These High-Quality REITs Have Yields Over 7%
Real estate investment trusts (REITs) own, operate, or finance income-generating real estate. REITs allow individuals to invest in various types of real estate without having to directly own or manage the properties. REITs typically focus on a specific type of real estate, such as residential, commercial, or industrial, and they are required to distribute a large percentage of their taxable income to shareholders in the form of dividends, making them attractive for income-seeking investors.
Let's take a look at two REITs with yields over 7% that you could buy today.
Easterly Government Properties
Easterly Government Properties (NYSE:DEA) owns and manages a portfolio of properties leased to government agencies and contractors. As of its most recent investor presentation, its portfolio consists of 90 properties in 26 U.S. states containing approximately 8.9 million leased square feet. Its properties are leased to 40 different government agencies, including the FBI, DEA, Department of Defense, National Parks Service, and Social Security Administration.
Easterly currently pays a quarterly dividend of $0.265 per share, equating to an annualized dividend of $1.06 per share and giving its stock a yield of about 8.9% at the time of this writing. The company has also raised its annual dividend five times since 2015, making it a reliable source of dividend growth to go with its high yield.
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Innovative Industrial Properties
Innovative Industrial Properties Inc.(NYSE:IIPR) acquires, owns, and manages specialized properties leased to cannabis companies. As of December 31, 2023, its portfolio consists of 108 properties containing 8.9 million rentable square feet diversified across 19 U.S. states and 30 tenants.
Innovative Industrial Properties currently pays a quarterly dividend of $1.82 per share, equating to an annualized dividend of $7.28 per share and giving its stock a yield of about 7.5% at the time of this writing. The company has also raised its annual dividend payment every year since its 2016 initial public offering, putting it on track for 2024 to mark the 8th consecutive year with an increase.
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