These High-Quality Stocks Yield Up To 4.3% With More Than A Decade of Dividend Growth (UDR, STAG, ARE)

Investors seeking steady income and long-term growth often turn to real estate investment trusts (REITs). 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 through dividends, often resulting in high yields.

Of the many REITs available in the market, three stand out for their high yields and impressive track records of dividend growth. Let's look at each of these REITs so you can determine if there's a place for one or more in your portfolio.

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UDR

UDR UDR is one of the largest owners and managers of apartment communities in the United States. As of June 30, its portfolio comprised 187 apartment communities containing 60,126 apartment homes, located across major markets, including Boston, Dallas, Denver, New York City Orlando, Philadelphia, Seattle and Washington, D.C.

According to company filings from September 2024, UDR pays a quarterly dividend of $0.425 per share, which results in an annualized dividend of $1.70 per share and gives its stock a 3.8% yield at the time of this writing.

In addition to sporting a high yield, UDR has consistently delivered dividend growth to its shareholders. It has raised its annual dividend payment for 14 consecutive years and its 1.2% hike in February has it on pace for 2024 to mark the 15th consecutive year with an increase.

See Also: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

Stag Industrial

Stag Industrial STAG is a leading owner and manager of industrial real estate. As of June 30, its portfolio comprised 573 buildings in 41 states, each containing approximately 114.1 million square feet. 

According to company filings from October 2024, Stag pays a monthly dividend of $0.123333 per share, which results in an annualized dividend of $1.48 per share and gives its stock a 3.8% yield at the time of this writing.

In addition to offering monthly income, Stag is a dividend-growth star, like UDR. Stag has raised its annual dividend payment for the last 12 years and its 0.7% increase in January puts it on pace for 2024 to mark the 13th consecutive year with an increase.

Alexandria Real Estate Equities, Inc.

Alexandria Real Estate Equities ARE is one of the nation's largest owners and managers of real estate leased to the life sciences industry. As of June 30, its portfolio comprised 408 properties containing approximately 42.1 million rentable square feet.

According to company filings from September 2024, Alexandria Real Estate Equities pays a quarterly dividend of $1.30 per share, which results in an annualized dividend of $5.20 per share and gives its stock a 4.3% yield at the time of this writing.

Like UDR and Stag, Alexandria Real Estate Equities is a consistent source of dividend growth. It has raised its annual dividend payment for 13 consecutive years and its 2.4% hike in June has it on pace for 2024 to mark the 14th consecutive year with an increase.

Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

Better Yields Than Some REITs?

The current interest rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through publicly-traded 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 August. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.