Investing in real estate investment trusts (REITs) that own and manage U.S. government properties offers a unique blend of stability and potential returns. These REITs lease space to federal agencies, ensuring a steady flow of rental income.
With long-term leases and low default risk, these REITs present a compelling option for investors seeking dependable income and diversification in their portfolios.
Let's check out two REITs that you could buy today.
Easterly Government Properties
Easterly Government Properties DEA owns and manages a portfolio of 93 properties in 26 states containing approximately 9.1 million leased square feet. Its properties are leased to 40 different government agencies, including the FBI, DEA, DoD, NPS, and SSA.
Easterly currently pays a quarterly dividend of $0.265 per share, equating to an annualized dividend of $1.06 per share, which gives its stock a yield of about 9% at the time of this writing.
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In addition to sporting a high yield, it's important to note that Easterly has raised its dividend five times since its initial public offering in 2015.
COPT Defense Properties
COPT Defense Properties CDP owns or has ownership interests in a portfolio of 193 properties containing 24.1 million square feet that support key U.S. Government defense installations and defense contractors. Its largest tenants include the U.S. Government, General Dynamics, Boeing, CACI International, and Booz Allen Hamilton.
COPT currently pays a quarterly dividend of $0.295 per share, equating to an annualized dividend of $1.18, which gives its stock a yield of about 4.9% at the time of this writing.
On top of its high yield, COPT has raised its quarterly dividend twice in the last two years, putting it on track for 2024 to mark the second consecutive year in which it has raised its annual dividend payment.
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