As savvy investors know, dividend-paying stocks generate much higher returns than non-dividend-paying stocks over the long term, and real estate investment trusts, or REITs, have some of the highest yields in the market today. With this in mind, let’s take a closer look at three REITs with yields up to 8.5% that you should consider buying today.
1. Dream Industrial Real Estate Investment Trust: 8.5% yield
Dream Industrial Real Estate Investment Trust (TSX:DIR.UN) is one of the largest pure-play industrial REITs in Canada, with a portfolio of 216 industrial buildings totaling 16.9 million square feet of gross leasable area. It pays a monthly distribution of $0.05833 per share, or $0.70 per share annually, giving its stock an 8.5% yield at today’s levels. The company has also increased its dividend twice in the last four years, and its increased amount of funds from operations could allow for another increase in the very near future.
2. Crombie Real Estate Investment Trust: 7.1% yield
Crombie Real Estate Investment Trust (TSX:CRR.UN) is one of the largest owners and operators of commercial properties in Canada, with a portfolio of 255 properties totaling 17.4 million square feet of gross leasable area. It pays a monthly distribution of $0.0742 per share, or $0.89 per share annually, giving its stock a 7.1% yield at current levels. Investors should also note that the company has maintained this monthly distribution since May 2008, and its consistent funds from operations could allow it to continue doing so for the next several years.
3. Interrent Real Estate Investment Trust: 3.5% yield
Interrent Real Estate Investment Trust (TSX:IIP.UN) is one of the largest owners of multi-residential properties in Canada, with 6,985 suites available for lease. It pays a monthly distribution of $0.0183 per share, or $0.2196 per share annually, giving its stock a 3.5% yield at today’s levels. A 3.5% yield may not seem impressive for a REIT, but it is very important to note that the company has increased its annual distribution for three consecutive years, and its increased amount of funds from operations could allow this streak to continue for another three years.
Should you buy one of these REITs today?
Dream Industrial, Crombie, and Interrent are three of the most attractive investment opportunities in the real estate industry today. All Foolish investors should take a closer look and strongly consider establishing positions in one of them.
