REITs that pay Monthly Dividends
Realty Income is known as the "The Monthly Dividend Company" is among the most popular Dividend stock for Investors. Realty Income has declared 649 consecutive monthly dividends and are a member of the S&P 500 Dividend Aristocrats index for having increased its dividend for the last 29 consecutive years. Realty Income focuses on acquiring and managing high-quality, single-unit freestanding commercial properties under long-term, net lease agreements leased to leading global operators. By curating an extensive and highly diversified portfolio, Realty Income generates reliable revenue that supports our increasing monthly dividends and strategic growth initiatives. Reality Income's currently portfolio includes approximately 15,450 commercial properties that are leased to over 1,500 different clients who operate in more than 90 separate industries throughout all 50 U.S. states, the U.K., and six other countries in Europe.
Chatham Lodging Trust manages nearly 40 premium brand hotels, including brands such as Hilton Garden Inn, Hyatt Place and Residence Inn, across 15 U.S. states. Chatham looks to take advantage of properties where demand currently outpaces supply, paying particularly close attention to those that might be undercapitalized. Chatham does more than just own hotels. It also takes an active management approach by rebranding, revitalizing or redeveloping properties that add value for both the hotel and shareholders.
EPR Properties specializes in education and entertainment-related venues, such as charter schools, movie theaters, water parks, ski resorts and golf courses. EPR focuses on what it calls its Five-Star Investment Criteria, which looks at value, opportunity, execution, economics and position. To summarize, EPR looks for properties with a sustained competitive advantage, that can obtain a market-dominant position and can deliver an immediate return on investment. EPR switched from a quarterly payment schedule to a monthly one in 2013, and has continued to do so ever since.
LTC Properties manages more than 200 different healthcare facilities focused on senior care. These include skilled nursing centers, assisted living communities and memory care facilities. According to its most recent quarterly report, LTC looks for five characteristics in a potential property – strong cash flows that produce an annual yield of 7-9%, experienced operators, defendable market positions, quality building structures and a favorable regulatory environment. Since its launch in 1992, LTC has a presence in over half the country, and continues to expand.
Stag Industrial is a REIT focused on single-tenant industrial properties, such as warehouses, distribution centers, manufacturing facilities and office buildings. Stag typically focuses on cheap, out of favor properties that it can improve upon to drive up lease values. By targeting this type of property, Stag is heavily dependent upon the success of the industrial retail and manufacturing spaces. According to the company, there is a significant opportunity to improve its market position in this space, given the low individual correlation of such assets, relatively lower capex requirement and the low average investment size that improves acquisition potential.
In Closing
REITs can offer attractive yields, but they are highly sensitive to economic conditions. During the financial crisis, REIT values plummeted as defaults surged, income streams dwindled, and properties sat vacant. Additionally, REITs are influenced by interest rate fluctuations, with prices typically moving inversely to interest rates. However, the impact varies across sectors. This sensitivity is particularly relevant in today's environment of elevated interest rates, making it crucial to monitor closely.
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Types of REITs
Public non-traded REITs are also open to all investors but don't trade on stock exchanges. Investors can purchase public non-traded REITs through their financial advisor or on online portals sometimes known as real estate crowdfunding platforms. Public non-traded REITs also must register with the SEC and provide audited financial information. Click here to learn about 16 types of REITs.
Getting Rich with REIT Investing: A Beginner's Guide
Real estate investing isn't for everyone. And not everyone who invests in real estate ends up making millions. It's a hard truth, but that is what makes real estate investment trusts (REITs) different. Not only do REITs allow you to own a piece of the real estate market without actually buying property, but they can also provide you with real passive income in the form of dividends. America's wealthy elite are picking up real estate for cents on the dollar with REITs and they are getting richer while millions of people continue to spend their life savings on down payments for homes and investment properties. But REIT investing doesn't have to be a secret for the elite class. Click here to fast delivery.