One of the attractions of real estate investment trusts (REITs) is that some pay extremely high dividends. How long this can continue – with the Fed set to raise rates – is another question, but, for now, it’s easy to find REITs paying 6%+ dividends.
Here are eight with enough average daily volume to qualify as liquid enough for large institutions to enter:
Simon Property Group Inc. (NYSE: SPG ) pays a dividend of 7.03%. The Indianapolis-based company is a retail-oriented business with properties in North America, Europe and Asia. Simon Property Group is a member of the Standard & Poor’s 100. In June 2022, analysts at Jeffries upgraded the REIT from “buy” to “hold” with a price target of $100.
Medical Properties Trust Inc. (NYSE: MPW ) pays a dividend of 8.47%. Healthcare facilities REITs just hit a new 2022 low – one of the reasons the yield looks so high. Headquartered in Birmingham, Alabama, Medical Properties Trust has been in the healthcare facilities industry since 2003 and went public on the NYSE in 2005.
Omega Healthcare Investors Inc. (NYSE: OHI ) pays a dividend of 8.80%. Headquartered in Hunt Valley, Maryland, the REIT operates senior care centers, skilled nursing facilities and assisted living facilities in the United States and the United Kingdom.
Vornado Realty Trust (NYSE: VNO ) pays a dividend of 8.06%. The REIT owns, manages and develops office and retail assets, primarily in New York. In May 2022, Piper Sandler downgraded the company from “neutral” to “underweight” with a price target cut from $44 to $35.
Sabra Health Care REIT Inc. (NASDAQ: SBRA ) pays a dividend of 8.83%. It is headquartered in Irvine, California and operates specialty, senior and specialty hospitals throughout the United States. At the end of June 2022, Jeffries cut the rating from “buy” to “hold” and lowered his price target from $15 to $14.
SL Green Realty Corp. (NYSE: SLG ) pays a dividend of 8.14%. The company says it is the largest owner of office properties in New York, including properties at One Madison Avenue, 100 Church Street and 100 Park Avenue. In September 2022, Truist analysts raised their rating on the REIT from “hold” to “buy” with a price target of $59.
Uniti Group Inc. (NASDAQ: UNIT ) pays a dividend of 6.94%. This REIT is hitting a 2022 low for the year. The Little Rock, Arkansas-based company is a communications infrastructure business that provides fiber optic and other wireless solutions for customers.
Hudson Pacific Properties Inc. (NYSE: HPP ) pays a dividend of 6.76%. This REIT hit lows for the year. The company owns and manages office and studio properties in the United States and Canada. In early September 2022, Morgan Stanley upgraded Hudson Pacific Properties from “underweight” to “equal weight” with a price target of $13.
Keep in mind that REITs can increase or decrease dividend payouts whenever management deems it necessary – there is no guarantee that the current payout level will continue. If the value of the underlying assets falls due to the Fed’s anti-inflationary moves, dividend cuts become more likely.
Next Up: This little-known REIT has produced double-digit annual returns over the past five years
Looking for high dividend yields without the price volatility?
Real estate is one of the most reliable sources of recurring passive income, but publicly traded REITs are just one option for accessing this income-producing asset class. Checkout Benzinga coverage of the private real estate market and find more ways to add cash flow to your portfolio without having to time the market or fall victim to wild price swings.
Not investment advice. For educational purposes only.
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