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15 High-Dividend REITs To Watch Now

By Jeremy Bowman - Sep 29, 2022 at 8:10AM
A lightning storm at night.

15 High-Dividend REITs To Watch Now

Any port in a storm

2022 is shaping up to be one of the worst years on record for stocks as all three major indexes are now in a bear market, with the Dow Jones Industrial Average joining the S&P 500 and Nasdaq earlier this week.

However, some stocks are faring better than others, and dividend stocks tend to outperform in down markets. That's because these stocks offer a reliable income stream and have a track record of paying dividends in good times and bad.

Keep reading to learn about 15 high-dividend REITs that can keep paying you even as the stock market threatens to sink lower.

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The inside of a warehouse packed with goods.

1. Prologis

It's no secret that e-commerce is big business. Amazon is one of the world's largest companies, and Alibaba's market cap was close to $1 trillion before investor faith in China collapsed.

However, you can also get exposure to e-commerce through real estate. Prologis (NYSE: PLD) is the world's biggest industrial real estate investment trust (REIT). Companies like Amazon, Home Depot, and FedEx operate from the REIT's nearly 5,000 logistics warehouses at around 1 billion square feet.

And after a recent pullback, Prologis now offers a 2.9% dividend yield. That sell-off looks like a buying opportunity for a stock that's long been a proven winner, especially considering e-commerce growth should bounce back.

ALSO READ: 3 Advantages That Could Completely Change Your Opinion of Prologis

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Group of cell towers.

2. Crown Castle

Cell towers may not sound like a business for a REIT, but Crown Castle (NYSE: CCI) has grown to be one of the biggest REITs on the stock market by operating 40,000 cell towers and 80,000 route miles of fiber. That's essential infrastructure for the telecom industry, and big telecoms like AT&T, Verizon, and T-Mobile rely on Crown Castle, making up roughly 70% of its business.

The company has a long track record of growth on the market and today offers a dividend yield of 3.8%.

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A businessperson holding a stopwatch behind an ascending stack of coins.

3. Realty Income

Realty Income (NYSE: O) focuses on basic brick-and-mortar retail concepts like grocery stores, convenience stores, gas stations, and drugstores, creating a reliable income stream for investors.

The company owns more than 11,400 properties and counts chains like Walgreens and 7-Eleven as its biggest tenants. Realty also offers a bonus for dividend investors -- it pays a monthly dividend, making its 4.8% yield even more appealing for investors looking for help with monthly bills.

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A doctor sits with a patient.

4. Welltower

Healthcare is another lucrative corner of the REIT market, and Welltower (NYSE: WELL) provides real estate for senior housing and outpatient facilities. With the senior population expanding as baby boomers reach retirement age, it's a good time to be in the business of senior housing. Welltower has a track record of outperforming the market and now offers a dividend yield of 3.7%.

ALSO READ: 3 Healthcare REITs To Consider in 2022

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A roulette wheel and casino worker.

5. VICI Properties

VICI Properties (NYSE: VICI) is an experiential REIT focused on the casino, hospitality, and entertainment industry. It owns 43 gaming facilities, including Caesar's Palace, the MGM Grand, and the Venetian, putting the company in an enviable position as the travel sector rebounds.

In fact, VICI's stock price set a new all-time high in August, when many of its peers were moving in the opposite direction. Its 5.1% dividend yield also makes it a great choice for income investors looking to cash in on the travel rebound.

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Shoppers walking throughout a crowded two-story mall.

6. Simon Property Group

Malls were among the pandemic's victims, and the sector has been struggling for years. However, Simon Property Group (NYSE: SPG), which owns high-end Class A malls, shows that the death of malls has been exaggerated.

The stock recovered from the pandemic lockdowns but has sold off again this year with the broader decline in the stock market. That's good news for investors, as Simon Property Group now offers a dividend yield of 7.8%. When market sentiment shifts, the stock will likely bounce back.

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Servers in a data center.

7. Digital Realty Trust

Digital Realty Trust (NYSE: DLR) is one of the biggest data center operators in the country, providing crucial tech infrastructure for a wide range of customers. It has more than 300 data centers worldwide and serves more than 4,000 customers.

Though the stock has fallen sharply this year amid the broader tech sell-off, demand for data centers isn't going away. Dividend investors can take advantage of the company's 4.7% dividend yield today.

ALSO READ: Investing in Data Center REITs

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Apartment buildings with trees and flowers along a city sidewalk.

8. AvalonBay Communities

AvalonBay Communities (NYSE: AVB) is one of several residential REITs worth looking at. The company manages apartment buildings, primarily in the Northeast and the West Coast, with 89,000 apartments in 299 communities.

Like its peers, AvalonBay is benefiting from rising rents across the country, seeing double-digit growth in most of its markets. Investors can take advantage of that rent growth and enjoy Avalon's 3.5% dividend yield.

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An older apartment building.

9. Equity Residential

Like AvalonBay, Equity Residential (NYSE: EQR) operates apartment buildings in cities nationwide. It's also similar in size to AvalonBay, with 310 properties and more than 80,000 units.

Rents have grown by double digits at Equity Residential, and its occupancy rate was 96.6% -- a solid number for any REIT. Rising interest rates have cooled off the stock price this year, but Equity's 3.7% dividend yield should keep income investors happy.

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People moving boxes into self storage unit.

10. Extra Space Storage

Self-storage is another popular REIT category -- one that did well during the pandemic as Americans stocked up on goods and many moved into new homes. Extra Space Storage (NYSE: EXR) is one of the largest self-storage companies in the country, with 2,177 properties and 1.6 million units.

Same-store revenue jumped 22% in its most recent quarter, showing the company is seeing strong growth in the economic reopening. On top of that, the stock offers a dividend yielding 3.5%.

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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A person in scrubs with life sciences-oriented images sketched in the foreground.

11. Alexandria Real Estate Equities

Alexandria Real Estate Equities (NYSE: ARE) offers a unique way to get exposure to REITs, as the company specializes in office space for life science companies. Its strategy is to build clusters of interconnected companies and institutions in places like New York, San Francisco, and Cambridge, Massachusetts. That strategy has delivered strong growth over the company's history, and it currently offers investors a solid 3.4% dividend yield.

ALSO READ: REITs: What Are They And How To Invest in Them

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Brownstone facades and row houses in an iconic neighborhood of Brooklyn Heights in New York City.

12. Mid-America Apartment Communities

Another residential REIT to make the list is Mid-America Apartment Communities (NYSE: MAA). The company has more than 100,000 apartments in 16 states.

This REIT has experienced double-digit rent growth like its peers and has proven itself a reliable dividend payer, paying a dividend every quarter since 1994. Today, it offers a dividend yield of 3.2%.

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Document boxes in storage.

13. Iron Mountain

Iron Mountain (NYSE: IRM) is another unique REIT. It's the leader in records management, helping companies store, protect, and manage information and assets. The company counts 95% of the Fortune 1000 as customers and has a long track record of growth on the stock market. As a dividend payer, the stock is also a strong option with a dividend yield of 5.3%.

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Four people inside a factory.

14. W.P. Carey

W.P. Carey (NYSE: WPC) is one of the largest commercial net-lease REITs on the market. The company has nearly 1,400 properties with 386 tenants and a near-perfect occupancy rate of 99.1% -- a sign that its focus on operationally critical, single-tenant properties has paid off.

A net lease refers to an arrangement in which tenants pay for expenses like maintenance, property taxes, and insurance. And the stock is a strong dividend payer, currently offering a yield of 5.4%.

ALSO READ: Will Net Lease REITs Survive Inflation?

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A storage unit with the door halfway raised.

15. CubeSmart

Another storage REIT worth considering is CubeSmart (NYES: CUBE), which has outperformed the stock market over the last decade and is now one of the three largest storage companies in the country, with 609 facilities.

The company saw strong growth in its most recent quarter, with same-store revenue up double digits, and is focused on continuing to grow through acquisitions. CubeSmart today offers a 4.3% dividend 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 holding dollar bills up under their eyes.

A great way to get dividends

If you're looking for investment income, REITs are a great way to get it. These investments are required by law to pay out at least 90% of their profits as dividends, and their rental income stream makes them well-protected from greater economic problems.

Best of all, many of these companies have long track records of growing their dividends as they expand, making REITs an excellent option for investors looking for dividend growth as well.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Alibaba Group Holding Ltd. and Amazon. The Motley Fool has positions in and recommends Alexandria Real Estate Equities, Amazon, Crown Castle, Digital Realty Trust, FedEx, Home Depot, Iron Mountain, Mid-America Apartment, and Prologis. The Motley Fool recommends AvalonBay Communities, Simon Property Group, T-Mobile US, VICI Properties Inc., Verizon Communications, and W. P. Carey. The Motley Fool has a disclosure policy.

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