Posted on February 20, 2018
Learn About These Exciting High-Dividend-Paying REITs
High-dividend-paying alternatives to routine investments are Real Estate Investment Trusts (or REITs), as they offer finer differentiation and produce repeated and dependable sources of dividend income.
REITs managed to popularize the benefits of commercial real estate investments to all investors, not just those who are wealthy or those who conduct businesses through larger financial intermediaries.
The REIT Act gave way to portfolios that are diverse and income-producing, as well as investment into other asset classes. The legislation, signed by President Dwight D. Eisenhower fifty years ago, exempted a small group of unique companies— REITs —from corporate taxes. The tax status of REITs are unique, and the law has exempted qualifying companies from paying corporate income tax on qualifying income, distributing taxable income as dividends. The most widely known features of a REIT is that it has a high payout.
REITs are exceptional because they tend to be reasonably priced, payouts regularly increase, and they experience inflation in a way that’s different than bonds. There some REITs that you might consider investing in including American Assets Trust, Franklin Street Properties, Kimco Realty, Monmouth Real Estate Investment, NexPoint Residential Trust, NexPoint Residential Trust, Annaly Capital Management, and some other trusts owning mixed-use properties, residential mortgages, and similar debt.
Read on to discover the names of diversified management groups you might want to learn a bit more about:
Agree Realty (ADC) is a retail REIT, which leases to hundreds of retailers in 43 states, including Lowe’s, Walgreens, and McDonald’s. The trust is a “triple net lease” REIT, meaning that tenants are responsible for paying for insurance, maintenance expenses, and property taxes.
Crown Castle International (CCI) is an atypical REIT, which usually leases to apartment space, industrial spaces, offices, and retail spaces. Crown Castle has seen a great deal of growth, and its customers are businesses with excellent credit ratings. CCI has reliable dividends, and a director purchased $3 million in stock during the third quarter in 2017.
Education Realty Trust (EDR) is responsible for student housing throughout the nation. EDR owns and operates student housing in 26 states near several dozen universities, including Texas Tech and Oregon State. EDR is projected to provide housing for Cornell, Arizona State, and a number or other campuses.
In addition, you likely want to learn more about Bluerock Residential Growth REIT (BRG), which is engaged in acquiring and developing a diversified portfolio of real estate. Learn more by visiting the company’s website.
REIT stocks are a logical move for most, and before you think about releasing your hold on any of your real estate investment trust stocks, you may want to reconsider. If you have any thoughts on other REITs to watch for, please share!