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Top Picks for High-Yield Dividend Stocks

By Jason Hall and Brian Withers – Oct 24, 2021 at 9:15AM

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Digital Realty Trust, CareTrust REIT, and Realty Income are some of the best stocks to invest in right now.

Real estate investment trusts (REITs) can be an excellent long-term addition to your portfolio, but there are many out there to choose from. How to pick the right one? In this video clip from "The 5," recorded on Sept. 24, Fool.com contributor Jason Hall reviews a list of REITs he thinks are smart investments right now. 

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Jason Hall: ROIC, Retail Opportunity Investments Corporation, this is a West Coast based Real Estate Investment Trust that focuses on strip malls. They're really good at finding ones that have anchor tenants like pharmacy, grocery that are relatively e-commerce resistant, therein, high-wealth areas.

Digital Realty Trust, ticker DLR, Brian Withers, it might sound familiar to you. This is a really interesting data center. REITs, one of the things I like about them versus some of the others is they own most of their data centers and some of the other larger ones. Actually, they lease the space and then they lease space in the data center to the users, so they don't participate as much. There's some benefits in terms of debt model there, but I prefer Digital Realty Trust because they tend to own all of their underlying assets.

STAG, ticker S-T-A-G Stag Industrial. This is a large industrial REIT that focuses on things like building distribution centers, small-scale manufacturing, logistics type operations, you think about more companies looking to in-source, you think about domestic manufacturing, you think about e-commerce, logistics. STAG Industrial is a great company to own.

CareTrust REIT, ticker CTR-E. This is my favorites investment and other real estate investment trust, is my favorite investment in the trend of the aging baby boomers. About 10,000 baby boomers a day turn 65, that's going to continue for the next nine years. There's going to be 80 million baby boomers in the United States. There are going to be 80 million Americans by 2020-2029 that are 65 or older. There will be 40 million Americans that are 80 year older. We simply measure double from 2010. We simply don't have enough of the right housing, the right care facilities, a care facility is a small play on that opportunity.

Realty Income, ticker O. Tax itself is the monthly dividend company. Dividend Aristocrats increases dividend every quarter [laughs] for like 26 years, it's an incredible story there.

Let's see, EPR, so this is another interesting REIT that I like a lot. Peloton, this is one. This is not a REIT, it's not a high yield start.

Brian Withers: It's not a dividends stuff.

Jason Hall: I promised Jon Quast I was going to buy some, he convinced me on another real estate. I entered that position, and there's one more that I'm not going to mention. I'm going to be selfish, I'm not going to mention it, because I'm thinking about buying more on Monday.

Jason Hall owns shares of CareTrust REIT, Digital Realty Trust, EPR Properties, Peloton Interactive, Realty Income, Retail Opportunity Investments, and Stag Industrial. The Motley Fool owns shares of and recommends Digital Realty Trust, Peloton Interactive, Retail Opportunity Investments, and Stag Industrial. The Motley Fool recommends EPR Properties. The Motley Fool has a disclosure policy.

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