One of the appeals of real estate investment trusts (REITs) is that some of them pay exceptionally high dividends. How long this can go on — with the Fed on the brink of raising rates — is another question, but for now it’s easy to find REITs paying more than 6% dividends.
Here are eight with enough average daily volume to qualify as liquid enough for large institutions to enter:
Simon Property Group Inc. (NYSE:SPG) will pay a dividend of 7.03%. The Indianapolis-based company is a retail-focused company with properties in North America, Europe and Asia. Simon Property Group is a member of Standard & Poor’s 100. In June 2022, Jeffries analysts moved the REIT from “buy” to “hold” with a price target of $100.
Medical Properties Trust Inc. (NYSE: MPW) will pay a dividend of 8.47%. The REIT of healthcare facilities has just hit a new low in 2022 — one of the reasons yields seem so high. Medical Properties Trust, headquartered in Birmingham, Alabama, has been in the healthcare industry since 2003 and went public on the NYSE in 2005.
Omega Healthcare Investors Inc. (NYSE: OHI) will pay a dividend of 8.80%. Based in Hunt Valley, Maryland, the REIT operates senior care centers, skilled nursing facilities, and assisted living facilities in the United States and the United Kingdom.
Vornado Realty Trust (NYSE: VNO) to pay 8.06% dividend. The REIT owns, manages and develops office and retail assets, primarily in New York City. In May 2022, Piper Sandler downgraded the company from “neutral” to “underweight” with a price target cut from $44 to $35.
Sabra Healthcare REIT Inc. (NASDAQ: SBRA) pays 8.83% dividend. Headquartered in Irvine, California, it operates skilled nursing, housing and specialty hospitals across the United States. At the end of June 2022, Jeffries lowered his “buy” rating to “hold” and lowered the price target from $15 to $14.
SL Green Realty Corp. (NYSE: SLG) will pay a dividend of 8.14%. The company says it is the largest owner of office real estate in New York City, including properties on One Madison Avenue, 100 Church Street and 100 Park Avenue. In September 2022, Truist analysts raised their rating on the REIT from “hold” to “buy” with a price target of $59.
Uniti Group Inc. (NASDAQ: UNIT) will pay a 6.94% dividend. This REIT will bottom out in 2022 for the year. The Little Rock, Arkansas-based company is a communications infrastructure company that provides fiber optic and other wireless solutions for customers.
Hudson Pacific Properties Inc. (NYSE: HPP) will pay a dividend of 6.76%. This REIT hit lows for the year. The company owns and operates office and studio properties in the United States and Canada. In early September 2022, Morgan Stanley upgraded Hudson Pacific Properties from “underweight” to “equal weight” with a price target of $13.
Please note that REITs may increase or decrease dividend payments as management deems necessary – there is no guarantee that current payment levels will be maintained. If the value of underlying properties falls as a result of the Fed’s anti-inflation measures, the likelihood of dividend cuts increases.
Ready next: This little-known REIT has delivered double-digit annual returns for the past five years
Looking for high dividend yields without the price volatility?
Real estate is one of the most reliable sources of recurring passive income, but publicly traded REITs are just one option to access this income-generating asset class. Checking out Benzinga’s real estate coverage in the private market and find more ways to add cash flow to your portfolio without timing the market or falling victim to wild price swings.
No investment advice. For educational purposes only.
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