Each of these five real estate investment trusts (REITs) currently pays a dividend of greater than 5%.
For those willing to accept the risks, that’s a better yield than that of the US Government 10-Year Treasury Note. Each REIT trades on the New York Stock Exchange, so plenty of information on these REITs is available from analysts at respected investment firms.
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CTO Realty Growth Inc. CTO pays a 7.0% dividend. The REIT is New York Stock Exchange traded with a relatively light average daily volume of 112,000 shares. The company owns and operates “high quality retail-based properties located primarily in higher growth markets in the United States,” according to its website. Part of CTO’s portfolio includes a 15% interest in Alpine Income Property Trust Inc. pinea net lease REIT.
Hudson Pacific Properties Inc. HPP pays a dividend of 6.8%. Headquartered in Los Angeles, the company owns and operates offices and properties in the media and technology industries. Founded in 2006, this REIT went public in 2010. It’s widely traded on the New York Stock Exchange with average daily volume of 2.27 million shares.
Medical Properties Trust Inc. MPW pays a 7.0% dividend. As the name suggests, this REIT focuses on healthcare facilities. The company owns hospitals in 32 states, 7 European countries, Australia and South America, according to its website. Medical Properties Trust is another REIT that is heavily traded: the average daily volume comes in at 6.9 million shares. The short float is a relatively high at 7.57%, which is possible fuel for a rally if shorts are forced to cover.
Piedmont Office Realty Trust Inc. PDM pays a dividend of 6.27%. Its focus is on sunbelt properties in southern growth markets such as Dallas, Atlanta and Orlando. That’s where this REIT owns, operates and manages “high quality buildings,” according to Piedmont’s website, in addition to similar properties in New York, Boston, Minneapolis and other cities. Average daily trading volume is 859,000 shares.
Spirit Realty Capital Inc. SRC pays a dividend of 5.96%. The Dallas-based company owns 2,039 retail and industrial properties in 49 states representing 35 different industries. Its top-10 tenants include Lifetime Fitness, ClubCorp, BJ’s Wholesale Club and Church’s Chicken, among others, according to Spirit Realty’s website.
Vornado Realty Trust VNO is paying a 7.15% dividend. This REIT is focused on New York City and especially Manhattan where it owns important retail locations. Vornado owns 20 million square feet of “prime office properties,” according to the website. This REIT is heavily traded with an average daily volume of 1.71 million shares.
These five REITs look interesting based on the properties they own, their management and the past steadiness of dividend payments, although past performance is no guarantee of future success. Interested investors would be wise to conduct further investigations before placing money in any of these REITs. Understanding the risks involved for the greater dividends received is an important factor with REITs.
Not investment advice. For educational purposes only.