10 REIT Dividend Stocks with Over 5% Yields
In this article, we will be looking at 10 REIT Dividend Stocks with Over 5% Yields. If you want to skip our detailed analysis of the REIT industry, you can go directly to see the 5 REIT Dividend Stocks with Over 5% Yields.
Early 2020 can rightfully be called one of the worst time periods for the global economy, leading to a declining global GDP and a macroeconomic downturn. Global equity markets saw a loss of $27 trillion in market capitalization during the first quarter of 2021, while global REIT share prices also suffered a decline of 42%, according to Hazel View Investments. As the situation worsened, the reliability and stability of the REIT industry also suffered, however, it soon proved itself to be one of the few that managed to hang on while the pandemic beat every sector back. In the fourth quarter of 2020, rising vaccination rates, declining concerns about a US-Chinese trade war in light of Biden's admittance to the White House, and a range of other positive factors resulted in REIT share prices rising, with global real estate securities witnessing gains of about 10.3%. Now, it can be said that there is hope for the industry to continue recovering throughout 2021 and in the future, to retain its position as a reliable investment.
Hazel View Investments, in its report on the 2021 outlook for the REIT industry, mentioned that REITs will witness increased cash flow growth in 2021 as the global GDP is expected to grow by 4.9% this year and 3.5% in 2022. UBS has also estimated that REIT earnings in 2021 can be expected to increase by 11% this year. Additionally, a major factor responsible for driving up the appeal of REIT stocks is the fact that alongside promised recovery and good returns in 2021 and beyond, the lowered share prices of REIT stocks because of the COVID-19 pandemic has rendered their valuations exceptionally cheap and attractive as compared to global equities.
Finally, according to Hazel View Investment's 2021 outlook report, global REITs have a 30% upside in price because of their valuation currently standing at a 25% "discount to intrinsic value." After combining dividends paid out to the price returning to its intrinsic value, it was estimated that the annualized total return to be expected from global REITs currently stands at 15% to 20%, further adding to the attractiveness of these stocks for potential investors.
Hazel View Investments has passed off these optimistic valuation claims after considering three factors: the successful distribution of COVID-19 vaccinations, the willingness of the global population to inoculate, and the continuation of monetary or fiscal policy support. In light of more positive news arising for the economy and for the REIT industry, REIT dividend stocks are becoming more attractive, like other dividend stocks such as Altria Group, Inc. (NYSE: MO), Verizon Communications Inc. (NYSE: VZ), Visa Inc. (NYSE: V), and AbbVie Inc. (NYSE: ABBV).
Investing is becoming difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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Without further ado, let's look at the REIT dividend stocks with over 5% yields. We selected these stocks keeping in mind their fundamentals and growth potential based on core business strengths, alongside analysts' ratings and hedge fund sentiment. We also took care to ensure each stock on the list had a dividend yield of at least 5% and ranked them from the lowest to the highest dividend yield.
REIT Dividend Stocks with Over 5% Yields
10. BRT Apartments Corp. (NYSE: BRT)
Number of Hedge Fund Holders: 3 Dividend Yield: 5%
BRT Apartments Corp. (NYSE: BRT) is a real estate investment trust operating in the residential REITs industry and owning and developing multi-family properties. The company ranks 10th on our list of REIT dividend stocks with over 5% yields.
This May, B. Riley analyst Craig Kucera raised the price target BRT Apartments Corp. (NYSE: BRT) shares from $16.50 to $19, keeping a Neutral rating on the stock.
In the first quarter of 2021, BRT Apartments Corp. (NYSE: BRT) had an FFO of $0.35, beating estimates by $0.09. The company's revenue was $7.10 million, up 2.53% year over year and beating estimates by $32,330. BRT Apartments Corp. (NYSE: BRT) has also gained about 14.62% in the past 6 months and 18.29% year to date.
By the end of the first quarter of 2021, 3 hedge funds out of the 866 tracked by Insider Monkey held stakes in BRT Apartments Corp. (NYSE: BRT) worth roughly $12.3 million. This is compared to 4 hedge funds in the previous quarter with stakes worth approximately $11.4 million.
Like Altria Group, Inc. (NYSE: MO), Verizon Communications Inc. (NYSE: VZ), Visa Inc. (NYSE: V), and AbbVie Inc. (NYSE: ABBV), BRT Apartments Corp. (NYSE: BRT) is a good dividend stock to invest in.
9. Great Ajax Corp. (NYSE: AJX)
Number of Hedge Fund Holders: 11 Dividend Yield: 5.2%
Great Ajax Corp. (NYSE: AJX) is a real estate company holding real estate-owned properties acquired after foreclosure or settlement of non-performing loans, and properties bought outright. It also acquires small-balance commercial loans and ranks 9th on our list of REIT dividend stocks with over 5% yields.
B. Riley has a raised price target on Great Ajax Corp. (NYSE: AJX) of $16, alongside a Buy rating, while Piper Sandler has an Overweight rating on the company's shares, keeping a $15 price target.
In the first quarter of 2021, Great Ajax Corp. (NYSE: AJX) had an FFO of $0.30, beating estimates by $0.04. The company’s revenue was $19.77 million, up 145.94% year over year, and beating estimates by $2.97 million. Great Ajax Corp. (NYSE: AJX) has also gained about 21.42% in the past 6 months and 24.73% year to date.
By the end of the first quarter of 2021, 11 hedge funds out of the 866 tracked by Insider Monkey held stakes in Great Ajax Corp. (NYSE: AJX) worth roughly $9.71 million. This is compared to 8 hedge funds in the previous quarter with a total stake value of about $15.6 million.
Like Altria Group, Inc. (NYSE: MO), Verizon Communications Inc. (NYSE: VZ), Visa Inc. (NYSE: V), and AbbVie Inc. (NYSE: ABBV), Great Ajax Corp. (NYSE: AJX) is a good dividend stock to invest in.
8. Brandywine Realty Trust (NYSE: BDN)
Number of Hedge Fund Holders: 12 Dividend Yield: 5.3%
Brandywine Realty Trust (NYSE: BDN) is among the largest publicly traded full-service integrated real estate companies in the US, focusing on the markets of Philadelphia, Austin, and Washington DC. It ranks 8th on our list of REIT dividend stocks with over 5% yields.
This April, Mizuho raised its price target on Brandywine Realty Trust (NYSE: BDN) shares from $12 to $13, with analyst Omotayo Okusanya keeping a Neutral rating on the stock.
In the first quarter of 2021, Brandywine Realty Trust (NYSE: BDN) had an FFO of $0.35, beating estimates by $0.01. The company's revenue was $120.77 million, missing estimates by $3.88 million. Brandywine Realty Trust (NYSE: BDN) has also gained about 13.45% in the past 6 months and 17.49% year to date.
By the end of the first quarter of 2021, 12 hedge funds out of the 866 tracked by Insider Monkey held stakes in Brandywine Realty Trust (NYSE: BDN) worth roughly $55.1 million. This is compared to 12 hedge funds in the previous quarter with stakes worth approximately $54.6 million.
Like Altria Group, Inc. (NYSE: MO), Verizon Communications Inc. (NYSE: VZ), Visa Inc. (NYSE: V), and AbbVie Inc. (NYSE: ABBV), Brandywine Realty Trust (NYSE: BDN) is a good dividend stock to invest in.
7. Global Medical REIT Inc. (NYSE: GMRE)
Number of Hedge Fund Holders: 18 Dividend Yield: 5.5%
Global Medical REIT Inc. (NYSE: GMRE) is a real estate investment trust that works on acquiring purpose-built specialized healthcare facilities for lease. It ranks 7th on our list of REIT dividend stocks with over 5% yields.
Colliers has begun coverage of Global Medical REIT Inc. (NYSE: GMRE) with a Buy rating and an $18 price target as of July. Additionally, BMO Capital has held an Outperform rating and a $16 price target on the company's shares since this April as well.
In the first quarter of 2021, Global Medical REIT Inc. (NYSE: GMRE) had an FFO of $0.23, beating estimates by $0.01. The company’s revenue was $27.35 million, up 26.33% year over year, and beating estimates by $1.61 million. Global Medical REIT Inc. (NYSE: GMRE) has also gained about 12.08% in the past 6 months and 18.71% year to date.
By the end of the first quarter of 2021, 18 hedge funds out of the 866 tracked by Insider Monkey held stakes in Global Medical REIT Inc. (NYSE: GMRE) worth roughly $36.5 million. This is compared to 8 hedge funds in the previous quarter with a total stake value of about $21.08 million.
Like Altria Group, Inc. (NYSE: MO), Verizon Communications Inc. (NYSE: VZ), Visa Inc. (NYSE: V), and AbbVie Inc. (NYSE: ABBV), Global Medical REIT Inc. (NYSE: GMRE) is a good dividend stock to invest in.
6. W. P. Carey Inc. (NYSE: WPC)
Number of Hedge Fund Holders: 23 Dividend Yield: 5.6%
W. P. Carey Inc. (NYSE: WPC) is among the largest net lease REITs, with net lease properties covering roughly 142 million square feet under its control. The company invests in high-quality single-tenant industrial, warehouse, office, retail, and self-storage properties and ranks 6th on our list of REIT dividend stocks with over 5% yields.
This June, JPMorgan analyst Anthony Paolone upgraded W. P. Carey Inc. (NYSE: WPC) shares from Neutral to Overweight with an $88 price target, raised from $77. Paolone has commented that W. P. Carey Inc. (NYSE: WPC) is a "high-quality" large-cap investment option in the net lease REIT area.
In the first quarter of 2021, W. P. Carey Inc. (NYSE: WPC) had an FFO of $0.91, missing estimates by $0.24. The company’s revenue was $311.17 million, up 0.70% year over year and beating estimates by $6.10 million. W. P. Carey Inc. (NYSE: WPC) has also gained about 16.35% in the past 6 months and 14.69% year to date.
By the end of the first quarter of 2021, 23 hedge funds out of the 866 tracked by Insider Monkey held stakes in W. P. Carey Inc. (NYSE: WPC) worth roughly $162 million. This is compared to 18 hedge funds in the previous quarter with a total stake value of about $197 million.
Like Altria Group, Inc. (NYSE: MO), Verizon Communications Inc. (NYSE: VZ), Visa Inc. (NYSE: V), and AbbVie Inc. (NYSE: ABBV), W. P. Carey Inc. (NYSE: WPC) is a good dividend stock to invest in.
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Disclosure: None. 10 REIT Dividend Stocks with Over 5% Yields is originally published on Insider Monkey.
