8 High-Dividend REITs To Invest In Now
Written by
Karen Doyle
Edited by
Susan Kim
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If you’re looking for dividend income from your investments, don’t overlook real estate investment trusts. REITs are companies that typically own real estate investments that produce income, such as shopping centers, apartment buildings and industrial parks. Some REITs invest in residential or commercial mortgages and related assets. Investing in a REIT lets you own real estate without having to purchase and maintain properties yourself.
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REITs often pay dividends, sometimes significant ones. This is a benefit for investors who are looking for income from their investments, in addition to price appreciation. A properly managed REIT portfolio can provide an ongoing stream of income.
Which REITs Pay High Dividends?
Here are some high-dividend REITs that are worth considering in 2024:
| REIT | Dividend Yield |
|---|---|
| PennyMac Mortgage Investment Trust (PMT) | 11.70% |
| Armour Residential REIT Inc. (ARR) | 14.90% |
| Apollo Commercial Real Estate Finance Inc. (ARI) | 14.21% |
| Chimera Investment Corp. (CIM) | 11.50% |
| Medical Properties Trust Inc. (MPW) | 11.93% |
| SL Green Realty Corp. (SLG) | 5.62% |
| VICI Properties Inc. (VICI) | 5.91% |
| Gaming and Leisure Properties Inc. (GLPI) | 6.99% |
Mortgage REITs
Mortgage REITs invest in residential and/or commercial mortgages and, in some cases, mortgage-backed securities. They rarely, if ever, own or manage property themselves.
1. PennyMac Mortgage Investment Trust (PMT)
PennyMac Mortgage Investment Trust invests in residential mortgages, mortgage servicing rights and mortgage-backed securities, as well as hedge investments that relate to these. The company works with prime credit quality loans that are newly originated.
PennyMac has a forward dividend of $1.60, with a yield of 11.70%. Shares closed at $13.53 on June 11 and have traded between $10.52 and $15.89 over the past 52 weeks.
2. Armour Residential REIT Inc. (ARR)
Armour Residential REIT Inc. invests in residential mortgage-backed securities that are issued or guaranteed by Fannie Mae or Freddie Mac or are guaranteed by Ginnie Mae.
Armour Residential REIT has a forward dividend of $2.88, yielding an eye-popping 14.90%. It closed at $19.02 on June 11, near the middle of its 52-week range of $13.32 to $27.00.
3. Apollo Commercial Real Estate Finance Inc. (ARI)
Apollo Commercial Real Estate Finance Inc. originates and invests in mortgages, mezzanine loans and other debt investments related to commercial real estate. Its portfolio has an amortized cost of $8.4 billion as of March 31.
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Apollo Commercial Real Estate Finance has an impressive $1.40 forward dividend, yielding 14.21%. Shares have traded between $9.22 and $12.74 over the past 52 weeks, closing at $9.74 on June 11.
4. Chimera Investment Corp. (CIM)
Chimera Investment Corp. invests in residential mortgage loans, residential mortgage-backed securities and commercial mortgage-backed securities. The REIT had $12.55 billion in assets as of March 31.
Closing at $11.37 per share on June 11, Chimera Investment Corp. stock has a 52-week range of $11.29 to $19.47. Its forward dividend is $1.32, yielding 11.50%.
Commercial REITs
Some REITs specialize in commercial properties, such as shopping malls, industrial parks or hospitals.
5. Medical Properties Trust Inc. (MPW)
As its name would imply, Medical Properties Trust Inc. owns hospitals and medical buildings. In fact, it is the second-largest nongovernment owner of hospitals in the world. Over half (60%) of its properties are in the United States, and most of the rest are in Europe. Its portfolio is worth $17.3 billion.
On June 11, Medical Properties Trust closed at $4.93 per share. Its 52-week range is $2.92 to $10.74 per share. The company has a forward dividend of $0.60, which translates to a yield of 11.93%.
6. SL Green Realty Corp. (SLG)
SL Green Realty Corp. is New York City’s largest commercial landlord, and its in-house property management teams directly manage over 80% of its NYC portfolio. As of March 31, SL Green Realty held interest in 57 buildings with a total of 32.4 million square feet, 28.7 million of which are in Manhattan.
On June 11, SL Green closed at $57.12, near the top of its $23.22-to-$58.46 range over the last 52 weeks. Its $3 forward dividend represents a 5.62% yield.
Casino REITs
Casinos are a popular investment for REITs, and they’re often quite lucrative because the house always wins. In addition to the casinos themselves, these REITs often invest in hotels, restaurants and entertainment venues.
7. VICI Properties Inc. (VICI)
VICI Properties Inc. invests in hospitality, entertainment and gaming properties, and it owns such recognizable properties as Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas. In all, the company owns 54 gaming facilities, which include approximately 60,300 hotel rooms and over 500 restaurants and entertainment venues.
VICI closed at $28.14 on June 11, and its share price in the past 52 weeks has ranged from $26.62 to $33.40 — a relatively narrow range given the market volatility. Its forward dividend is $1.66, yielding 5.91%.
8. Gaming and Leisure Properties Inc. (GLPI)
Gaming and Leisure Properties Inc. owns and operates 65 gaming and related facilities in 20 states. These include Ameristar Black Hawk and Bally’s Casino – Black Hawk in Colorado, Bally’s Dover Casino in Delaware, Plainridge Park Casino in Massachusetts, Hollywood Casino Aurora in Illinois, Belterra Casino Resort in Indiana and Isle Casino Hotel in Iowa, among many others.
With a forward dividend of $3.04, resulting in a yield of 6.99%, Gaming and Leisure Properties closed on June 11 at $43.43. This price was toward the lower end of its relatively narrow 52-week range of $41.80 to $50.59.
Takeaway
Real estate investment trusts can be volatile in terms of their stock price and their dividends. However, real estate has a tendency to act as a hedge against inflation, making it attractive in times when equities may not be. And since REITs with dividends provide income as well as price appreciation, there may be a place for them in your portfolio.
Daria Uhlig contributed to the reporting for this article.
Data is accurate as of June 12, 2024 and is subject to change.
