3 REITs With Yields up to 8.9% to Buy Today

Looking to buy a REIT? If so, Dream Global REIT (TSX:DRG.UN), H&R Real Estate Investment Trust (TSX:HR.UN), and Canadian Apartment Properties REIT (TSX:CAR.UN) are some of your best options.

| More on:
The Motley Fool

Arguably, the most important fact you need to know about investing is that dividend-paying stocks far outperform non-dividend-paying stocks over the long term. This means that every long-term investor should own at least one dividend-paying stock, and depending on your age, investment goals, and risk tolerance, maybe even a diversified portfolio full of them.

With this in mind, let’s take a look at three real estate investment trusts, or REITs, with yields up to 8.9% that you could buy today.

1. Dream Global REIT: 8.9% yield

Dream Global REIT (TSX:DRG.UN) is one of the largest owners of commercial real estate in Germany, with over 220 commercial properties comprising of approximately 13.4 million square feet of gross leasable area.

It pays a monthly distribution of $0.06667 per share, or $0.80 per share annually, giving its stock an 8.9% yield at today’s levels. It is also worth noting that the company has maintained this monthly rate since it first began paying dividends in August 2011, and its consistent funds from operations could allow it to continue doing so for the next several years.

2. H&R Real Estate Investment Trust: 6.6% yield

H&R Real Estate Investment Trust (TSX:HR.UN) is one of the largest open-ended real estate investment trusts in North America, with over 315 commercial, industrial, and residential properties comprising of approximately 43 million square feet of gross leasable area.

It pays a monthly distribution of $0.1125 per share, or $1.35 per share annually, which gives its stock a 6.6% yield at current levels. It is also worth noting that the company has maintained this monthly rate since May 2013, but its increased amount of funds from operations, including 4.6% year-over-year growth to $282.7 million in the first half of fiscal 2015, could allow for a slight increase in the very near future.

3. Canadian Apartment Properties REIT: 4.4% yield

Canadian Apartment Properties REIT (TSX:CAR.UN) is one of Canada’s largest residential landlords, with over 41,500 residential units available for lease.

It pays a monthly distribution of $0.10167 per share, or $1.22 per share annually, giving its stock a 4.4% yield at today’s levels. The company has also increased its distribution for four consecutive years, including a 3.4% increase earlier this year, and its increased amount of funds from operations, including 6% year-over-year growth to $95.38 million in the first half of fiscal 2015, could allow this streak to continue in 2016.

Which of these REITs belong in your portfolio?

Dream Global, H&R, and Canadian Apartment Properties are three of the most attractive investment options in the real estate industry today. All Foolish investors should strongly consider beginning to scale in to long-term positions in one of them.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joseph Solitro has no position in any stocks mentioned.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »