The old saying “different strokes for different folks” certainly rings true in the stock market.
Some investors prefer growth stocks like Tesla Inc. that are volatile but have produced years of outstanding appreciation. Other folks prefer less volatile stocks like Johnson & Johnson whose growth may be slower but also add dividends of 2% to 3% annually to the total performance.
In addition, there are income investors, who strictly look for stocks that will provide high-yield dividends year after year. With no plans for selling, they don’t really care about stock price movement as long as the large dividends continue every quarter to pay their bills.
For these income-loving folks, here are three real estate investment trust (REIT) stocks with massive dividend yields that could pay the bills for a long time to come:
Office Properties Income Trust (NYSE: OPI) is a Massachusetts-based real estate company that owns, leases and manages office space. While the office REIT sector has had its share of problems since 2020, many of Office Property Income’s tenants are solid, and its portfolio includes government offices. Office Properties Income opened today at $17.56, and with a current quarterly dividend of 55 cents, which yields 12.5% annually.
Office Properties Income was a $48 stock four years ago, but the last three years have seen declining revenue and earnings per share (EPS) that hurt its price performance. If more workers return to office environments going forward, Office Properties Income could one day return to its former levels. But even if the stock only trades sideways, income investors could have a solid dividend return every quarter.
Global Net Lease Inc. (NYSE: GNL) is a diversified, international commercial property REIT with 311 properties in 11 countries. Based in New York City, Global Net’s 140 tenants are spread across 50 different industries. The company disappointed the Street with 43 cents per share funds from operation (FFO) and $95 million in revenue last quarter, both down from a year earlier. However, its current leased rate is a stellar 99.9%, and its average lease term is 8.3 years.
Global Net Lease has done quite well since the COVID-19 crash in 2020, storming back from a low of $6.65 to a high of $17.27 by June 2021. With an opening price Sept. 7 of $13.27 and an annual dividend of $1.60, the stock is sporting a lofty current dividend yield of 12%. Notwithstanding the recent negative quarter, the diversification of this REIT gives it a long-term advantage for income investors seeking a very high yield.
Brandywine Realty Trust (NYSE: BDN) is a Philadelphia-based REIT that owns, develops, leases and manages 175 commercial properties from Philadelphia to Austin, Texas.
Like many REITs this year, rising interest rates and the threat of recession have slashed the stock price by a considerable margin. However, second-quarter FFO of 34 cents per share was 2 cents higher than one year ago, while revenue of $124.04 million also bested the second quarter of 2021.
These results provide optimism that Brandywine could show improvement in future quarters. Brandywine has a 52-week high of $14.88, but the current price of $8.03 now yields 9.46%. The quarterly dividend of 19 cents has been a stable but slow grower over the past five years. Nonetheless, income investors have a lot to like about this high-yielding stock.
This week’s private markets real estate highlights:
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