As Foolish investors know, dividend-paying stocks outperform non-dividend paying stocks over the long term, and real estate investment trusts, or REITs, have some of the highest yields on average. With these two facts in mind, let’s take a look at three REITs with yields up to 6.9% that you could add to your portfolio today.
1. Crombie Real Estate Investment Trust
Crombie Real Estate Investment Trust (TSX:CRR.UN) owns a portfolio of 260 retail and office properties across Canada, comprising of approximately 17.6 million square feet. It pays a monthly distribution of $0.07417 per share, or $0.89 per share annually, giving its stock a 6.9% yield at today’s levels.
Investors should note that Crombie has maintained this monthly rate since May 2008, and its consistent funds generated from operations, including $93.34 million in the first nine months of fiscal 2015, could allow it to continue to do so going forward.
2. Brookfield Canada Office Properties
Brookfield Canada Office Properties (TSX:BOX.UN) owns 26 “premier” office properties in the downtown cores of Toronto, Calgary, Ottawa, and Vancouver, comprising of approximately 20 million square feet. It pays a monthly distribution of $0.1033 per share, or $1.24 per share annually, giving its stock a 4.7% yield at today’s levels.
It is also very important for investors to note that Brookfield has raised its annual dividend payment for five consecutive years, but its decreased amount of adjusted funds from operations, including a 15.9% year-over-year decline to $81.8 million in the first nine months of fiscal 2015, may cause this streak to end in 2016.
3. Milestone Apartments Real Estate Investment Trust
Milestone Apartments Real Estate Invt Tr (TSX:MST.UN) owns 61 multi-family residential properties in the United States, comprising of approximately 19,908 leasable units. It pays a monthly distribution of $0.05417 per share, or $0.65 per share annually, giving its stock a 4.1% yield at today’s levels.
Investors should also note that Milestone has maintained this monthly rate since April 2013, which was its first full month as a public entity, but its increased amount of adjusted funds from operations, including 31.1% year-over-year growth to US$44.38 million in the first nine months of fiscal 2015, could allow for an increase within the next few months.
Which of these REITs would fit best in your portfolio?
Crombie, Brookfield, and Milestone Apartments are three of the most attractive investment options in the REIT industry today. All Foolish investors should take a closer look and strongly consider initiating positions in one of them.
