In this article, we will be taking a look at 10 quarterly dividend REIT stocks to buy. To skip our detailed analysis of dividend investing, you can go directly to see the 5 Quarterly Dividend REIT Stocks to Buy.
Generally speaking, many investors treat real estate investment trusts, or REITs, as stocks that are just serving the purpose of diversifying their portfolios. Apart from this typical reason, another factor that attracts investors to REITs is their typically high dividend yields, which often beat the yields of famous dividend stocks like Pepsico, Inc. (NASDAQ: PEP), AT&T Inc. (NYSE: T), Target Corporation (NYSE: TGT) and Chevron Corporation (NYSE: CVX). However, come 2021, REITs have been steadily gaining popularity and investor attention for more reasons than simply the two listed above.
According to the Wall Street Journal this August, for instance, REITs have been among the most popular stocks in 2021. The FTSE Nareit All REITs Index, which is reputably the broadest US REIT index and has a market capitalization of about $1.4 trillion, brought in a total return of about 26.05% by July 31st, as compared to a total return of only 17.99% for the benchmark S&P 500 index, on the other hand. These total returns are inclusive of dividends. This positive performance has thus resulted in more investors eyeing REIT dividend stocks with eager eyes and ever-growing enthusiasm, resulting in about $87 billion being held in assets by 35 REIT exchange-traded funds, for instance.
Todd Rosenbluth, the head of ETF and mutual-fund research at CFRA, has also shed light on another reason that is explaining the growing popularity of REIT stocks among investors today, however. With inflation concerns having gripped investors and others in the US and generally across the globe, the real estate sector, and real estate investment trusts more specifically, benefitted greatly and received much positive attention. The reason for this lies in the fact that historically, and presently, real estate and REITs have been considered useful and foolproof hedges against inflation. Finally, let’s not forget the fact that lower bond yields also make REITs more attractive for income investors in particular, with the added reality that REITs are typically required to pay out 90% of taxable income to shareholders in the form of dividends as well, according to Rosenbluth.
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 86 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 86 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.
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Without further ado, let’s take a look at the 10 quarterly dividend REIT stocks to buy.
Our Methodology
We have selected quarterly dividend REIT stocks with 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 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.
Quarterly Dividend REIT Stocks to Buy
10. Innovative Industrial Properties, Inc. (NYSE: IIPR)
Number of Hedge Fund Holders: 15
Dividend Yield: 2.24%
Innovative Industrial Properties, Inc. (NYSE: IIPR), a self-advised Maryland-based corporation, works to acquire, own, and manage specialized properties. The company ranks 10th on our list of quarterly dividend REITs to buy. It is based in San Diego, California.
Craig-Hallum raised its price target on shares of Industrial Properties, Inc. (NYSE: IIPR) this August from $175 to $240, while reiterating a Hold rating on the stock.
In the second quarter of 2021, Innovative Industrial Properties, Inc. (NYSE: IIPR) had an FFO of $1.56, beating estimates by $0.07. The company’s revenue was $48.87 million, up 100.72% year over year and beating estimates by $2.66 million.
By the end of the second quarter of 2021, 15 hedge funds out of the 873 tracked by Insider Monkey held stakes in Innovative Industrial Properties, Inc. (NYSE: IIPR) worth roughly $200 million. This is compared to 13 hedge funds in the previous quarter with a total stake value of approximately $192 million.
9. Americold Realty Trust (NYSE: COLD)
Number of Hedge Fund Holders: 16
Dividend Yield: 2.36%
Americold Realty Trust (NYSE: COLD) owns, operates, acquires, and develops temperature-controlled warehouses. The company is based in Atlanta, Georgie, and manages about 185 temperature-controlled warehouses in the US, Australia, New Zealand, Canada, and Argentina. The company ranks 9th on our list of quarterly dividend REIT stocks to buy.
Baird holds an Outperform rating on shares of Americold Realty Trust (NYSE: COLD) as of this August, alongside a price target of $42.
In the second quarter of 2021, Americold Realty Trust (NYSE: COLD) had an FFO of $0.15, missing estimates by $0.14. The company’s revenue was $654.71 million, up 35.68% year over year and beating estimates by $4.92 million.
By the end of the second quarter of 2021, 16 hedge funds out of the 873 tracked by Insider Monkey held stakes in Americold Realty Trust (NYSE: COLD) worth roughly $530 million. This is compared to 16 hedge funds in the previous quarter with a total stake value of approximately $804 million.
8. CubeSmart (NYSE: CUBE)
Number of Hedge Fund Holders: 18
Dividend Yield: 2.54%
CubeSmart (NYSE: CUBE), a self-administered and self-managed real estate investment trust, is next on our list of quarterly dividend REIT stocks to buy. The company ranks 8th and is one of the top three owners and operators of self-storage properties in the US.
This August, Truist raised the price target on CubeSmart (NYSE: CUBE) shares from $48 to $53. The firm also reiterated a Hold rating on the stock.
In the second quarter of 2021, CubeSmart (NYSE: CUBE) had an FFO of $0.50, beating estimates by $0.03. The company’s revenue was $199.25 million, up 21.64% year over year and beating estimates by $4.83 million.
By the end of the second quarter of 2021, 18 hedge funds out of the 873 tracked by Insider Monkey held stakes in CubeSmart (NYSE: CUBE) worth roughly $350 million. This is compared to 25 hedge funds in the previous quarter with a total stake value of approximately $350 million.
Like Pepsico, Inc. (NASDAQ: PEP), AT&T Inc. (NYSE: T), Target Corporation (NYSE: TGT) and Chevron Corporation (NYSE: CVX), CubeSmart (NYSE: CUBE) is a good stock to invest in.
7. STORE Capital Corporation (NYSE: STOR)
Number of Hedge Fund Holders: 13
Dividend Yield: 3.98%
STORE Capital Corporation (NYSE: STOR), an internally managed net-lease real estate investment trust, leads the acquisition, investment, and management of Single Tenant Operational Real Estate. The company is ranked 7th on our list of quarterly dividend REIT stocks to buy, and is based in Arizona.
Mizuho analysts raised the price target on shares of STORE Capital Corporation (NYSE: STOR) from $36 to $37 this August, while reiterating a Neutral rating on the stock.
In the second quarter of 2021, STORE Capital Corporation (NYSE: STOR) had an FFO of $0.47, beating estimates by $0.01. The company’s revenue was $192.05 million, up 14.12% year over year and beating estimates by $6.55 million.
By the end of the second quarter of 2021, 13 hedge funds out of the 873 tracked by Insider Monkey held stakes in STORE Capital Corporation (NYSE: STOR) worth roughly $899 million. This is compared to 13 hedge funds in the previous quarter with a total stake value of approximately $886 million.
6. National Retail Properties, Inc. (NYSE: NNN)
Number of Hedge Fund Holders: 19
Dividend Yield: 4.44%
National Retail Properties, Inc. (NYSE: NNN) is a REIT that invests in high-quality retail properties subject to long-term, net leases. The company ranks 6th on our list of quarterly dividend REIT stocks to buy and as of last September, owned 3,114 properties in about 48 states with a gross leasable area of about 32.4 million square feet.
This July, Wells Fargo raised its price target on shares of National Retail Properties, Inc. (NYSE: NNN) from $44 to $50, while reiterating an Equal Weight rating on the stock at the same time.
In the second quarter of 2021, National Retail Properties, Inc. (NYSE: NNN) had an FFO of $0.70, beating estimates by $0.02. The company’s revenue was $179.01 million, up 9.35% year over year and beating estimates by $2.01 million.
By the end of the second quarter of 2021, 19 hedge funds out of the 873 tracked by Insider Monkey held stakes in National Retail Properties, Inc. (NYSE: NNN) worth roughly $188 million. This is compared to 22 hedge funds in the previous quarter with a total stake value of approximately $289 million.
Like Pepsico, Inc. (NASDAQ: PEP), AT&T Inc. (NYSE: T), Target Corporation (NYSE: TGT) and Chevron Corporation (NYSE: CVX), National Retail Properties, Inc. (NYSE: NNN) is a good stock to invest in.
Click to continue reading and see the 5 Quarterly Dividend REIT Stocks to Buy.
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Disclosure: None. 10 Quarterly Dividend REIT Stocks to Buy is originally published on Insider Monkey.
