Arguably, the most important thing to know about investing is that dividend-paying stocks outperform non-dividend-paying stocks over the long term. Every long-term investor should own at least one dividend-paying stock, and depending on your age, investment goals, and most importantly, your risk tolerance, maybe even a diversified portfolio full of them. With this in mind, let’s take a look at three high-yielding real estate investment trusts, or REITs, that you should consider buying today.
1. Cominar Real Estate Investment Trust: 8.2% yield
Cominar Real Estate Investment Trust (TSX:CUF.UN) is one of the largest diversified REITs in Canada and the largest commercial property owner in the province of Quebec. It pays a monthly distribution of $0.1225 per share, or $1.47 per share annually, giving its stock an 8.2% yield at today’s levels. The company has also increased its annual distribution for two consecutive years, and its increased amount of funds from operations could allow this streak to continue for the next several years.
2. Artis Real Estate Investment Trust: 7.7% yield
Artis Real Estate Investment Trust (TSX:AX.UN) is one of the largest owners of industrial, retail, and office space in North America. It pays a monthly distribution of $0.09 per share, or $1.08 per share annually, which gives its stock a 7.7% yield at current levels. It is also worth noting that the company has maintained this monthly distribution since June 2008, but its increased amount of funds from operations could allow for a significant increase in the very near future.
3. Chartwell Retirement Residences: 4.8% yield
Chartwell Retirement Residences (TSX:CSH.UN) is one of the largest owners and operators of senior housing communities in North America. It pays a monthly distribution of $0.0459 per share, or $0.5508 per share annually, giving its stock a 4.8% yield at today’s levels. Investors should also note that the company increased its distribution by 2% in March as a result of its strong operational performance, and I think this could become an ongoing theme over the next several years.
Which REIT should you buy today?
Cominar, Artis, and Chartwell are three of the most attractive real estate investment trusts in the market today. 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.