One of the most important facts to know about investing is that dividend-paying stocks outperform non-dividend-paying stocks over the long term. Real estate investment trusts, or REITs, are known to have higher than average yields, so let’s take a closer look at three that you could add to your portfolio today.
1. Morguard Real Estate Inv.: 5.8% yield
Morguard Real Estate Inv. (TSX:MRT.UN) owns a diversified real estate portfolio of 49 commercial properties in six Canadian provinces. It pays a monthly distribution of $0.08 per share, or $0.96 per share annually, giving its stock a 5.8% yield at today’s levels. Investors should also note that the company has maintained this monthly distribution since March 2012, and its consistent funds from operations could allow it to continue doing so for another three years at least.
2. CT Real Estate Investment Trust: 5.5% yield
CT Real Estate Investment Trust (TSX:CRT.UN) is a closed-end REIT comprised of more than 275 commercial properties across Canada. It pays a monthly distribution of $0.05525 per share, or $0.663 per share annually, which gives its stock a 5.5% yield at current levels. The company also increased its distribution by 2% in November as a result of its strong operational performance, and I think this could become an ongoing theme over the next several years.
3. Allied Properties Real Estate Investment: 4.05% yield
Allied Properties Real Estate Investment (TSX:AP.UN) owns over 140 office properties in urban markets across Canada. It pays a monthly distribution of $0.1216 per share, or $1.46 per share annually, giving its stock a 4.05% yield at today’s levels. It is also worth noting that the company has increased its annual distribution for four consecutive years, and its increased amount of funds from operations could allow this streak to continue for many years to come.
Which REIT should you buy today?
Morguard, CT, and Allied are three of the most attractive real estate investment trusts in the market. Foolish investors should take a closer look and strongly consider establishing positions in one of them right now.
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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.