Buy These REITs Yielding 3-6% For Passive Monthly Income
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Real estate investment trusts (REITs) offer compelling opportunities for investors looking to supplement their monthly income. REITs own, operate, or finance income-generating real estate, allowing individuals to invest in various real estate types without having direct ownership or management responsibilities.
REITs must also distribute a large percentage of their taxable income to shareholders as dividends, often resulting in hefty yields.
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If you're an income-seeking investor, here are three high-yielding REITs that pay monthly dividends.
Phillips Edison & Company, Inc.
Phillips Edison & Company (NASDAQ:PECO) is a leading owner and operator of grocery-anchored neighborhood shopping centers in the United States. As of June 30, its portfolio comprised 286 properties containing approximately 32.6 million square feet of gross leasable area.
Phillips Edison currently pays a monthly distribution of $0.0975 per share, which equates to an annualized distribution of $1.17 per share and gives its stock a yield of about 3.4% at the time of this writing.
In addition to offering a high yield, Phillips Edison has shown a strong dedication to growing its dividend since its initial public offering in 2021. It has raised its annual dividend payment each of the last two years, and its 4.5% hike last September has it on pace for 2024 to mark the third consecutive year with an increase.
Realty Income
Realty Income (NYSE:O) is one of the world's largest REITs. As of June 30, its portfolio comprised 15,450 properties containing approximately 335 million square feet. Its properties are leased to more than 1,500 different clients across 90 separate industries.
Realty Income currently pays a monthly dividend of $0.263, equating to an annualized dividend of $3.156 per share and giving its stock a yield of about 5.2% at the time of this writing.
Realty Income is one of the top dividend-growth stocks in the REIT industry. It has raised its annual dividend payment for 29 consecutive years, including 107 consecutive quarterly increases, and its recent hikes have it on track for 2024 to mark the 30th consecutive year with an increase.
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Stag Industrial
Stag Industrial (NYSE:STAG) is one of the largest owners and operators of industrial properties in the United States. As of June 30, its portfolio comprised 573 industrial buildings across 41 states containing approximately 114.1 million square feet.
Stag currently pays a monthly dividend of $0.123333 per share, which equates to an annualized dividend of $1.48 per share and gives its stock a yield of about 3.7% at the time of this writing.
Like Phillips Edison and Realty Income, Stag consistently delivers dividend increases for its shareholders. It has raised its annual dividend payment every year since its 2011 initial public offering, so its 0.7% hike in January has it on track for 2024 to mark the 13th 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 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.
As long-term rates go down and short-term rates stay high, there’s a unique chance to invest in fix & flip loans before yields drop. Check out Benzinga's favorite high-yield offerings.
This article Buy These REITs Yielding 3-6% For Passive Monthly Income originally appeared on Benzinga.com