10 Best Dividend REIT Stocks with Impressive Yields in 2024
Updated January 10, 2024
Explore the best REIT dividend stocks, offering a consistent income source for investors.
Strategic selection is crucial, requiring careful consideration of factors such as financial health, historical performance and growth prospects.
Informed decisions can transform a modest investment into a substantial and dependable asset in your portfolio.
What Are the Best Dividend REIT Stocks?
This section examines the top 10 REIT stocks with high dividends, evaluating them based on performance, reliability and potential returns.
The goal is to offer insights for informed investment decisions with these top REIT dividend stocks.
1. American Tower Corp. (AMT)
American Tower Corp. stands tall as a global real estate investment trust (REIT) specializing in owning and operating communication towers worldwide.
Its towering presence supports wireless communication infrastructure, contributing significantly to the connectivity landscape.
Dividend history: AMT is one of the top REIT stocks with dividends, consistently rewarding investors with increased payouts. This reliability appeals to income-focused investors seeking stability and long-term returns.
Yield: Currently, the yield stands at 5.06%, offering a modest but reliable income stream.
How to buy: To partake in AMT's promising dividends, investors can acquire shares through a brokerage platform. Dividends, a quarterly affair, contribute to the steady allure of this investment.
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2. Crown Castle Inc. (CCI)
Crown Castle Inc. is a distinguished provider of shared communications infrastructure, specializing in cell towers and small cell networks. Its role in facilitating seamless communication underscores its importance in the modern digital landscape.
Dividend history: CCI has established a robust track record of dividend growth, reflecting the stability inherent in its business model. This consistent commitment to rewarding shareholders contributes to its appeal.
Yield: With a current yield of 5.72%, CCI presents an attractive proposition for investors seeking a blend of income and potential growth.
How to buy: Investors can engage with CCI's dividend story by acquiring shares through a brokerage. Quarterly dividends add a reliable income stream to the investment mix.
3. Public Storage (PSA)
Public Storage takes the spotlight as the world's largest self-storage real estate investment trust (REIT), offering storage solutions to individuals and businesses alike. Its extensive network of storage facilities positions it as a key player in the storage industry.
Dividend history: PSA boasts a consistent history of dividend payments, aligning with the expectations of income-oriented investors seeking reliability in their investment portfolios.
Yield: With a current yield of 3.9%, PSA provides a balanced offering of income with moderate implied growth.
How to buy: Investors can tap into PSA's dividend potential by acquiring shares through a brokerage. Quarterly dividends contribute to the steady income generated by this investment.
4. Simon Property Group Inc. (SPG)
Simon Property Group Inc. takes center stage as a major player in the real estate industry, focusing predominantly on shopping malls and retail properties. Its influence spans the retail landscape, making it a notable entity in the world of real estate.
Dividend history: SPG boasts a robust track record of dividend payments, demonstrating a commitment to returning value to its shareholders over time.
Yield: Currently offering a yield of 6.5%, SPG presents an attractive proposition for income-focused investors seeking lucrative returns.
How to buy: Interested investors can participate in SPG's dividend story by acquiring shares through a brokerage. Quarterly dividends contribute to the enticing income potential of this investment.
Visit Simon Property Group Inc. (SPG)
5. Realty Income Corp. (O)
Realty Income Corp., affectionately known as “The Monthly Dividend Company”, is one of the best monthly dividend REITs. It is a company specializing in retail and commercial real estate. Its unique monthly dividend distribution sets it apart in the world of income-generating investments.
Dividend history: Realty Income is renowned for its REIT stocks that pay monthly dividends, establishing a tradition of consistent increases that resonates with income-seeking investors.
Yield: With a current yield of 4.04%, O provides investors with a predictable and frequent income stream.
How to buy: Investors can engage with the monthly dividend charm of O by acquiring shares through a brokerage. This is one of the best REIT monthly dividend stocks providing a regular income generated by this investment.
6. Gaming and Leisure Properties Inc. (GLPI)
Gaming and Leisure Properties Inc. emerges as a real estate investment trust (REIT) focusing on owning, acquiring and leasing casino properties. Its niche in the gaming and leisure sector aligns with the entertainment-driven aspects of the real estate market.
Dividend history: GLPI has a commendable history of paying dividends, signaling a commitment to providing value to its shareholders over time.
Yield: Currently offering a yield of 6.39%, GLPI stands out as an attractive option for income-focused investors seeking higher returns from the best dividend paying REITs.
How to buy: Investors can participate in the gaming and leisure dividends by acquiring GLPI shares through a brokerage. Quarterly dividends contribute to the income generated by this investment.
Visit Gaming and Leisure Properties Inc. (GLPI)
7. Sun Communities Inc. (SUI)
Sun Communities Inc. is a real estate investment trust (REIT) specializing in the ownership, operation and development of manufactured housing and recreational vehicle communities. With a focus on creating vibrant, well-managed communities, Sun Communities plays a crucial role in providing affordable and desirable living options for a diverse range of residents.
Dividend history: SUI has a track record of delivering dividends to its investors, reflecting the stability and success of its community-oriented real estate ventures. The company's commitment to shareholder value is evident in its consistent dividend payments.
Yield: Presently boasting a yield of approximately 3.1%, Sun Communities offers investors a balance of income and growth potential. The company's stable cash flow and strategic investments contribute to its appeal.
How to buy: Investors interested in being a part of Sun Communities' vision for community-centric real estate can acquire shares through a brokerage platform. Dividends are typically distributed quarterly, providing a steady income stream.
Visit Sun Communities Inc. (SUI)
8. Extra Space Storage Inc. (EXR)
Extra Space Storage Inc. carves a niche as a self-storage real estate investment trust (REIT), owning, operating and managing storage properties across the US. Its presence addresses the growing demand for secure and accessible storage solutions.
Dividend history: EXR has a history of paying dividends, providing investors with a consistent income stream, albeit with a relatively modest yield.
Yield: With a current yield of 4.28%, EXR presents a viable option for income-focused investors seeking a blend of income and potential growth.
How to buy: Investors interested in the storage dividends of EXR can acquire shares through a brokerage. Quarterly dividends contribute to the income generated by this investment.
Visit Extra Space Storage Inc. (EXR)
9. Getty Realty Corp. (GTY)
Getty Realty Corp. stands out as a real estate investment trust (REIT) with a focus on owning, leasing and financing convenience store and gasoline station properties. Its strategic positioning in the retail landscape adds a distinctive flavor to its real estate portfolio.
Dividend history: GTY has a history of consistent dividend payments, aligning with the expectations of investors seeking a reliable income stream.
Yield: Currently offering a yield of 5.37%, GTY provides investors with a balanced mix of income and potential growth.
How to buy: Investors interested in the convenience store dividends of GTY can acquire shares through a brokerage. Quarterly dividends contribute to the income generated by this investment.
Visit Getty Realty Corp. (GTY)
10. Essex Property Trust (ESS)
Essex Property Trust Inc. positions itself as a real estate investment trust (REIT) specializing in owning and managing multifamily residential properties primarily on the West Coast. Its focus on the dynamic residential real estate market contributes to its relevance in the multifamily housing sector.
Dividend history: ESS has a history of paying dividends, with its performance closely tied to the trends and dynamics of the real estate market.
Yield: With a current yield of 4.11%, ESS provides investors with an avenue for income generation along with potential growth.
How to buy: Investors keen on the residential dividends of ESS can acquire shares through a brokerage. Quarterly dividends contribute to the income generated by this investment.
Visit Essex Property Trust (ESS)
What Are Real Estate Investment Trusts?
In the world of investments, Real Estate Investment Trusts (REITs) stand out as a unique opportunity.
Functioning like the mutual funds of the real estate world, REITs are companies that own, operate or finance income-generating real estate.
They essentially allow individuals to partake in real estate profits without the hassle of property ownership.
REITs operate on a pooling system, combining the capital of numerous investors.
It’s like a collective real estate venture where you, as an investor, stand to earn dividends without the headache of buying, managing or financing any properties yourself.
These financial instruments offer a steady income stream, making them an attractive option for investors seeking a balance between stability and potential growth.
Now, let's explore the best REIT stocks for dividends that could add a touch of solidity to your investment strategy this year.
How Do REITs Work?
Real Estate Investment Trusts (REITs) came into play in 1960 with the amendment to the Cigar Excise Tax Extension.
This legal shift opened the door for a broader investor base to engage in real estate by purchasing shares in commercial real estate portfolios.
Previously, this opportunity was exclusive to the wealthy, navigating through significant financial intermediaries.
REITs exhibit a broad spectrum of real estate holdings.
They span apartment complexes, data centers, healthcare facilities, hotels, office buildings, retail centers, self-storage and even infrastructure like fiber cables, cell towers and energy pipelines.
While some REITs focus on specific real estate sectors, others take a more varied approach, holding diverse and specialized properties.
Many REITs are publicly traded on major securities exchanges, making them as accessible as traditional stocks.
The process is straightforward – buy, sell, repeat – enhancing liquidity for investors.
The REIT with highest dividend payments has the potential to be a reliable source of income for investors.
What Are Dividend Stocks?
When investing in stocks and shares, you become a part owner of the business, typically holding a minuscule percentage.
There are two types of stocks: those that pay dividends and those that don't.
Dividend stocks make regular payments to shareholders based on the number of shares they own.
This predictable schedule offers shareholders a tangible return on their ownership.
Not all companies listed on the stock exchange pay dividends.
For example, Amazon is known for not paying dividends. Instead, it chooses to reinvest profits into business growth.
How Do Stock Dividends Work?
The decision on the amount and frequency of a company's dividend payments lies in the hands of its management.
They carefully balance the capital needed for business operations with what can be distributed to shareholders.
Dividends are typically paid out on a quarterly, semi-annual or annual basis. However, the best monthly REITs may be enticing options for those who want dividend payments each month.
The size of these payments serves as an indicator of the company's current performance and its future prospects.
However, this rule doesn't apply universally, as some companies opt not to pay dividends at all.
The process of crediting dividends to an investor's account is a collaborative effort between the company and a broker.
Usually, investors don’t need to take any action. The company and broker handle the logistics.
In some instances, investors might have the option to choose between receiving dividends in cash or in the form of additional stock.
What to Consider When Buying Stock Dividends to Invest In
There are numerous things that should be considered when investing in stock dividends.
These include:
1. Investment Amount
Evaluate the suitable investment amount by aligning it with your financial strategy. This particularly applies to cheap REITs with high dividends.
Consider your risk tolerance, portfolio diversification and overall investment objectives.
2. Dividend Frequency
Examine the frequency of dividend payments, especially if you are looking for REITs that pay monthly dividends.
Choose between a steady income stream with REITs that pay monthly dividends or those with occasional quarterly payouts based on your financial goals.
3. Dividend Value
Assess both the current and potential future value of the REIT with highest dividend payments.
Companies with a history of increasing dividends may offer sustained value over time.
4. Company Risk
Analyze the associated risk with the company issuing dividends.
Consider market conditions, industry stability and the financial health of the company to align with your risk tolerance.
5. Financial Performance
Scrutinize the historical financial performance of the company to find the highest paying dividend REITs.
These include revenue trends and profitability, to gauge the likelihood of consistent dividend payouts.
6. Future Prospects
Consider the future outlook of the company by evaluating its growth potential, industry trends and strategic initiatives.
This forward-looking perspective helps assess the long-term viability of your investment so you can find the best dividend REIT stocks for your investment goals.
Frequently Asked Questions
Determining the best REIT dividend stocks depends on various factors such as individual investment goals, risk tolerance and market conditions.
Popular choices for top dividend REITs often include well-established names like Realty Income Corporation (O) and Simon Property Group (SPG).
While high dividend REITs can offer attractive yields, it's essential to consider associated risks.
Cheap REITs with high dividends may indicate higher risk or a distressed market. Investors should evaluate the financial health of the REIT, its track record and alignment with their investment strategy.
Specific dividend rates can fluctuate and it's crucial to verify current information for the highest dividend yield REITs.
The decision to invest in REITs in 2024 depends on market conditions and individual financial goals.
Consulting with a financial advisor can provide personalized insights based on your investment strategy and risk tolerance.
The best-performing top dividend REITs over a decade can vary. Past performance does not guarantee future results when it comes to the current REIT with highest dividend payments.
For example, the best REITS paying monthly dividends can vary.
The 90% rule refers to the requirement for REITs to distribute at least 90% of their taxable income to shareholders to maintain their tax-advantaged status.
This rule ensures that most of the income generated by the REIT is passed on to investors.
The ideal allocation to REITs in a portfolio depends on individual investment goals, risk tolerance and market conditions.
Financial experts often suggest a diversified approach, with REIT allocations typically ranging from 5% to 15% of a well-balanced portfolio.
Final Thoughts
Investing in a REIT dividend stock presents a promising opportunity, offering a steady income stream for investors.
However, the key lies in making informed and strategic choices that align with individual financial objectives and risk tolerance.
Whether you’re looking for REIT stocks that pay monthly dividends or quarterly dividends, it's essential for investors to conduct thorough research, considering factors such as the financial health of the REIT, historical performance and future growth prospects.
By navigating the nuances of the market and selecting wisely, investors can unlock the potential for not just a small income, but a reliable and meaningful addition to their investment portfolio.
