USA

3 high-yield REITs to buy now

Real estate investment trusts (REITs) offer some of the highest dividend yields on the market. This is not surprising since they are legally required to pay out 90% of their after-tax profits to shareholders.

Unlike high dividend aristocrat, REITs are sensitive to several market factors, including changes in interest rates, inflation, leverage issues, and regulatory changes. There is also the issue of liquidity. No one wants to be stuck with a stock because no one is going to buy it at a reasonable price.

I don't blame dividend investors who are only looking for yield. But as a conservative investor, I like to look at other qualities as well. In fact, Barchart's screening tools allow investors to easily select additional characteristics of companies to find the best REIT for them. For example, dividend yield is one factor, but in my experience as a stock analyst, I believe analyst ratings and liquidity are important factors. That's how I created this list.

How We Screened These Stocks

To get a shortlist of the highest yielding REITs, I started by visiting Barchart's site. Watch list This feature allows you to create and follow companies categorized according to your preferences. In this case, use a previously prepared REIT watch list;[画面]Click screener page.

Once there, I used four filters to find the best and highest yielding REITS. they were:

  • Annual dividend rate: I looked for stocks with annual dividends greater than 5% on a trailing 12-month basis.
  • Average trading volume for 50 days: We used 1,000,000 as the minimum average to ensure healthy liquidity.
  • Number of analysts: We rate stocks above 8 to avoid giving them a “buy” rating if they are covered by just one financial analyst firm.
  • Current analyst ratings: We have ratings of 4 or higher to ensure you only get stocks that are rated Buy as recommended by Wall Street.

Now that the results are out, I've arranged them in descending order of dividend yield. So let's discuss these three REITs and why they might be the income stocks you're looking for.

Vici Property (VICI)

Vici Properties is a REIT focused on “.experience assets” aims to provide customers with a hospitality and entertainment experience. The company owns some of the country's most famous entertainment venues, including Caesars Palace, MGM Grand, and the Venetian Resort in Las Vegas.

2023 ended on a strong note for Vici Properties. Total revenue reached $3.6 billion, a significant increase of 38.9% compared to the previous year. Adjusted funds per share, the best way to measure a REIT's ability to pay dividends, also rose 11.8% to $2.15.

The company is reported to pay a dividend in 2024. $1.66 per share, which yields a yield of 5.71%. However, given its history of increasing dividends in September, we expect the numbers to increase by then.

VICI stock is also actively traded, with an average 50-day trading volume of over 6 million shares. 21 analysts have rated this product an 'a'. Strong Buy with a solid rating of 4.67.

Starwood Property Trust (STWD)

Starwood Property Trust America's largest commercial mortgage REITwhose portfolio exceeds $27 billion. Commercial and infrastructure financing, Real Estate Investments, and Investments and Services segments.The company provides financing up to 500 million dollars We operate in the United States and Europe.

Starwood Properties' 2023 report was mixed. GAAP net income is $871.5 million to $339.2 million. Distributable earnings also decreased slightly from $726.3 million to $662.6 million.

Still, the company Moderate purchase rating From 8 analysts.Starwood also pays 48 cents per quarter, which equates to an excellent forward yield of $1.92 per year, or 9.81%. Trading is also active, with the average 50-day trading volume of STWD stock exceeding 2 million shares.

Redwood Trust (R.W.T.)

Redwood Trust is the highest-yielding REIT on today's list and is a common candidate on many other high-yield REIT lists.It's similar to crowdfunding investment platformRedwood provides housing credit to housing consumers and investors, and has also diversified into providing early stage venture capital.

Redwood is the highest-yielding REIT on this list, boasting a forward yield of 11.24% based on quarterly dividends. 16 cents per share. Also, Moderate purchase rating Based on 10 analyst average of 4.30. Moreover, the 50-day average volume is over 1 million, making it a highly liquid investment choice.

Regarding Redwood's financials, its fiscal year 2023 report shows a decline in net interest income from the previous year. $155 million to $93 million. However, improved non-interest income helped the company end the year with a loss of 11 cents per share, compared to a loss of $1.43 last year.

Redwood CEO Christopher Abate I'm pretty optimistic about this year's results. “We expect 2024 to be the foundation for our long-term success as we expand our partnerships and distribution channels and position Redwood on a trajectory for revenue growth and stability in the coming quarters and years,” he said. I will put it on.''

final thoughts

REITs offer some of the highest yields on the market, but they also come with risks inherent to this sector. By screening key criteria, an investor can minimize such risks and choose her REIT that best suits her income investment needs.

more stock market news from bar chart

On the date of publication, rick orford I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Summarize this content to 100 words
Real estate investment trusts (REITs) offer some of the highest dividend yields on the market. This is not surprising since they are legally required to pay out 90% of their after-tax profits to shareholders. Unlike high dividend aristocrat, REITs are sensitive to several market factors, including changes in interest rates, inflation, leverage issues, and regulatory changes. There is also the issue of liquidity. No one wants to be stuck with a stock because no one is going to buy it at a reasonable price.

I don't blame dividend investors who are only looking for yield. But as a conservative investor, I like to look at other qualities as well. In fact, Barchart's screening tools allow investors to easily select additional characteristics of companies to find the best REIT for them. For example, dividend yield is one factor, but in my experience as a stock analyst, I believe analyst ratings and liquidity are important factors. That's how I created this list. How We Screened These StocksTo get a shortlist of the highest yielding REITs, I started by visiting Barchart's site. Watch list This feature allows you to create and follow companies categorized according to your preferences. In this case, use a previously prepared REIT watch list;[画面]Click screener page. Once there, I used four filters to find the best and highest yielding REITS. they were: Annual dividend rate: I looked for stocks with annual dividends greater than 5% on a trailing 12-month basis.
Average trading volume for 50 days: We used 1,000,000 as the minimum average to ensure healthy liquidity.
Number of analysts: We rate stocks above 8 to avoid giving them a “buy” rating if they are covered by just one financial analyst firm.
Current analyst ratings: We have ratings of 4 or higher to ensure you only get stocks that are rated Buy as recommended by Wall Street.
Now that the results are out, I've arranged them in descending order of dividend yield. So let's discuss these three REITs and why they might be the income stocks you're looking for.

Vici Property (VICI)Vici Properties is a REIT focused on “.experience assets” aims to provide customers with a hospitality and entertainment experience. The company owns some of the country's most famous entertainment venues, including Caesars Palace, MGM Grand, and the Venetian Resort in Las Vegas. 2023 ended on a strong note for Vici Properties. Total revenue reached $3.6 billion, a significant increase of 38.9% compared to the previous year. Adjusted funds per share, the best way to measure a REIT's ability to pay dividends, also rose 11.8% to $2.15. The company is reported to pay a dividend in 2024. $1.66 per share, which yields a yield of 5.71%. However, given its history of increasing dividends in September, we expect the numbers to increase by then. VICI stock is also actively traded, with an average 50-day trading volume of over 6 million shares. 21 analysts have rated this product an 'a'. Strong Buy with a solid rating of 4.67. Starwood Property Trust (STWD)Starwood Property Trust America's largest commercial mortgage REITwhose portfolio exceeds $27 billion. Commercial and infrastructure financing, Real Estate Investments, and Investments and Services segments.The company provides financing up to 500 million dollars We operate in the United States and Europe.

Starwood Properties' 2023 report was mixed. GAAP net income is $871.5 million to $339.2 million. Distributable earnings also decreased slightly from $726.3 million to $662.6 million.Still, the company Moderate purchase rating From 8 analysts.Starwood also pays 48 cents per quarter, which equates to an excellent forward yield of $1.92 per year, or 9.81%. Trading is also active, with the average 50-day trading volume of STWD stock exceeding 2 million shares.Redwood Trust (R.W.T.)Redwood Trust is the highest-yielding REIT on today's list and is a common candidate on many other high-yield REIT lists.It's similar to crowdfunding investment platformRedwood provides housing credit to housing consumers and investors, and has also diversified into providing early stage venture capital. Redwood is the highest-yielding REIT on this list, boasting a forward yield of 11.24% based on quarterly dividends. 16 cents per share. Also, Moderate purchase rating Based on 10 analyst average of 4.30. Moreover, the 50-day average volume is over 1 million, making it a highly liquid investment choice. Regarding Redwood's financials, its fiscal year 2023 report shows a decline in net interest income from the previous year. $155 million to $93 million. However, improved non-interest income helped the company end the year with a loss of 11 cents per share, compared to a loss of $1.43 last year.

Redwood CEO Christopher Abate I'm pretty optimistic about this year's results. “We expect 2024 to be the foundation for our long-term success as we expand our partnerships and distribution channels and position Redwood on a trajectory for revenue growth and stability in the coming quarters and years,” he said. I will put it on.''final thoughts REITs offer some of the highest yields on the market, but they also come with risks inherent to this sector. By screening key criteria, an investor can minimize such risks and choose her REIT that best suits her income investment needs.
more stock market news from bar chartOn the date of publication, rick orford I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

https://www.nasdaq.com/articles/3-highest-yielding-reits-to-buy-today 3 high-yield REITs to buy now

Back to top button