As wise investors know, dividend-paying stocks generate higher returns than 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 closer look at three REITs with yields up to 8.8% that you should consider buying today.
1. Agellan Commercial Real Estate Invtmt TR: 8.8% yield
Agellan Commercial Real Estate Invtmt TR (TSX:ACR.UN) owns 32 commercial properties in North America, totaling 4.7 million square feet of gross leasable area. It pays a monthly distribution of $0.06458 per share, or $0.775 per share annually, giving its stock an 8.8% yield at today’s levels. It is also worth noting that the company has maintained this monthly distribution since it went public in October 2013, but its increased amount of adjusted funds from operations, including 24% year-over-year growth to $20 million in fiscal 2014 and 11% year-over-year growth to $5.57 million in the first quarter of fiscal 2015, could allow for an increase in the very near future.
2. InnVest Reit Trust Units: 8.1% yield
InnVest Reit Trust Units (TSX:INN.UN) owns one of Canada’s largest hotel portfolios comprising of 109 hotel properties with approximately 15,000 guest rooms. It pays a monthly distribution of $0.0333 per share, or $0.3996 per share annually, which gives its stock an 8.1% yield at current levels. The company has maintained this annual distribution since fiscal 2012, and its consistent funds from operations, including an adjusted $44.62 million in fiscal 2012, $46.15 million in fiscal 2013 and $44.35 million in fiscal 2014, could allow it to continue doing so for the next several years.
3. Pure Industrial Real Estate Trust: 6.7% yield
Pure Industrial Real Estate Trust (TSX:AAR.UN) is one of the largest owners of industrial properties in North America with 173 properties totaling 17.4 million square feet of gross leasable area. It pays a monthly distribution of $0.026 per share, or $0.312 per share annually, giving its stock a 6.7% yield at today’s levels. Investors should also note that the company has maintained this annual rate since fiscal 2013, but its increased amount of funds from operations, including 23.4% year-over-year growth to $54.9 million in fiscal 2014 and 31.3% year-over-year growth to $16.8 million in the fiscal quarter of fiscal 2015, could allow for an increase in the second half of this year.
Could your portfolio use an income-generating REIT?
Agellan, InnVest, and Pure Industrial are three of the most attractive real estate investment trusts in the market. All Foolish investors should take a closer look and strongly consider establishing positions in one of them today.
