As e-commerce continues to reshape the global retail landscape, many investors are searching for ways to profit from the trend. One way to do so is by investing in real estate investment trusts (REITs) that own and manage logistics and distribution facilities leased by large e-commerce companies and the shipping providers that help deliver their goods.
In addition to their growth potential, REITs offer high dividend yields because they must distribute a significant portion of their taxable income to shareholders as dividends.
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If you're interested in investing in REITs that will continue to benefit from the rise of e-commerce, here are three you could consider.
Prologis
Prologis Inc. PLD is the world's largest REIT. As of June 30, it owned or had ownership interests in more than 5,500 industrial properties worldwide, containing approximately 1.2 billion square feet. Prologis' largest tenants include Amazon, 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 and gives its stock a yield of about 3% at the time of this writing.
In addition to offering a high yield, Prologis is a consistent source of dividend growth. It has raised its annual dividend payment for 10 consecutive years and its 10% hike in February has it on track for 2024 to mark the 11th consecutive year with an increase.
Stag Industrial
Stag Industrial STAG is a leading owner and manager of industrial real estate in the United States. As of June 30, its portfolio comprised 573 industrial buildings across 41 states, containing over 114 million square feet. Stag's largest tenants include Amazon, FedEx and DHL.
Stag currently pays a monthly dividend of $0.123333 per share, which equates to an annualized dividend of $1.48 per share and gives its stock a yield of about 3.7% at the time of this writing.
Not only does Stag offer monthly income and a high yield, but it's also a dividend-growth star. It has raised its annual dividend payment for 12 consecutive years and its 0.7% hike in January has it on track for 2024 to mark the 13th consecutive year with an increase.
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Postal Realty Trust
The United States Postal Service (USPS) will also continue to benefit from the e-commerce trend. Postal Realty Trust PSTL is the only publicly traded REIT focused on owning and leasing properties to the USPS. As of July 29, its portfolio comprised 1,616 properties with approximately 6.2 million interior square feet across 49 states and Puerto Rico.
Postal Realty currently pays a quarterly dividend of $0.24 per share, which equates to an annualized dividend of $0.96 per share and gives it a yield of about 6.5% at the time of this writing.
Postal Realty has also raised its annual dividend payment every year since its initial public offering in 2019, a streak of four consecutive years. Its 1.1% hike in February puts it on pace for 2024 to mark the fifth consecutive year with an increase.
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