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Real estate investment trusts (REITs) offer a compelling opportunity for income-seeking investors, but they are often overlooked. REITs own, operate, or finance income-generating real estate, allowing individuals to invest in various real estate types without direct ownership or management responsibilities.
REITs must distribute a large percentage of their taxable income to shareholders through dividends, often resulting in high yields. If you're an income-seeking investor, here are three high-quality REITs with track records of dividend growth you could invest in today.
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CubeSmart
CubeSmart (NYSE:CUBE) is the third-largest owner and operator of self-storage properties in the United States. As of June 30, its portfolio comprised 1,494 self-storage properties in 185 markets across 40 states and the District of Columbia.
CubeSmart currently pays a quarterly dividend of $0.51 per share, which equates to an annualized dividend of $2.04 per share, giving it a yield of about 3.8%.
In addition to sporting a high yield, CubeSmart has an extensive track record of dividend growth. It has raised its annual dividend payment for 14 consecutive years, with a 62% dividend growth rate over the last five years.
EastGroup Properties, Inc.
EastGroup Properties (NYSE:EGP) is a leading owner and manager of industrial properties in the United States. As of June 30, its portfolio comprised approximately 60.2 million square feet of premier distribution facilities across major Sunbelt markets in 12 states.
EastGroup currently pays a quarterly dividend of $1.40 per share, equating to an annualized dividend of $5.60 per share, giving it a yield of about 3% at the time of this writing.
EastGroup's latest dividend increase was 10% last month. In the news release, the company noted that it has paid dividends for 32 consecutive years, with 29 increases and no reductions, including increases in each of the last 13 years.
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A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.
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Universal Health Realty Income Trust
Universal Health Realty Income Trust (NYSE:UHT) owns and manages a portfolio of health care and human service-related facilities in the U.S. As of Aug. 1, its portfolio comprised 26 real estate investments or commitments located across 21 states, including acute care hospitals, behavioral health care facilities, rehabilitation hospitals, subacute care facilities, surgery centers, child care centers and medical office buildings.
UHT currently pays a quarterly dividend of $0.73 per share, equating to an annualized dividend of $2.92 per share, giving it a yield of about 6.4% at the time of this writing.
In addition to having the highest REIT yield discussed here, UHT has the longest dividend increase streak. It has raised its annual dividend payment for 37 consecutive years, with a 0.7% hike in June setting it on track for 2024 to mark the 38th consecutive year with an increase.
Better Yields Than Some REITs?
The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through publicly-traded REITs.
Arrived Homes, the Jeff Bezos-backed investment platform has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. It paid 8.1% in July. The best part? Unlike other private credit funds, this one has a minimum investment of only $100.
Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.
This article Buy These 3 Stocks Yielding Up To 6.6% For Income And Dividend Growth Right Now – Surprisingly Not On Many's Radar originally appeared on Benzinga.com