If you’re interested in earning monthly dividend income from a real estate investment trust, or REIT, then you’ve come to the right place. I’ve scoured the market and compiled a list of three of the industry’s best, so let’s take a closer look at each to determine which would fit best in your portfolio.
1. Dream Industrial Real Estate Investment Trust
Dream Industrial Real Estate Invest Trst (TSX:DIR.UN) is one of the largest pure-play industrial REITs in Canada with 220 primarily light industrial properties totaling approximately 16.9 million square feet of gross leasable area. It pays a monthly distribution of $0.05833 per share, or $0.70 per share annually, giving its stock a 9% yield at today’s levels.
Investors should also note that Dream Industrial has raised its annual distribution each of the last two years, and its increased amount of adjusted funds from operations, including 12.5% year-over-year growth to $47.78 million in the first nine months of fiscal 2015, could allow this streak to continue in 2015.
2. Morguard Real Estate Investment Trust
Morguard Real Estate Inv. (TSX:MRT.UN) owns a diversified portfolio of 50 retail, office, and industrial properties in Canada totaling approximately 8.8 million square feet of leasable space. It pays a monthly distribution of $0.08 per share, or $0.96 per share annually, giving its stock a 7% yield at today’s levels.
Investors should note that Morguard has maintained this monthly rate since March 2012, and its ample funds from operations, including an adjusted $57.87 million in the first nine months of fiscal 2015, could allow it to continue to do so going forward.
3. Canadian REIT
Canadian REIT (TSX:REF.UN) owns one of the largest portfolios of retail, industrial, and office properties in North America, with interests in 198 properties totaling approximately 33 million square feet. It pays a monthly distribution of $0.15 per share, or $1.80 per share annually, giving its stock a 4.4% yield at today’s levels.
It is also very important for investors to note that Canadian has raised its annual rate for 14 consecutive years, and its increased amount of funds from operations, including 8.5% year-over-year growth to $165.41 million in the first nine months of fiscal 2015, could allow this streak to continue in 2016.
Which of these REITs would fit best in your portfolio?
Dream Industrial, Morguard, and Canadian are three REITs that can provide the monthly income your portfolio needs, so take a closer look and strongly consider initiating positions in one of them in the trading sessions ahead.
Fool contributor Joseph Solitro has no position in any stocks mentioned.