One of the most important things to know about investing is that dividend-paying stocks outperform non-dividend-paying stocks over the long term. It is for this reason that all long-term investors 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 7% that you could buy today.
1. Crombie Real Estate Investment Trust: 7% yield
Crombie Real Estate Investment Trust (TSX:CRR.UN) owns commercial real estate across Canada, with 255 properties totaling approximately 17.5 million square feet of gross leasable area. It pays a monthly distribution of $0.07417 per share, or $0.89 per share annually, giving its stock a 7% yield at today’s levels.
It is also worth noting that Crombie has maintained this monthly distribution since May 2008, but its increased amount of funds from operations, including 7.7% year-over-year growth to $64.93 million in the first half of fiscal 2015, could allow for a slight increase in the near future.
2. CT Real Estate Investment Trust: 5.45% yield
CT Real Estate Investment Trust (TSX:CRT.UN) owns commercial real estate across Canada, with 275 properties totaling approximately 21.3 million square feet of gross leasable area. It pays a monthly distribution of $0.05525 per share, or $0.663 per share annually, which gives its stock a 5.45% yield at current levels.
Investors should also note that the company increased its distribution by 2% in December 2014, and its increased amount of funds from operations, including 14.8% year-over-year growth to $74.12 million in the first half of fiscal 2015, could allow for another increase in December of this year.
3. Chartwell Retirement Residences: 4.5% yield
Chartwell Retirement Residences (TSX:CSH.UN) is one of the largest owners and operators of senior housing communities in North America. It pays a monthly distribution of $0.0459 per share, or $0.5508 per share annually, giving its stock a 4.5% yield at today’s levels.
Investors should also note that Chartwell increased its distribution by 2% in March, and its increased amount of funds from operations, including 11.2% year-over-year growth to $49.19 million in the first half of fiscal 2015, could allow for another increase in 2016.
Which of these REITs should you buy?
Crombie, CT, and Chartwell Retirement Residences are three of the most attractive investment options in the real estate investment trust industry. Foolish investors should take a closer look and consider establishing positions in one of them today.
