The Top 2 REITs for Dividend-Growth Investors

Are you a dividend-growth investor? If so, Canadian REIT (TSX:REF.UN) or Plaza Retail REIT (TSX:PLZ.UN) belong in your portfolio.

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The Motley Fool

If you’re a dividend-growth investor and are a fan of the high yields and monthly income that real estate investment trusts offer, then I’ve come across two stocks you will absolutely love. Let’s take a quick look at each to determine which belongs in your portfolio.

1. Canadian REIT

Canadian REIT (TSX:REF.UN) is one of the largest owners of commercial real estate in North America with a diversified portfolio of 198 retail, industrial, and office properties that total approximately 33 million square feet. It pays a monthly distribution of $0.15 per share, or $1.80 per share annually, which gives its stock a yield of approximately 4.6% at today’s levels.

Investors must also note that Canadian REIT has raised its annual distribution for 14 consecutive years, giving it the longest active streak for a public REIT in Canada, and its 2.9% increase in June 2015 has it on pace for 2016 to mark the 15th consecutive year with an increase.

2. Plaza Retail REIT

Plaza Retail REIT (TSX:PLZ.UN) is one of the largest developers and owners of retail properties in Canada with 306 properties in eight provinces that total approximately seven million square feet. It pays a monthly distribution of $0.02167 per share, or $0.26 per share annually, which gives its stock a yield of approximately 5.9% at today’s levels.

Investors must also note that Plaza Retail has raised its annual distribution for 12 consecutive years, giving it the second-longest active streak for a public REIT in Canada, and its 4% increase that took effect in January has it on pace for 2016 to mark the 13th consecutive year with an increase.

Which of these REITs belongs in your portfolio?

Canadian REIT and Plaza Retail REIT are the top dividend-growth stocks in the real estate investment trust industry today. All Foolish investors should take a closer look and strongly consider making one of them a core holding.

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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