3 REITs That Pay Up to 12% in Dividends

SmartCentres Real Estate Investment Trust (TSX:SRU.UN) and these two other REITs are great options for investors that want to accumulate a lot of recurring income.

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For investors looking for good dividend stocks to put into their portfolios, REITs can be attractive options. They are relatively stable with lots of recurring sales and profits are usually consistent, and many pay monthly dividends. Here’s a look at three REITs that pay up to 12% that could be great additions today.

SmartCentres Real Estate Investment Trust (TSX:SRU.UN) is a brand that many consumers will likely recognize, as its shopping centres have been branded with the SmartCentres penguin. Often, the shopping centres also include Walmart, a key anchor in many of them.

The company has had no problems growing its sales over the years while also maintaining strong profits along the way. And while investors might be concerned about a stock that appears to be exposed to retailers, with many struggling in recent years, the company’s Penguin Pick-Up service shows that it’s looking to the future by focusing on online deliveries.  The service has been popular with customers, as it’s an easy way for people to get their online purchases.

SmartCentres isn’t a company that’s just sitting idle: it’s making good decisions for the future. With a dividend yield of 5.3%, it could be a great decision for investors to pick up the stock today.

RioCan Real Estate Investment Trust (REI.UN) is another well-known REIT that has significant diversification in its portfolio. With many different types of uses for its space along with locations in many different parts of the country, RioCan is a good, stable option to invest in.

However, it too is looking toward the future and reinventing how shopping malls look by adding residential properties into the mix. The move would help lessen the risk that comes with investing in retailers and would be a great option for risk-averse investors that might otherwise want to avoid REITs that could end up with many vacant spots to fill.

RioCan pays investors a solid dividend of over 5% and could provide a healthy stream of cash flow for your portfolio. Year to date, RioCan’s share price has risen by more than 12%, as it too could be a solid option for investors.

American Hotel Income Properties REIT LP (TSX:HOT.UN) is a bit of an outside-the-box option for investors. As the name suggests, its profile is focused on U.S. hotel properties. And with the U.S. economy still doing well and tourists continuing to flock there, it’s a sound business opportunity for investors.

The REIT has been showing strong growth over the years, with sales just about doubling since 2016. The bad news is that profits have been a bit light, but the company has been able to stay in the black. How it progresses in the future will determine the fate of its high-yielding payout.

At over 12% per year, American Hotel pays an astronomical dividend that’s denominated in U.S. dollars and could see a lot of variability even if the company decides not to change its payouts.

There’s definitely some risk here, but even if there is a cut to the payouts, there’s a lot of room for it continue to provide investors with a solid dividend, and a cut to the dividend may actually help the share price.

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 David Jagielski has no position in any of the stocks mentioned.

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