As many investors have had burned into their brains, 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 in the market today. With this in mind, let’s take a look at three REITs with yields up to 9.3% that you could buy today.
1. BTB Real Estate Investment Trust: 9.3% yield
BTB Real Estate Investment Trust (TSX:BTB.UN) owns 73 commercial, office, and industrial properties in eastern Canada totaling 5.1 million square feet of gross leasable area. It pays a monthly distribution of $0.035 per share, or $0.42 per share annually, giving its stock a 9.3% yield at today’s levels. Investors should also note that the company increased its distribution by 5.1% in August 2014 as a result of its strong operational performance, and I think this could become an ongoing theme over the next several years.
2. American Hotel Income Properties REIT LP: 8.7% yield
American Hotel Income Properties REIT LP (TSX:HOT.UN) owns a portfolio of 61 hotels in 24 states in the United States. It pays a monthly distribution $0.075 per share, or $0.90 per share annually, which gives its stock an 8.7% yield at current levels. The company has maintained this monthly distribution since April 2013, but its increased amount of funds from operations could allow for an increase in the very near future.
3. Dream Global REIT: 8.2% yield
Dream Global REIT (TSX:DRG.UN) owns 237 commercial properties totaling 13.9 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 8.2% yield at today’s levels. It is also worth noting that the company has maintained this monthly distribution since September 2011, and its consistent funds from operations could allow it to continue doing so for the next several years.
Should you invest in one of these REITs today?
BTB, American Hotel, and Dream Global are three of the top investment opportunities in the real estate industry today. Foolish investors should take a closer look and strongly consider establishing positions in one of them.
