3 REITs With Yields of 5-10% to Buy Today

Interested in REITs? If so, Dream Global REIT (TSX:DRG.UN), InnVest Reit Trust Units (TSX:INN.UN), and RioCan Real Estate Investment Trust (TSX:REI.UN) are great buys today.

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The Motley Fool

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 top investment options, so let’s take a closer look at each to determine which would fit best in your portfolio.

1. Dream Global REIT

Dream Global REIT (TSX:DRG.UN) owns 214 commercial properties in Germany, which total approximately 13.2 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 a 9.55% yield at today’s levels.

Investors should also note that Dream Global has maintained this rate since it first began paying a dividend in August 2011, and its ample funds from operations, including an adjusted $60.98 million in the first nine months of fiscal 2015, could allow it to continue to do so going forward.

2. InnVest Reit Trust Units

InnVest Reit Trust Units (TSX:INN.UN) has ownership interests in 111 hotels across Canada, which total over 15,000 rooms, and it has a 50% interest in Choice Hotels Canada Inc., one of the country’s largest franchisors of hotels. It pays a monthly distribution of $0.0333 per share, or $0.40 per share annually, giving its stock a 7.7% yield at today’s levels.

It is also important to note that InnVest has maintained this annual rate since 2012, but I think its increased amount of adjusted funds from operations, including 53.4% year-over-year growth to $55.46 million in the first nine months of fiscal 2015, could allow for a significant increase in 2016.

3. RioCan Real Estate Investment Trust

RioCan Real Estate Investment Trust (TSX:REI.UN) is Canada’s largest REIT. It has ownership interests in 354 retail properties containing approximately 78 million square feet, including 49 properties containing 13 million square feet in the United States. It pays a monthly distribution of $0.1175 per share, or $1.41 per share annually, giving its stock a 5.65% yield at today’s levels.

Investors must also note that RioCan has maintained this annual rate since 2013, but I think its increased amount of operating funds from operations, including 6.9% year-over-year growth to $414.6 million in the first nine months of fiscal 2015, could allow for a slight increase in 2016.

Is now the time for you to buy a REIT?

Dream Global, InnVest, and RioCan are three of the best investment options in the real estate investment trust industry today. All Foolish investors should take a closer look and strongly consider initiating positions in one of them before the end of the year.

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.

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