One of the most well-known facts about investing is that dividend-paying stocks far outperform their non-dividend-paying counterparts over the long term. This means that every long-term investor should own at least one dividend-paying stock, and depending on your age, your investment goals, and your risk tolerance, maybe 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 5.6% that you should consider buying today.
1. RioCan Real Estate Investment Trust: 5.2% yield
RioCan Real Estate Investment Trust (TSX:REI.UN) is the largest REIT in Canada and the largest owner of shopping centres, with a portfolio of 353 retail properties containing more than 79 million square feet of leasable space, and another 15 properties under development. It pays a monthly dividend of $0.1175 per share, or $1.41 per share annually, giving its stock a 5.2% yield at today’s levels. The company has only increased its dividend once in the last three years, but its increased amount of funds from operations could allow for a significant increase in the second half of this year.
2. Calloway Real Estate Investment Trust: 5.6% yield
Calloway Real Estate Investment Trust (TSX:CWT.UN) is one of Canada’s largest owners and operators of retail space, with 121 mostly Wal-Mart-anchored retail centres and approximately 27.4 million square feet of leasable space. It pays a monthly dividend of $0.1334 per share, or $1.60 per share annually, which gives its stock a 5.6% yield at current levels. It is also worth noting that the company increased its dividend by 3.4% in October as a result of its increased funds from operations, and I think this could become an ongoing theme over the next several years.
3. Boardwalk REIT: 3.5% yield
Boardwalk REIT (TSX:BEI.UN) is one of the largest owners and operators of rental properties, with over 220 properties and over 34,000 residential units, totaling over 29 million square feet of rentable space. It pays a monthly dividend of $0.17 per share, or $2.04 per share annually, giving its stock a 3.5% yield at today’s levels. The company has also increased its annual dividend payment for three consecutive years, and its increased amount of funds from operations could allow this streak to continue for the next several years.
Which of these REITs should you buy today?
RioCan, Calloway, and Boardwalk are three of the top real estate investment trusts in the market today. All Foolish investors should take a closer look and strongly consider establishing positions in one of them.
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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.