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15 Best REITs to Invest in Right Now

By Liz Brumer-Smith - Aug 24, 2022 at 8:36AM
Happy person in vest celebrates while looking at laptop.

15 Best REITs to Invest in Right Now

Cream of the crop

A big part of successful long-term investing is buying shares in the best stocks. There are a lot of reasons something could be the best. Whether it be the best buy at a discount right now, the best dividend yield for your money, or the best growth opportunities for the long term. All 15 of these real estate investment trusts (REITs) are the best at something.

If you want to supercharge your earnings, here's why you'll want to consider adding these REITs to your portfolio.

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Apartment building under a blue sky.

1. Camden Property Trust

Investing almost exclusively in multifamily housing across the fast-growing Sun Belt region of the United States, Camden Property Trust (NYSE:CPT) is one of the best residential REITs to invest in today.

Of all Sun Belt-focused multifamily REITs, Camden Property Trust is currently leading the way for rent growth and occupancy. The stock is down but barely sitting just 2% lower than a year ago. Its dividend yield of just under 2.4% isn't a screaming deal, but its recent track record and exposure to this red-hot industry make it a fantastic investment today.

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A person hands a credit card to a clerk in a store.

2. Agree Realty

Agree Realty (NYSE:ADC) acquires, develops, and leases over 1,600 retail properties across 48 states. This retail REIT has become well known for its reliability. It has not only raised its dividend 17 times over the past 11 years but also outperforms the S&P 500. Today, it pays an attractive 3.4% dividend yield, making it a great stock for those seeking steady dividend income.

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Retail commercial property with brick exterior.

3. Realty Income

Realty Income (NYSE:O) is the largest net lease REIT in the industry. With an interest in over 11,400 properties, it's an absolute giant with a fantastic dividend track record to boot. The REIT pays a 4% yield and is a Dividend Aristocrat, meaning it raised its dividend for over 25 years.

Its diverse tenant mix and A credit rating make it a no-brainer buy if you're looking for reliable dividend income paid monthly.

ALSO READ: Why I'm Never Selling Realty Income

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People working in a data center.

4. Digital Realty Trust

One of the best ways to gain exposure to the fast-growing data center industry is by investing in Digital Realty Trust (NYSE:DLR). The company owns over 290 data center facilities in 26 countries, making it one of the leading data center providers in the world.

The company's earnings have remained healthy despite being down 38% this year. Plus, it provided a 10% annualized return over the past decade with bountiful growth opportunities for the future. Thankfully, its beaten-down share price has pushed its dividend yield to 3.6%, much higher than its historical average, making it a great time to buy this stock.

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Person moving boxes into a new apartment.

5. Invitation Homes

Invitation Homes (NYSE:INVH) is the premier residential REIT specializing in single-family rental housing. The company owns roughly 75,000 homes, primarily in suburban and urban markets across the Sun Belt. High demand for single-family rental housing has given the REIT quite the boost in earnings as of late.

Its year-over-year rental growth has remained in the double-digits for close to two years now. And given the essential nature of its business, its business model isn't at risk of stopping any time soon. Its dividend yield is low by most REIT standards at just over 2%, but it's a strong contender for increases in the future.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

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An open-air shopping center or strip mall.

6. Federal Realty Investment Trust

Federal Realty Investment Trust (NYSE:FRT) is another outstanding dividend stock that, as of late, has taken quite the beating. This retail REIT owns 104 outdoor shopping centers and mixed-use buildings and is the only REIT to hold the title of Dividend King. The company has raised its dividends for 55 years and boasts an outstanding balance sheet.

Despite growing concerns over recessionary impacts on the retail industry, Federal Realty Investment Trust remains one of the best REITs today, paying a dividend yield of 3.8%.

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People watch a film in a movie theater.

7. EPR Properties

The pandemic may have put a prolonged pause on experiential activities, but experiences are back in a big way. Making EPR Properties (NYSE:EPR), the premier experiential net lease REIT, the best way to gain exposure to this high-demand industry.

The REIT owns 358 properties, from gaming centers, movie theatres, and resorts to gyms and concert venues. Yet, to recover from the initial pandemic impacts on its share price in the March 2020 crash, its beaten-down share price has pushed its dividend yield to 6%. Given its recent performance and strong balance sheet, it's a fantastic buy for long-term investors.

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Mobile homes under palm trees.

8. Sun Communities

Sun Communities (NYSE:SUI) is a residential REIT specializing in the ownership, development, sale, and leasing of mobile home communities, RV resorts, and marinas across the United States, Canada, and the U.K.

The company has seen tremendous growth over the last few years, thanks to the pandemic-related RV boom and the need for more affordable housing solutions. At a 2% dividend yield, it's not the best paying dividend REIT out there. But it's one of the best discounted buys right now, being down 19% this year despite fantastic earnings and long-term growth opportunities.

ALSO READ: Why I'm Putting $1,000 Into Sun Communities

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Long shot of four people in a warehouse.

9. Prologis

Prologis (NYSE:PSD) is one of the largest REITs by market capitalization and the leading industrial operator in the world, with ownership and interest in 4,700 warehouses and distribution centers in 19 countries.

Its 2% dividend return isn't exactly stellar, but its track record, size, growth opportunities, and financial standing can't be beat. If you're looking for exposure to the high-demand industrial industry -- a top-performing commercial real estate sector right now -- Prologis is by far the best REIT to invest in.

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Stack of moving boxes.

10. Public Storage

Public Storage (NYSE:PSA) is the largest self-storage operator in the world, owning or having an interest in 2,600 storage facilities in 39 states. It's also one of the industry's most well-funded and liquid REITs, with an A credit rating.

Right now, its dividend yield is just under 2.3%, and the company has made 160 consecutive dividend payments. Its top-notch portfolio and exposure to a recession-resilient industry that has constantly provided above-average returns make it one of the best buys for the self-storage industry.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

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Group of cell towers.

11. American Tower

American Tower (NYSE:AMT) is the largest REIT by market capitalization. This unique infrastructure REIT owns and leases 220,000 different communication assets, such as cell towers, antennas, and data centers, across the globe.

The REIT has provided a superior annualized return of 15% for the past 25 years and still has a lot of growth opportunities ahead as it ramps up its data center business and continues the rollout of 5G. Its shares are down just under 6% this year, making its dividend yield 2%.

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Document boxes in storage.

12. Iron Mountain

Iron Mountain (NYSE:IRM) has been in the data storage business for over 71 years. Specializing first and foremost in storing physical assets -- from medical records, documents and files to art or other collectibles -- the company is now branching into the digital data storage scene after acquiring several data center facilities.

Its role in both old school and new school data storage solutions makes it one of the best ways to gain exposure to this fast-growing industry. The stock's yield today is around 4.5%.

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People moving boxes into self storage unit.

13. National Storage Affiliates Trust

National Storage Affiliates Trust (NYSE:NSA) isn't the largest self-storage REIT, but it has maintained the best performance of all major self-storage REITs for the past 10 years. The company owns and leases roughly 1,000 self-storage facilities under several different corporate brands called its PRO partners. Its annualized return was over 27% in the last decade, and its dividend yield sits around 3.4% today.

ALSO READ: Don't Sleep On This Money-Making Real Estate Stock

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Smiling people dining outside.

14. Welltower

Welltower (NYSE:WELL) is a healthcare REIT that invests in senior homes, outpatient medical, and post-acute care facilities in the U.S., Canada, and the U.K. Its large exposure to the senior housing industry positions it for long-term growth as the baby boomers move into their elder years. Still lingering from pandemic impacts, the stock is down 10% from pre-pandemic highs, which puts its current yield at about 3%.

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People in a warehouse.

15. W.P. Carey

W.P. Carey (NYSE:WPC) is a somewhat under-the-radar REIT that owns a diverse portfolio of over 1,400 commercial properties across the globe. While one of the less popular REITs to choose from, this diversified REIT has a lot to offer income investors due to its reliable performance and consistent dividend increases. The stock is up 7.5% this year, and its dividend pays close to a 5% yield.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

Previous

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Person smiles while typing on laptop as another person stands by to help.

Honing in on the best of the industry

Investing in some of the best REITs today should help boost your portfolio and passive income in the long run. Today's beaten-down share prices mean many of these fantastic stocks are on sale, making it a great time to buy.

Liz Brumer-Smith has positions in American Tower, Digital Realty Trust, Invitation Homes Inc., Iron Mountain, Prologis, and Sun Communities. The Motley Fool has positions in and recommends American Tower, Camden Property Trust, Digital Realty Trust, Invitation Homes Inc., Iron Mountain, Prologis, and Sun Communities. The Motley Fool recommends EPR Properties. The Motley Fool has a disclosure policy.

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