Retail real estate investment trusts (REITs) specialize in owning and managing retail properties, including shopping centers, malls, strip malls, and other retail spaces. Retail REITs generate revenue through leasing space to retailers, making them a popular choice for investors seeking income.
As is the case with all REITs, retail REITs are required to distribute a significant portion of their income to shareholders in the form of dividends, making them a popular choice for investors seeking income.
Here are two retail REITs with yields up to 5.5% that you could buy today.
Simon Property Group, Inc.
Simon Property Group SPG owns and operates more than 250 shopping centers across North America, Europe, and Asia, including properties in the top 25 U.S. markets based on population. It's properties are home to more than 3,000 market-leading brands, including Gap GPS, Victoria's Secret VSCO, Abercrombie & Fitch ANF, Foot Locker FL, American Eagle Outfitters AEO, Signet Jewelers SIG, and Dick's Sporting Goods DKS.
Simon currently pays a quarterly dividend of $1.90 per share, equating to an annualized dividend of $7.60 per share and giving its stock a yield of about 5.5% at the time of this writing. The company has also raised its dividend each of the last two years, and its hike in August 2023 has it on pace for 2024 to mark the third consecutive year with an increase.
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Tanger Inc.
Tanger SKT owns and operates a portfolio of 38 outlet centers and one open-air lifestyle center consisting of over 15 million square feet across tourist destinations and other high-traffic markets in 20 U.S. states and Canada. Its outlet centers have over 3,000 stores operated by more than 700 brand name companies, including Nike NKE, Ulta Beauty ULTA, Lululemon LULU, and Coach TPR.
Tanger currently pays a quarterly dividend of $0.26 per share, equating to an annualized dividend of $1.04 per share and giving its stock a yield of about 3.8% at the time of this writing. The company has also raised its annual dividend each of the last two years, and its 6.1% hike in October 2023 has it on pace for 2024 to mark the third consecutive year with an increase.
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