Consider These 4 High-Yielding REITs

Real Estate


REITs have returned over 25% year-to-date (using the Vanguard Real Estate ETF) with an average dividend yield of 3.5%. While the yield appears modest, it’s actually a good bit higher than the 1.8% yield offered by the S&P 500.

Nonetheless, income investors are having a hard time seeking out higher yield alternatives, especially the stocks that are attractive based on their fundamentals.

There are plenty of high yielding picks that scream “sucker yield” – because of the dangerous payout ratios or elevated debt – however, the options are limited for the higher-quality names that deliver steady and reliable dividend growth.

In our quest for high yield and quality, I decided to screen the REIT universe for four companies that fit within the “intelligent REIT investing” box. By carefully filtering these picks from our so-called “Intelligent REIT Lab”, we provide readers with four quality high yielding REITs.

4 High Yield REITs

Tanger Outlets (SKT)

Dividend Yield: 9.10%

P/FFO: 6.8x

S&P Rating: BBB

Payout Ratio (FFO): 63%

YTD Total Return: -17.6%

Our Recommendation: Strong Buy

Iron Mountain (IRM)

Dividend Yield: 7.60%

P/AFFO: 10.6x

S&P Rating: BB-

Payout Ratio (AFFO): 81%

YTD Total Return: 4.8%

Our Recommendation: Strong Buy

Plymouth Industrial (PLYM)

Dividend Yield: 8.25%

P/FFO: 9.5x

S&P Rating: na

Payout Ratio (FFO): 70%

YTD Total Return: +53%

Our Recommendation: Strong Buy

Simon Property Group (SGP)

Dividend Yield: 5.32%

P/FFO: 12.8x

S&P Rating: A

Payout Ratio (FFO): 67%

YTD Total Return: -2.4%

Our Recommendation: Strong Buy

I own shares in SKT, IRM, PLYM, and SPG.

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