2 Warehouse REITs Yielding Over 3%
Industrial real estate investment trusts (REITs) own and manage income-generating industrial properties, such as warehouses, distribution centers, logistics facilities, and manufacturing plants. Industrial REITs generate income by leasing the properties.
Investors in industrial REITs can benefit from the demand for space in the logistics and manufacturing sectors. The growth of e-commerce and the need for efficient supply chain management have contributed to the growth of the space in recent years. Similar to other REITs, industrial REITs are required to distribute a significant portion of their income to shareholders in the form of dividends.
If you're interested in investing in industrial REITs, here are two you could buy today.
Americold Realty Trust
Americold Realty Trust (NYSE:COLD) owns and/or operates 243 temperature-controlled warehouses containing approximately 1.5 billion refrigerated cubic feet of storage across North America, Europe, Asia-Pacific, and South America. Its warehouses are a crucial component of the supply chain that connects food producers, processors, distributors, and retailers to consumers. Some of Americold's largest clients include General Mills (NYSE:GIS), Conagra Brands (NYSE:CAG), Lamb Weston (NYSE:LW), and Kraft Heinz (NASDAQ:KHC).
Americold currently pays a quarterly dividend of $0.22 per share, equating to $0.88 per share annually, giving its stock a yield of about 3.1% at today's levels. It's also worth noting that the company has raised its annual dividend three times since its 2018 initial public offering.
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Stag Industrial
Stag Industrial (NYSE:STAG) owns and operates 568 industrial properties in 41 states consisting of approximately 112 million square feet. It counts Amazon (NASDAQ:AMZN), FedEx (NYSE:FDX), XPO Logistics (NYSE:XPO), and WestRock (NYSE:WR) as four of its largest clients.
Stag currently pays a monthly dividend of $0.123333 per share, equating to about $1.48 per share annually, giving its stock a yield of about 3.9% at today's levels. It's also important to note that Stag has raised its annual dividend every year since its initial public offering in 2011, making it qualify as both a high-yield and dividend-growth stock.
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