Dec 06, 2023 By Triston Martin
Don't forget about REITs (Real Estate Investment Trusts) if you want to get dividends from your investments. REITs are companies that own apartment buildings, industrial parks, shopping centers, and other types of real estate that bring in money. Some REITs buy mortgages for homes or businesses and other assets that are related to mortgages. You can own real estate without having to buy it and take care of it yourself if you put your money into a REIT. REITs usually pay dividends, which can sometimes be big. This is good for investors who want to make money and see the prices of their investments rise. A well-run REIT portfolio can provide a steady stream of income.
Here are some high-yield REITs to consider in 2022:
PMT (PennyMac Mortgage Investment Trust) invests in residential mortgages, mortgage servicing rights, mortgage-backed securities, and hedge investments related to these things. The company helps people with great credit get new loans. PennyMac owns a onward dividend of $1.88 and having a yield of 16.29%. On October 25, the last price of the stock was $12.65. It has been worth between $10.78 and $20.49 over the past 52 weeks.
Armor Residential REIT Inc. (ARR) buys residential mortgage-backed securities that Fannie Mae, Freddie Mac, or Ginnie Mae have issued or backed. With a forward dividend of $1.20, Armour Residential REIT has a huge yield of 25.21 percent. Still, trading ended on October 25 at $4.96, close to the bottom of its 52-week range of $4.38 to $10.91.
Apollo Commercial Real Estate Finance Inc. (ARI) starts mortgages, mezzanine loans, and other debt investments related to commercial real estate and invests in them. As of September 30, it had paid off the cost of its portfolio as a whole. Apollo Commercial Real Estate Finance has an impressive 14.74% forward yield based on a $1.40 forward dividend. The stock price has ranged from $7.91 to $15.76 over the past 52 weeks. It ended on October 25 at $11.25.
Chimera Investment Corp. (CIM) buys home loans, securities backed by home loans, and securities backed by business loans. The things that the company owns are worth $14 billion. One share of Chimera Investment Corp. stock was only worth $6.42 at the end of business on October 25. It has been anywhere from $4.91 to $16.85 in the last 52 weeks. It has a forward dividend of $0.92, which gives it a yield of 15.59%.
As you might guess from its name, MPW (Medical Properties Trust Inc.) owns hospitals. Other than the government, it owns more hospitals than any other group. Sixty-one percent of its properties are in the U.S., and most are in Europe. Things owned by the company are worth $22.3 billion.
OPI (Office Properties Income Trust) owns buildings, takes care of them, and lets businesses rent space in them. It owns 172 properties, most of which are rented to just one person. These buildings, which are in 32 states and Washington, D.C., have more than 22 million square feet of space.
VICI (VICI Properties Inc.) buys hotels, entertainment, and gaming properties. It owns places like the MGM Grand, the Venetian Resort Las Vegas, and Caesars Palace Las Vegas. The company owns 43 places to gamble, which include more than 58,000 hotel rooms and more than 450 restaurants, bars, and other places to have fun. At the end of October 25, the stock price of VICI was $31. In the last 52 weeks, it has been between $26.33 and $36, which is a pretty small range, given how volatile the market is. It will pay a dividend of $2.0 in the future, which gives it a yield of 5.1%.
GLPI (Gaming and Leisure Properties Inc.) owns and runs 57 casinos in seventeen states, including Bally's Casino and Ameristar Black Hawk– Dover Downs in Delaware, Plainridge Park Casino in Massachusetts, Hollywood Casino Aurora in Illinois, Belterra Casino Resort in Indiana, Isle of Capri Casino in Iowa, and Black Hawk in Colorado, among others. The last price for Gaming and Leisure Properties was $48 on October 25. It had a $3 forward dividend, which gave it a yield of 6.14 percent. This price was in the middle of its range over the past 52 weeks, from $42 to $53.
Real estate investment trusts can be hard to figure out regarding their stock price and dividends. But real estate is often a good way to protect against inflation, which makes it a good choice when stocks aren't. And because REITs pay you money and their prices go up, you might want to include them in your portfolio.