In this article, we will be taking a look at 10 high yield monthly REIT Dividend Stocks to buy. To skip our detailed analysis of dividend investing, you can go directly to see the 5 High Yield Monthly REIT Dividend Stocks to Buy.
After the outbreak of the coronavirus pandemic, came the closure of businesses, schools, offices, restaurants, and others, resulting in the real estate sector taking a major hit. With the situation initially seeming increasingly bleak, the focus began shifting away from real estate investment trusts (REITs) and real estate stocks, while the market, in general, continued performing poorly. However, as the pandemic subsided and vaccination rates began rising, the real estate sector became one of the few that began to rapidly recover and profit. Hence, while regular dividend stocks like Altria Group, Inc. (NYSE: MO), Moody’s Corporation (NYSE: MCO), Medtronic plc (NYSE: MDT), and Pfizer Inc. (NYSE: PFE) were typically considered more popular in investor circles, REIT dividend stocks began giving them a run for their money just as well.
During the first quarter of 2021, the REIT sector’s earnings began truly recovering, according to Nareit, the National Association of Real Estate Investment Trusts. All equity REITs saw rising funds-from-operations (FFOs) during the first quarter, demonstrating a 2% gain. This slow growth finally led to REIT total returns fully recovering as of May 21st, 2021. One of the reasons for this recovery has been asserted to be the resilience of REITs themselves, which have raised about $400 billion of common equity from 2009 to 2019, to be able to financially support themselves and their eventual growth through difficult economic times. With REITs thus harboring strong balance sheets themselves, these companies have managed to aptly handle any risks of financial distress brought about by the outbreak of the coronavirus pandemic, alongside reducing further possible sensitivity to interest rate movements.
For investors, then, the above has proven to be a positive development. As such, it has also resulted in optimistic developments for traditional REITs. These companies were historically treated as no more than variables used to diversify investor portfolios, however, come 2021, they have become much more popular among investor circles for two main reasons: firstly, their ability to act as hedges against inflation, and secondly, their typically high dividend yields acting to attract income investors. Add onto this the fact that these stocks have been outperforming the benchmark S&P 500 index so far in 2021, and it becomes clear why more investors are eyeing REITs as viable additions to their portfolios. After all, the Wall Street Journal has mentioned that the FTSE Nareit All REITs Index, had a total return of about 26.05% as of August 2021, compared to a 17.99% total return for the S&P 500 index, both values inclusive of dividends. As such, investing in real estate investment trusts is becoming a more prominent and profitable strategy for many.
Investing has become difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Without further ado, let’s take a look at the 10 high yield monthly REIT dividend Stocks to buy.
Our Methodology
We have selected monthly dividend stocks in the REIT sector, with dividend yields of 2% and above. Insider Monkey tracks the data of about 873 hedge funds, and we have also used this data to pick dividend stocks that are highly popular among hedge funds today. For each stock we have mentioned its yield and the number of hedge funds holding a stake in it, ranking them from the lowest to the highest dividend yield. Finally, we have used analysts’ ratings to determine which stocks are favorably placed in analyst and investor circles, picking stocks with mostly positive ratings and strong fundamentals.
High Yield Monthly REIT Dividend Stocks to Buy
10. Gladstone Land Corporation (NASDAQ: LAND)
Number of Hedge Fund Holders: 6
Dividend Yield: 2.28%
Gladstone Land Corporation (NASDAQ: LAND), a publicly traded real estate investment trust, acquires and owns farmland and farm-related properties in US agricultural markets. The company ranks 10th on our list of high yield dividend monthly REIT stocks to buy, and has been paying monthly dividends to its shareholders since 2013.
As of this May, Berenberg analyst Nate Crossett has a Hold rating on shares of Gladstone Land Corporation (NASDAQ: LAND), alongside a raised price target of $25, compared to the previous $21 target.
In the second quarter of 2021, Gladstone Land Corporation (NASDAQ: LAND) had an FFO of $0.13, missing estimates by $0.01. The company’s revenue was $16.89 million, up 33.67% year over year and beating estimates by $0.28 million. Gladstone Land Corporation (NASDAQ: LAND) has gained 28.29% in the past 6 months and 66.27% year to date.
By the end of the second quarter of 2021, 6 hedge funds out of the 873 tracked by Insider Monkey held stakes in Gladstone Land Corporation (NASDAQ: LAND) worth roughly $5.4 million. This is compared to 6 hedge funds in the previous quarter with a total stake value of approximately $7.1 million.
Like Altria Group, Inc. (NYSE: MO), Moody’s Corporation (NYSE: MCO), Medtronic plc (NYSE: MDT), and Pfizer Inc. (NYSE: PFE), Gladstone Land Corporation (NASDAQ: LAND) is a good stock to invest in.
9. STAG Industrial, Inc. (NYSE: STAG)
Number of Hedge Fund Holders: 15
Dividend Yield: 3.48%
STAG Industrial, Inc. (NYSE: STAG) acquires and operates single-tenant, industrial properties throughout the US. The company ranks 9th on our list of high yield monthly REIT stocks to buy and has developed an investment strategy that allows investors to balance income and growth.
RBC Capital raised the price target on shares of STAG Industrial, Inc. (NYSE: STAG) to $46 this August, while reiterating an Outperform rating on the stock.
In the second quarter of 2021, STAG Industrial, Inc. (NYSE: STAG) had an FFO of $0.52, beating estimates by $0.02. The company’s revenue was $138.43 million, up 17.69% year over year and beating estimates by $4.07 million. STAG Industrial, Inc. (NYSE: STAG) has gained 33.38% in the past 6 months and 40.45% year to date.
By the end of the second quarter of 2021, 15 hedge funds out of the 873 tracked by Insider Monkey held stakes in STAG Industrial, Inc. (NYSE: STAG) worth roughly $232 million. This is compared to 17 hedge funds in the previous quarter with a total stake value of approximately $173 million.
Like Altria Group, Inc. (NYSE: MO), Moody’s Corporation (NYSE: MCO), Medtronic plc (NYSE: MDT), and Pfizer Inc. (NYSE: PFE), STAG Industrial, Inc. (NYSE: STAG) is a good stock to invest in.
8. Agree Realty Corporation (NYSE: ADC)
Number of Hedge Fund Holders: 18
Dividend Yield: 3.52%
Agree Realty Corporation (NYSE: ADC) is a publicly traded REIT that acquires and develops properties net leased to industry-leading retail tenants. It ranks 8th on our list of high yield monthly REIT stocks to buy, and as of September last year, owned and operated about 1,027 properties in 45 states.
Mizuho the price target on shares of Agree Realty Corporation (NYSE: ADC) from $73 to $79 this August, while reiterating a Neutral rating on the stock.
In the second quarter of 2021, Agree Realty Corporation (NYSE: ADC) had an FFO of $0.89, beating estimates by $0.01. The company’s revenue was $82.55 million, up 43.47% year over year and beating estimates by $0.83 million. Agree Realty Corporation (NYSE: ADC) has gained 17.66% in the past 6 months and 15.03% year to date.
By the end of the second quarter of 2021, 18 hedge funds out of the 873 tracked by Insider Monkey held stakes in Agree Realty Corporation (NYSE: ADC) worth roughly $187 million. This is compared to 18 hedge funds in the previous quarter with a total stake value of approximately $200 million.
Like Altria Group, Inc. (NYSE: MO), Moody’s Corporation (NYSE: MCO), Medtronic plc (NYSE: MDT), and Pfizer Inc. (NYSE: PFE), Agree Realty Corporation (NYSE: ADC) is a good stock to invest in.
7. Realty Income Corporation (NYSE: O)
Number of Hedge Fund Holders: 23
Dividend Yield: 3.95%
Realty Income Corporation (NYSE: O) invests in free-standing, single-tenant, commercial properties, subject to NNN leases, in the US, Puerto Rico, and the UK. The company ranks 7th on our list of high yield monthly REIT stocks to buy
Mizuho holds a Buy rating on shares of Realty Income Corporation (NYSE: O) as of this August, and has also raised its price target on the stock to $81.
In the second quarter of 2021, Realty Income Corporation (NYSE: O) had an FFO of $0.88, beating estimates by $0.01. The company’s revenue was $464.28 million, up 19.28% year over year and beating estimates by $31.06 million. Realty Income Corporation (NYSE: O) has gained 19.94% in the past 6 months and 20.97% year to date.
By the end of the second quarter of 2021, 23 hedge funds out of the 873 tracked by Insider Monkey held stakes in Realty Income Corporation (NYSE: O) worth roughly $221 million. This is compared to 18 hedge funds in the previous quarter with a total stake value of approximately $183 million.
Like Altria Group, Inc. (NYSE: MO), Moody’s Corporation (NYSE: MCO), Medtronic plc (NYSE: MDT), and Pfizer Inc. (NYSE: PFE), Realty Income Corporation (NYSE: O) is a good stock to invest in.
6. SL Green Realty Corp. (NYSE: SLG)
Number of Hedge Fund Holders: 21
Dividend Yield: 5.13%
SL Green Realty Corp. (NYSE: SLG), the largest office REIT in Manhattan, is next on our list of high yield monthly REIT stocks to buy. The company acquires, manages, and maximizes the value of Manhattan commercial properties, and ranks 6th on our list.
Deutsche Bank raised its price target on shares of SL Green Realty Corp. (NYSE: SLG) to $77, compared to the previous target of $66 this June, while reiterating a Hold rating on the stock.
In the second quarter of 2021, SL Green Realty Corp. (NYSE: SLG) had an FFO of $1.60, missing estimates by $0.02. The company’s revenue was $184.61 million, beating estimates by $2.09 million. SL Green Realty Corp. (NYSE: SLG) has gained 1.4% in the past 6 months and 21.29% year to date.
By the end of the second quarter of 2021, 21 hedge funds out of the 873 tracked by Insider Monkey held stakes in SL Green Realty Corp. (NYSE: SLG) worth roughly $144 million. This is compared to 21 hedge funds in the previous quarter with a total stake value of approximately $162 million.
Like Altria Group, Inc. (NYSE: MO), Moody’s Corporation (NYSE: MCO), Medtronic plc (NYSE: MDT), and Pfizer Inc. (NYSE: PFE), SL Green Realty Corp. (NYSE: SLG) is a good stock to invest in.
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Disclosure: None. 10 High Yield Monthly REIT Dividend Stocks to Buy is originally published on Insider Monkey.
