Three Outstanding REIT Investments with Strong Yields, Ideal for Investing $1,000 Immediately
If you've got a grand to invest in dividend stocks, there's a trio of attractive options to consider. Let's delve into Rexford Industrial (REXR), Realty Income (O), and EPR Properties (EPR). Each caters to a distinct investor profile, offering intriguing propositions.
1. Rexford Industrial: A Haven for Dividend Growth Seekers
Rexford Industrial is your REIT if growth is your flavour. With a portfolio solely in the buoyant Southern California industrial market, this REIT provides an excellent focus – a significant turn-off for some but an attractive feature for those seeking a niche market with high barriers to entry.
The third quarter of 2024 saw a stunning 39% rise in rents on new leases, a testament to Rexford's impressive ability to drive up rents. Despite the industrial REIT's story losing favour, resulting in a 50% drop from its 2022 peak, the allure of a 4.3% dividend yield makes it an appealing option for growth-oriented investors.
2. Realty Income: A Reliable Income Titan
If a steady, dependable income is the target, Realty Income should be a strong contender. As the largest net lease REIT, it holds an extensive 15,400+ properties, encompassing the retail and industrial sectors across the USA and Europe. Realty Income's investment-grade balance sheet ensures a reliable income source, despite the modest excitement factor.
Realty Income's track record of raising its dividend annually for three decades is extraordinary. If you're all about dividend consistency, look no further. A yield of approximately 6% indicates potential returns hovering around the broader market's long-term average.
3. EPR Properties: The Exciting Turnaround Play
Seeking something more thrilling? EPR Properties, with a focus on experiential properties that include movie theaters and amusement parks, could be just what you need. When the pandemic struck, it suspended its dividend – an expected response given its tenant profiles' government-imposed closures. However, the halt only meant the intermission before the eventual resumption, with a juicy 7.6% yield now back on the table.
While movie theaters still account for a sizeable 36% of rental income, EPR Properties is deliberately diversifying its portfolio. With rental coverage improving, the company's turnaround story has begun to take shape, and whilst not back to pre-pandemic levels, the forward-looking FFO payout ratio of 66% suggests a sensible risk-reward balance for this exhilarating high-yielder.
High-Yield Choices to Suit Your Portfolio
Investing during expensive market times doesn't signify your search for lucrative ideas is in vain. Dividend sweethearts, Rexford Industrial, Realty Income, and EPR Properties cater to a variety of tastes, with a high-yield proposition for almost every kind of investor. Enjoy the prospect of digging deeper into your preferred high-yielder, as a grand might not be enough to satisfy your craving for these intriguing dividend plays.
- For individuals who are interested in long-term growth and have a focus on dividends, investing in Rexford Industrial can prove lucrative due to its high dividend yield and potential for rental income growth.
- If you prioritize a stable and reliable income stream, considering financing in Realty Income gives you access to a vast property portfolio and a consistent thirty-year history of annual dividend increases.
