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Investing in Real Estate Investment Trust or REIT. Visionary business man investing in stocks.
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REITs have returned over 25% year-to-date (using the Vanguard Real Estate ETF) with an average dividend yield of 3.5%. While the yield appears modest, it’s actually a good bit higher than the 1.8% yield offered by the S&P 500.
Nonetheless, income investors are having a hard time seeking out higher yield alternatives, especially the stocks that are attractive based on their fundamentals.
There are plenty of high yielding picks that scream “sucker yield” – because of the dangerous payout ratios or elevated debt – however, the options are limited for the higher-quality names that deliver steady and reliable dividend growth.
In our quest for high yield and quality, I decided to screen the REIT universe for four companies that fit within the “intelligent REIT investing” box. By carefully filtering these picks from our so-called “Intelligent REIT Lab”, we provide readers with four quality high yielding REITs.
4 High Yield REITs
Tanger Outlets (SKT)
Dividend Yield: 9.10%
P/FFO: 6.8x
S&P Rating: BBB
Payout Ratio (FFO): 63%
YTD Total Return: -17.6%
Our Recommendation: Strong Buy
Iron Mountain (IRM)
Dividend Yield: 7.60%
P/AFFO: 10.6x
S&P Rating: BB-
Payout Ratio (AFFO): 81%
YTD Total Return: 4.8%
Our Recommendation: Strong Buy
Plymouth Industrial (PLYM)
Dividend Yield: 8.25%
P/FFO: 9.5x
S&P Rating: na
Payout Ratio (FFO): 70%
YTD Total Return: +53%
Our Recommendation: Strong Buy
Simon Property Group (SGP)
Dividend Yield: 5.32%
P/FFO: 12.8x
S&P Rating: A
Payout Ratio (FFO): 67%
YTD Total Return: -2.4%
Our Recommendation: Strong Buy
I own shares in SKT, IRM, PLYM, and SPG.
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Investing in Real Estate Investment Trust or REIT. Visionary business man investing in stocks.
Getty
REITs have returned over 25% year-to-date (using the Vanguard Real Estate ETF) with an average dividend yield of 3.5%. While the yield appears modest, it’s actually a good bit higher than the 1.8% yield offered by the S&P 500.
Nonetheless, income investors are having a hard time seeking out higher yield alternatives, especially the stocks that are attractive based on their fundamentals.
There are plenty of high yielding picks that scream “sucker yield” – because of the dangerous payout ratios or elevated debt – however, the options are limited for the higher-quality names that deliver steady and reliable dividend growth.
In our quest for high yield and quality, I decided to screen the REIT universe for four companies that fit within the “intelligent REIT investing” box. By carefully filtering these picks from our so-called “Intelligent REIT Lab”, we provide readers with four quality high yielding REITs.
4 High Yield REITs
Tanger Outlets (SKT)
Dividend Yield: 9.10%
P/FFO: 6.8x
S&P Rating: BBB
Payout Ratio (FFO): 63%
YTD Total Return: -17.6%
Our Recommendation: Strong Buy
Source: FAST Graphs
Iron Mountain (IRM)
Dividend Yield: 7.60%
P/AFFO: 10.6x
S&P Rating: BB-
Payout Ratio (AFFO): 81%
YTD Total Return: 4.8%
Our Recommendation: Strong Buy
Source: FAST Graphs
Plymouth Industrial (PLYM)
Dividend Yield: 8.25%
P/FFO: 9.5x
S&P Rating: na
Payout Ratio (FFO): 70%
YTD Total Return: +53%
Our Recommendation: Strong Buy
Source: FAST Graphs
Simon Property Group (SGP)
Dividend Yield: 5.32%
P/FFO: 12.8x
S&P Rating: A
Payout Ratio (FFO): 67%
YTD Total Return: -2.4%
Our Recommendation: Strong Buy
Source: FAST Graphs
I own shares in SKT, IRM, PLYM, and SPG.