Top Dividend Stocks to Buy from UBS U.S Select REIT Portfolio: UDR, DDR, Simon, Prologis and More

24/7 Wall St.

Real estate is always a solid addition to a diversified portfolio. It also is not as correlated to the stock market as other alternative type investments. The portfolio managers for the UBS U.S Select REIT portfolio continue to see a muted total return environment for REITs and commercial real estate over the next few years, as solid property level cash flow growth is offset by falling valuations due to rising interest rates. They continue to prefer REITs with a combination of low leverage, above-average net operating income (NOI) growth and value-added development capabilities. We screened their list of stocks to buy by sector and looked for the top dividend yields available.

Nine Cities Running Out of Water

Alexandria Real Estate Equities Inc. (ARE) is the top name to buy in the office sector. The company has 159 properties, including 156 properties located in nine states in the United States and three properties located in Canada. The UBS price target for the stock is $77. The Thomson/First Call estimate is at $78. Investors are paid a 3.8% dividend. Remember, REIT dividends may contain return of principal.

The Most Oil-Rich States

UDR Inc. (UDR) is the top yielding stock to buy in the apartment sector. The company reported solid second-quarter earnings back in July. Total revenue during the quarter was $191.8 million, up 6.5% year-over-year and exceeding the consensus estimate of $189 million as well. UBS has a $27 price objective, and the consensus number is at $26. Shareholders are paid a 3.8% dividend.

Twelve Things Not to Do If You Win the Lottery

DDR Corp. (DDR) is the top name to buy in the shopping center sector. The company engages in acquiring, developing, redeveloping, owning, leasing and managing shopping centers, mini-malls and lifestyle centers. It reported second-quarter earnings in line with what Wall Street expected and up 8% from a year ago. The UBS price target for the stock is at $19, the same as the consensus target. Investors are paid a 3.2% dividend.

Simon Property Group Inc. (SPG) is the top regional mall stock to buy, and the 900-pound gorilla in the REIT world. Simon Property reported second-quarter funds from operations (FFO) per share of $2.11, beating the estimate by $0.04 per share. FFO per share jumped 11.6% over the prior year. The company also reported revenue of $1.24 billion, which was in line with expectations. UBS price target for this elite name is $192, while the consensus target is posted at $186.50. Shareholders are paid a 2.9% dividend.

America's Worst Companies to Work For

Prologis Inc. (PLD) is the top name to buy in the industrial REIT sector. The company just completed a gigantic $1.25 billion guaranteed debt offering. Included in the aggregate amount are $400 million of notes due February 15, 2019, that have an annual coupon rate of 2.75% and were priced at 99.965% of the principal amount, and $850 million of notes due August 15, 2023, that have an annual coupon rate of 4.25% and were priced at 99.742% of the principal amount. The company is using the funds to repay higher coupon debt. UBS has a $44 price target, but the consensus number was unavailable. Shareholders are paid a 2.9% dividend.

Education Realty Trust (EDR) is the top name in student housing. The company recently inked a deal with the University of Kentucky to build additional on-campus housing. Last year it built on-campus housing for Mansfield University. It also announced a 10% dividend hike. UBS has a $11 price target, and the consensus target is $11 as well. Investors are paid a solid 4.8% dividend.

While the UBS analysts clearly prefer multifamily names as the best relative value in the sector, they carefully screen the rest of the REITs in their universe. These top names to buy not only add diversity to a portfolio, they also add consistent and growing income.

The Most Dangerous Cities in America

Related Articles


View Comments (0)

Recommended for You

  • Tycoon buys 30 Rolls-Royces for Macau hotel

    A Hong Kong tycoon has placed the biggest ever order for Rolls-Royce cars, agreeing to buy 30 Phantoms to chauffeur guests at a luxury resort he's building in the global gambling capital of Macau. Stephen Hung's $20 million purchase surpasses the 14 Phantoms bought by Hong Kong's Peninsula Hotel in…

    Associated Press
  • 1 Tip To Lose Belly Fat

    It's Hollywood's Hottest Diet And Gets Rid Of Stubborn Fat Areas Like Nothing Else.

  • Before You Buy Alibaba, Check Out 4 Top China Stocks

    Before You Buy Alibaba, Check Out 4 Top China Stocks While investors gear up for Alibaba Group 's (BABA) hotly anticipated initial public offering, don't forget about other Chinese stocks that are worth keeping an eye on. Today's Young Guns Screen of

    Investor's Business Daily
  • Only 4 states will see cuts to food stamps

    Cuts to the nation's food stamp program enacted this year are only affecting four states, far from the sweeping overhaul that Republicans had pushed, an Associated Press review has found. As a result, it's unclear whether the law will realize the estimated $8.6 billion in savings over 10 years that…

    Associated Press
  • "The Retiree Next Door": How successful retirees stretch their savings

    "The Retiree Next Door": How successful retirees stretch their savingsBy the time she hit her late 40s, Toni Eugenia wasn’t sure she would ever be able to retire. Eugenia, 56, a pharmacy technician who lived in Houston, was nearly $200,000 in debt and

    Yahoo Finance
  • SHOE COMPANY: Our CEO Just Disappeared And Most Of The Money Is Gone

    "and like that: he's gone." This is an actual headline from a company press release: "CEO and COO disappeared, most of the company's cash missing." (Via FastFT) In a statement, German-based shoe company Ultrasonic said its CFO,  Chi Kwong Clifford Chan, has been unable to reach the company's CEO,…

    Business Insider
  • Apple to unveil new iPads, operating system on Oct. 21 : report

    The company plans to unveil the sixth generation of its iPad and the third edition of the iPad mini, as well as its operating system OS X Yosemite, which has undergone a complete visual overhaul, the Internet news website said. Trudy Muller, a spokeswoman for Apple, declined to comment. The iPad is…

  • Play

    Citi, Bank of America Offer Discounted Mortgages

    Citigroup and Bank of America will offer mortgages at discounted interest rates to help borrowers with low incomes or subprime credit. AnnaMaria Andriotis joins MoneyBeat. Photo: Getty.

    WSJ Live
  • Best Womens Wrinkle Creams 2014

    Mom reveals simple wrinkle solution that has researchers very excited. Try this free solution today to look and feel years younger.

  • Margaritaville casino owners seek bankruptcy

    The owner of Biloxi's Margaritaville casino has filed for Chapter 11 bankruptcy protection Tuesday, only hours before a hearing where the landlord aimed to seize the property. The filing by MVB Holding LLC in U.S. Don Dornan, a lawyer for landlord Clay Point LLC, said the company had planned to ask…

    Associated Press
  • Here's What Mark Cuban Wishes He Knew About Money In His 20s

    Cuban is the owner of the Dallas Mavericks basketball team. Billionaire investor and entrepreneur Mark Cuban is generous with his advice. When we asked him what he wishes he'd known about money in his 20s, he said:

    Business Insider
  • Embraer to sell 50 E-175 jets to Republic in $2.1 billion deal

    Brazil's Embraer SA, the world's third largest commercial planemaker, said on Wednesday it booked a firm order from U.S. The deal, which will be included in Embraer's order book for the third quarter, is valued at $2.1 billion, the planemaker said in a securities filing. The planes will be operated…

  • Gold loses luster on Fed; Barclays cuts forecast

    Barclays cuts gold forecasts, sees increasingly bearish backdrop Bloomberg MA MB MC MD ME SAN FRANCISCO (MarketWatch) — Gold prices dipped Wednesday on concerns about a stronger dollar ahead of the Federal Reserve policy statement and in response to Barclays lowering its gold forecast.

  • Play

    What the Fed Meeting Means for Bonds

    Janet Yellen & Co. are expected to hint at their timetable for raising interest rates. Here's how investors should prepare ahead of the meeting.

    WSJ Live
  • Fed renews zero rate pledge, but hints at steeper rate hike path

    The Federal Reserve on Wednesday renewed its pledge to keep interest rates near zero for a "considerable time," but also indicated it could raise borrowing costs faster than expected when it starts moving. In a statement after a two-day meeting of its policy-setting Federal Open Market Committee,…

  • Tired of Living Paycheck to Paycheck?

    New website reveals how to save $1,000's when you're living paycheck to paycheck. See exactly how.

    AdChoices Media ForceSponsored
  • Billionaire Investor Says Chinese People Work Harder And Western Companies Could Face Deep Trouble After Alibaba IPO

    Michael Moritz, the chairman of VC firm Sequoia Capital, is a huge fan of Chinese internet companies and reiterated his enthusiasm for the Chinese market in an interview with The Wall Street Journal Wednesday. The billionaire investor described the Alibaba IPO as a “major landmark event” that is as…

    Business Insider
  • Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More

    Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More Stocks were firm on Wednesday morning ahead of the FOMC meeting outcome. Tuesday’s rally may have sparked higher interest again, and investors are looking for bargains

    24/7 Wall St.
  • Boeing may have outfoxed Musk, but it could have bigger problems

    Elon Musk is arguably one of the greatest entrepreneurial minds of the 21st Century, but he was outsized an old school aerospace giant. Boeing won the bulk of NASA’s contract for a space taxi.  One of the other companies vying for the deal is SpaceX, the company headed by Tesla’s Musk, will get a…

    Talking Numbers
  • The Government Keeps Helping People Buy Failing Cold Stone Creamerys

    Would you loan someone money to buy a Cold Stone Creamery franchise if you knew that more than a quarter of those loans default? Over the last decade, franchisees in the Cold Stone Creamery ice cream chain defaulted on 29 percent of working-capital loans backed by the government, costing taxpayers…

  • Romney-Sized IRAs Scrutinized as Government Studies Taxes

    The preliminary report attaches data to an issue that drew attention during the 2012 presidential campaign, when Republican nominee Mitt Romney reported an IRA worth $20 million to $102 million. Senate Finance Committee Chairman Ron Wyden said many of these "massive" accounts come from deals…

  • Russian billionaire placed under house arrest

    A billionaire Russian tycoon was placed under house arrest Tuesday in a money-laundering case that has drawn comparisons with a government crackdown on Russia's Yukos oil company more than a decade ago. The Investigative Committee, Russia's top investigative agency, said that Vladimir Yevtushenkov,…

    Associated Press
  • New Site Releases Everyone's Past Online!

    A new site has made it simple to find the truth out about anyone's Past online. It's as easy as typing in a Name and selecting a State!

    AdChoicesInstant CheckmateSponsored
  • Facebook Is Hiding Important Information From Investors

    Facebook Is Hiding Important Information From Investors On July 23, when Facebook reported its earnings for the second quarter, the company stunned everyone. Revenues were $2.68 billion, up 67% from the same quarter during the year

    Business Insider