15 REITs for Long-Term Growth and Income

Real estate investment trusts (REITs) were created several decades ago to offer investors the ability to own commercial real estate without digging deep or borrowing big for the cash to fund the purchases.

REITs own portfolios of income-producing real estate, and non-traded or publicly held, they all carry the obligation to pay out at least 90% of their taxable income to their shareholders.

That makes them ideal for both income and buy-and-hold investing. Here are some publicly traded REITs to consider, representing not only some promising buys themselves but also the range of industries that REITs inhabit.

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Realty Income (NYSE:O) is one of the best-known REITs in the business. Owner of more than 11,000 properties leased to more than a thousand different clients, this large retail REIT markets itself as "The Monthly Dividend Company."

Realty Income has paid a monthly dividend, without fail, for more than 50 years and is currently yielding about 4.11% at a share price of about $71.47. A compound average annual return of 15.5% since its 1994 initial public offering (IPO) also commends this company to long-term investors.

ALSO READ: Investing in Retail REITs

Duke Realty (NYSE:DRE) is considered an industrial REIT, a particularly hot segment right now as companies clamor for warehouse space, paying escalating rents and locking down long-term leases.

Amazon, Home Depot, UPS, and Target are among the tenants in this portfolio of 545 facilities in 19 markets.

Duke Realty stock has handily beaten the S&P 500 in total return for years and is now yielding about 1.88% at a share price of approximately $58.65. That yield is lower than many other REITs and reflects the strong valuation the market places on this logistics specialist.

Digital Realty Trust (NYSE:DLR) is one of just a few data center REITs. The company's portfolio comprises more than 280 facilities in 25 countries on six continents.

A who's who of major tenants, such as Amazon Web Services and Meta Platforms (NASDAQ:FB), helps ensure the lights stay on now and going forward for this big REIT, which has raised its dividend for 16 straight years and now yields about 3.25% at a share price of about $145.60.

Digital Realty has recently expanded into Africa in a joint venture and now operates more than 280 facilities in 25 countries on six continents.

ALSO READ: Why I'll Be Owning Digital Realty Trust Well Into Retirement

Innovative Industrial Properties (NYSE:IIPR) is a newcomer on this list. Only in business since 2016, IIPR specializes in buying and leasing back production facilities to medical marijuana growers.

IIPR's business has grown alongside the list of states where that business is legal -- currently more than 35. The company's portfolio is growing, too, and now numbers 107 properties in 19 states.

A $10,000 investment at the time of the IPO in 2016 would now be worth about $114,000. And after a recent dividend increase, IIPR stock is yielding about 3.70% at a share price of about $187.24.

Alexandria Real Estate Equities (NYSE:ARE) has grown from a garage start-up in 1994 to a leader in life sciences, agritech, and technology real estate. The REIT has raised its dividend for 12 straight years and is currently yielding about 2.27% at a share price of about $195.59.

Intense demand, including for collaborative lab space during the pandemic, has led to record leasing rates of late, such as for a new headquarters building near Boston for vaccine-maker Moderna. And this REIT is busily developing new space that should continue adding to the bottom line.

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Weyerhaeuser (NYSE:WY) has a portfolio of about 11 million acres of timberland in the United States and more under license in Canada, making it one of the largest private owners of forestry property in the world.

Weyerhaeuser stock has provided a total return of about 178% in the past 10 years and is currently yielding about 1.82% at a share price of approximately $39.48.

ALSO READ: Here's Why Lumber Inflation Is Great for Weyerhaeuser

Postal Realty Trust (NYSE:PSTL) has a unique niche: landlord to the U.S. Postal Service. This REIT currently has a portfolio of 1,004 properties it owns and another 397 it manages. The company says they're in every state, and they're all leased.

Only public since 2019, PSTL has raised its dividend for three straight years and is now yielding about 5.32% at a share price of approximately $17.10. The postal service itself should benefit from newly passed legislation that bolsters its operation, and that should benefit Postal Realty Trust and its shareholders in the years ahead, too.

Agree Realty (NYSE:ADC) is another monthly dividend payer that has been rewarding shareholders nicely for years. Agree Realty has provided a 10-year total return of about 389.4%, compared to about 292.6% for the S&P 500, and has an annualized yield of about 3.99% at a share price of approximately $68.46.

This retail REIT has a portfolio of around 1,400 properties in 47 states, with nearly all of them leased out. Grocery stores are responsible for about 10% of its base rent, while its major individual clients include Walmart and Dollar General.

ALSO READ: Want to Get Richer? 2 REITs to Add to Your Portfolio

Gladstone Land (NASDAQ:LAND) is a farmland REIT that has grown a $10,000 investment made 10 years ago into about $38,440 today. The company specializes in owning and leasing its farmland -- which it notes has abundant water resources -- to tenants producing berries, vegetables, fruits, and nuts.

The 25-year-old REIT currently has 164 farms -- all leased -- in 15 states. Gladstone Land has paid a dividend every month since its January 2013 IPO, including 25 increases in the past 28 quarters. Gladstone stock is currently yielding about 1.35% at a share price of approximately $38.68.

American Tower (NYSE:AMT) is one of the world's largest REITs and owners/operators of mobile telecommunications towers. The company went public in 1998 and has seen explosive growth reflective of the industry it serves, including all the major cellphone carriers.

American Tower has raised its dividend for 13 straight years and is now yielding about 2.09%. This REIT now has more than 180,000 towers around the world and is riding the 5G rollout wave to more growth ahead.

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Medical Properties Trust (NYSE:MPW) is a good example of a recession-resistant investment in an essential business. This REIT is one of the world's largest private owners of hospitals -- about 440 of them, mostly in the United States.

That's still only a tiny fraction of the addressable market, making room for more growth ahead for Medical Properties stock, which already has produced a market-beating total return of about 345.6% in the past 10 years and is currently yielding a nice 5.50% after raising its dividend for eight straight years.

ALSO READ: Investing in Healthcare Stocks

UMH Properties (NYSE:UMH) has been around since 1968, and if you had invested $10,000 in its stock, say, 20 years ago, at this time, you'd have about $69,000 for your efforts.

UMH Properties owns and operates 127 manufactured home communities with about 24,000 developed homesites and 8,700 rental units in 10 states, as well as another 1,800 acres in hand to develop more.

The need for affordable housing should continue to help this REIT perform well for shareholders, adding to a quarter-century of dividend payouts that have UMH stock currently yielding about 3.32% at a share price of approximately $23.92.

Essex Property Trust (NYSE:ESS) has raised its dividend for 28 straight years, putting this multifamily residential REIT into exclusive company as a Dividend Aristocrat, those S&P 500 companies that have raised their dividends for at least 25 straight years.

This REIT has more than doubled the S&P 500 in total return in the past 20 years and is currently yielding about 2.50% from a portfolio of approximately 250 apartment communities in high-demand areas along the West Coast, primarily in Southern California and the San Francisco Bay and Seattle areas.

ALSO READ: 3 Reasons to Buy Dividend Aristocrats for Your Retirement Account

W.P. Carey (NYSE:WPC) is a well-regarded, well-diversified REIT with a portfolio fairly evenly spread among industrial and warehouse tenants, office, retail, and self-storage. Geographic diversity is here, too, with more than a third of its rent revenue coming from outside the United States.

The company went public in 1998 and has raised its dividend every year since, giving it a current yield of about 5.11% at a share price of approximately $81.87.

Last but not least is an office REIT. Not just any office REIT, though. S.L. Green (NYSE:SLG) is the largest owner/operator of office space in New York City. The company has interests in 73 buildings totaling 34.9 million square feet -- including nearly 27 million square feet in Manhattan -- and is currently maintaining a yield of about 4.99% despite the travails of office space in general.

If this sector does indeed see a full recovery from the pandemic, this is a company and a place that could well lead the way.

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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.

These REITs each have their own business models, including those within the same segment. What they do share is the quite reasonable expectation that those who buy and hold each of these stocks will be glad they bought and held as the years go by.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Marc Rapport owns Agree Realty, Alexandria Real Estate Equities, Amazon, Digital Realty Trust, Innovative Industrial Properties, and Medical Properties Trust. The Motley Fool owns and recommends Amazon, American Tower, Digital Realty Trust, Gladstone Land, Home Depot, Innovative Industrial Properties, and Meta Platforms, Inc. The Motley Fool recommends Alexandria Real Estate Equities, Moderna Inc., and UMH Properties. The Motley Fool has a disclosure policy.