3 REITs With Yields up to 10.5% to Buy Today

Could your portfolio use a REIT? If so, Dream Office Real Estate Investment Trust (TSX:D.UN), Slate Retail REIT (TSX:SRT.UN), and Pure Industrial Real Estate Trust (TSX:AAR.UN) are great options.

| More on:
The Motley Fool

As intelligent 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 the highest yields on average. With these facts in mind, let’s take a look at three REITs with yields up to 10.5% that you could add to your portfolio today.

1. Dream Office Real Estate Investment Trust: 10.5% yield

Dream Office Real Estate Investment Trust (TSX:D.UN) owns 176 commercial properties in Canada, totaling approximately 24.1 million square feet of gross leasable area. It pays a monthly distribution of $0.18666 per share, or $2.24 per share annually, giving its stock a 10.5% yield at today’s levels.

Investors should also note that the company has maintained this monthly rate since May 2013, and its consistent funds from operations, including $273.1 million in fiscal 2014 and $140.8 million in the first half of fiscal 2015, could allow it to continue doing so for the next several years.

2. Slate Retail REIT: 7.3% yield

(All figures are in U.S. dollars)

Slate Retail REIT (TSX:SRT.UN) owns 64 grocery-anchored shopping malls located primarily across the top 50 U.S. metro markets. It pays a monthly distribution of $0.063 per share, or $0.756 per share annually, which gives its stock a 7.3% yield at current levels.

It is also worth noting that Slate increased its distribution by 5% in December 2014 as a result of its strong operational performance, and its increased amount of funds from operations, including 216.2% year-over-year growth to $14.3 million in the first half of fiscal 2015, could allow for another increase in December of this year.

3. Pure Industrial Real Estate Trust: 7% yield

Pure Industrial Real Estate Trust (TSX:AAR.UN) owns 173 industrial properties in North America, totaling approximately 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 7% yield at today’s levels.

Investors should also note that Pure Industrial has maintained this monthly rate since November 2012, but its increased amount of funds from operations, including 34.6% year-over-year growth to $32.7 million in the first half of fiscal 2015, could allow for a significant increase in the second half.

Which of these REITs should you buy today?

Dream Office, Slate Retail, and Pure Industrial are three of the most attractive investment options in the real estate industry today. Foolish investors should strongly consider initiating positions in one of them.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joseph Solitro has no position in any stocks mentioned.

More on Dividend Stocks

money cash dividends
Stocks for Beginners

Got $100? 2 Top Canadian Stocks to Buy and Hold

There are some great top Canadian stocks on the market to buy and hold right now. Here's a look at…

Read more »

online shopping
Dividend Stocks

Why Shopify Fell 1.83% Monday

Shopify (TSX:SHOP) crashed 1.83% Monday. Here's why.

Read more »

Two seniors float in a pool.
Dividend Stocks

Want to Build Wealth in the Stock Market With Next to No Effort? Start With This Type of Investment

Just buy an S&P 500 index ETF and chill.

Read more »

Chalk outline of two arrows pointing in opposite directions
Dividend Stocks

How to Make $1 Million in 10 Years Through Saving and Investing

Want to make $1 million in a decade? Follow these tips on how to cut back to save and invest…

Read more »

protect, safe, trust
Dividend Stocks

Beyond Canadian Bank Stocks: 3 Insurance Plays With Nice Dividends

Insurance stocks like Sun Life Financial (TSX:SLF) often have high yields.

Read more »

Supermarket aisle with empty green shopping cart
Dividend Stocks

TSX Consumer Staples in April 2024: The Best Stocks to Buy Right Now

Build a defensive stock portfolio with these consumer staples stocks.

Read more »

Female hand holding piggy bank. Save money and financial investment
Dividend Stocks

Emergency Fund 101: How Much Do Canadians Really Need?

If you need an emergency fund but have no idea where to start, we've got you. Along with an easy…

Read more »

A plant grows from coins.
Dividend Stocks

1 Not-So-Secret Way to Make Even More Money This Year

This is one of the most effective ways of saving for investments and could leave Canadians feeling as if they…

Read more »