Arguably, the most important fact you need to know about investing is that dividend-paying stocks far outperform non-dividend-paying stocks over the long term. This means that every long-term investor should own at least one dividend-paying stock, and depending on your age, investment goals, and risk tolerance, maybe even a diversified portfolio full of them.
With this in mind, let’s take a look at three real estate investment trusts, or REITs, with yields up to 8.9% that you could buy today.
1. Dream Global REIT: 8.9% yield
Dream Global REIT (TSX:DRG.UN) is one of the largest owners of commercial real estate in Germany, with over 220 commercial properties comprising of approximately 13.4 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 8.9% yield at today’s levels. It is also worth noting that the company has maintained this monthly rate since it first began paying dividends in August 2011, and its consistent funds from operations could allow it to continue doing so for the next several years.
2. H&R Real Estate Investment Trust: 6.6% yield
H&R Real Estate Investment Trust (TSX: HR.UN) is one of the largest open-ended real estate investment trusts in North America, with over 315 commercial, industrial, and residential properties comprising of approximately 43 million square feet of gross leasable area.
It pays a monthly distribution of $0.1125 per share, or $1.35 per share annually, which gives its stock a 6.6% yield at current levels. It is also worth noting that the company has maintained this monthly rate since May 2013, but its increased amount of funds from operations, including 4.6% year-over-year growth to $282.7 million in the first half of fiscal 2015, could allow for a slight increase in the very near future.
3. Canadian Apartment Properties REIT: 4.4% yield
Canadian Apartment Properties REIT (TSX: CAR.UN) is one of Canada’s largest residential landlords, with over 41,500 residential units available for lease.
It pays a monthly distribution of $0.10167 per share, or $1.22 per share annually, giving its stock a 4.4% yield at today’s levels. The company has also increased its distribution for four consecutive years, including a 3.4% increase earlier this year, and its increased amount of funds from operations, including 6% year-over-year growth to $95.38 million in the first half of fiscal 2015, could allow this streak to continue in 2016.
Which of these REITs belong in your portfolio?
Dream Global, H&R, and Canadian Apartment Properties are three of the most attractive investment options in the real estate industry today. All Foolish investors should strongly consider beginning to scale in to long-term positions in one of them.
