Real estate investment trusts (REITs) own, operate, or finance income-producing real estate. REITs allow individuals to invest in many different types of real estate without directly owning or managing the property. REITs typically focus on a particular type of real estate, such as residential, commercial, or industrial, and are attractive to income-seeking investors because they are required to distribute a large portion of their taxable income to shareholders in the form of dividends.
Let's look at two REITs with yields up to 7.1% that have been increasing their dividends in recent years.
Cube Smart
CubeSmart (NYSE:CUBE) is the third-largest owner and operator of self-storage facilities in the U.S. Currently, the company owns or manages 1,406 self-storage facilities in 178 markets across 41 states and the District of Columbia.
CubeSmart currently pays a quarterly dividend of $0.51 per share, which equates to $2.04 per share per year, giving the company's stock a yield of approximately 4.4% at the time of writing.
In addition to its high yield, CubeSmart has also been a star for dividend growth, with a 4.1% increase in December marking its 14th consecutive year of annual dividend increases.
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LTC Properties
LTC Properties (NYSE:LTC) is a REIT that invests primarily in senior housing and healthcare facilities. The company's portfolio currently consists of 202 facilities, including 124 assisted living facilities and 77 skilled nursing facilities, across 30 operating partners in 26 states.
LTC currently pays a monthly dividend of $0.19 per share, which equates to an annual dividend of $2.28 per share, giving the company's stock a yield of approximately 7.1% at the time of writing.
Not only does LTC offer a high yield, it is also a reliable dividend payer, having maintained its current monthly dividend rate since October 2016.
Explore opportunities outside of REITs
While publicly traded REITs are a convenient way to invest in real estate, we believe some of the most attractive opportunities lie in the private markets. Benzinga's Real Estate Offer Screener curates private market real estate offers from a trusted platform with a track record of high returns.
Whether you are an accredited or non-accredited investor, you can filter investment opportunities based on investment criteria such as minimum investment amount, property type, target rate of return, etc. These offerings provide a unique opportunity to diversify your portfolio and take advantage of potentially high-yield investments not available on the public exchange.
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Browse offers
Latest Private Market Offerings
QOZ Fund III: Realizes significant tax benefits by investing in a portfolio of multifamily development projects located in designated opportunity zones and with long-term growth potential.
Income Plus Fund: A private real estate fund for investors looking for passive income and capital appreciation – target annual net return of 9% to 11%.
Golden Leaf Farming LP: A leading almond and pistachio farm with a target return of 13.8%
Find these and other exclusive real estate investment opportunities with Benzinga's Offer Screener Dive into the private market and discover the potential for big returns beyond the public REIT market.
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The article “Enjoy Real Estate Investing with REITs Proud of Yields of up to 7.1%” originally appeared on Benzinga.com.
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