscape, the demand for logistics and distribution centers has surged. Industrial real estate investment trusts (REITs), which specialize in owning and managing warehouses, fulfillment centers and distribution hubs, are positioned to be the top beneficiaries of this trend – especially those that have e-commerce powerhouses like Amazon.com AMZN as their tenants. 

In addition to their growth potential, REITs typically offer high dividend yields. Like all REITs, industrial REITs must distribute a significant portion of their income to shareholders as dividends.

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Let's look at three industrial REITs that name Amazon as one of their top tenants.

Stag Industrial

As of June 30, Stag Industrial STAG owns and manages a portfolio of 573 industrial buildings across 41 states, containing over 114 million square feet. Amazon is Stag's largest tenant, with six leases that equate to approximately 2.8% of its annualized base rent. Other notable tenants include Coca-Cola, FedEx, Tempur Sealy and DHL.

Stag currently pays a monthly dividend of $0.123333 per share, which equates to an annualized dividend of $1.48 per share. At the time of this writing, its stock yields approximately 3.75%. 

In addition to offering monthly income and a high yield, Stag offers dividend growth. It has raised its annual dividend payment every year since its initial public offering in 2011, resulting in 12 consecutive years of increases. Its 0.7% hike in January puts it on pace for 2024 to mark the 13th consecutive year with an increase.

Prologis

As of June 30, Prologis Inc. PLD owned ownership interests in more than 5,500 industrial properties worldwide, containing approximately 1.2 billion square feet, making it the largest REIT in the world. Amazon is Prologis' largest tenant, with about 45.7 million square feet leased, representing 5.1% of its net effective rent. Other notable tenants include Home Depot, FedEx, DHL and UPS.

Prologis currently pays a quarterly dividend of $0.96 per share, which equates to an annualized dividend of $3.84 per share. At the time of this writing, its stock yields approximately 3.1%.

Like Stag, Prologis has consistently grown its dividend. It has raised its annual dividend payment each of the last 10 years and its 10% hike in February puts it on track for 2024 to mark the 11th consecutive year with an increase.

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EastGroup Properties, Inc.

As of June 30, EastGroup Properties EGP owned and managed more than 500 industrial properties containing approximately 60.2 million square feet. With four leases, Amazon is EastGroup's largest tenant, representing approximately 1.8% of its annualized base rent. Other notable tenants include Starship Logistics, Trane and FedEx.

EastGroup currently pays a quarterly dividend of $1.27 per share, which equates to an annualized rate of $5.08 per share. At the time of this writing, its stock yields approximately 2.8%.

While EastGroup may have the lowest yield of the stocks discussed in this article, it has the most impressive track record of dividend payments. It has paid dividends for 31 consecutive years with 28 increases and no reductions, including increases in the last 12 years.

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.