Arguably the most important thing to know about investing is that dividend-paying stocks outperform non-dividend-paying stocks over the long term. It is for this reason that every long-term investor should own at least one dividend-paying stock, regardless of your age. With this in mind, let’s take a look at three real estate investment trusts, or REITs, with yields up to 7.1% that you could buy today.
1. Northern Property REIT: 7.1% yield
Northern Property REIT (TSX:NPR.UN) is the largest multi-family residential landlord in each of the Northwest Territories, Nunavut, and Newfoundland and Labrador, and has growing asset bases in Alberta, British Columbia, and Saskatchewan. It pays a monthly distribution of $0.1358 per share, or $1.6296 per share annually, giving its stock a 7.1% yield at today’s levels. The company has also increased its monthly rate in each of the last two years, and its increased amount of funds from operations, including 7% year-over-year growth to $16.57 million in the first quarter of fiscal 2015, could allow this streak to continue in 2015.
2. Plaza Retail Reit: 5.65% yield
Plaza Retail Reit (TSX:PLZ.UN) is one of eastern Canada’s leading retail property managers, with 306 properties totaling 6.7 million square feet of gross leasable area. It pays a monthly distribution of $0.0208 per share, or $0.25 per share annually, which gives its stock a 5.65% yield at current levels. It is also very important to note that the company has increased its annual distribution for 12 consecutive years, and its increased amount of funds from operations, including 36.2% year-over-year growth to $7.49 million in the first quarter of fiscal 2015, could allow this streak to continue for the foreseeable future.
3. Milestone Apartments Real Estate Invt Tr: 4.9% yield
Milestone Apartments Real Estate Invt Tr (TSX:MST.UN) is one of the largest multi-family residential landlords in the United States, with 60 properties that have a total of 19,980 leasable units. It pays a monthly distribution of $0.05417 per share, or $0.65 per share annually, giving its stock a 4.9% yield at today’s levels. It is also worth noting that Milestone has maintained this monthly rate since April 2013, its first full month of being a public corporation, but its increased amount of funds from operations, including 25.6% year-over-year growth to US$16.39 million in the first quarter of fiscal 2015, could allow for a significant increase in the very near future.
Which of these REITs should you buy today?
Northern Property, Plaza Retail, and Milestone Apartments are three of the most attractive real estate investment trusts in the market today. All Foolish investors should take a closer look and strongly consider beginning to scale in to positions in one of them.
