In this article, we discuss 10 REIT stocks that pay monthly dividends. If you want to see some more REITs that generate monthly income, click 5 REIT Stocks that Pay Monthly Dividends.
For exposure to the real estate sector, the next best opportunity is to explore real estate investment trusts. The investment firm CFRA believes that with inflation at a 41-year high, investors should diversify their portfolios with REITs as an inflation hedge.
The Real Estate sector has declined approximately 3% year-to-date but its performance is ahead of the broader S&P 500 index, which was edging toward correction territory as of April 24, with a loss of 10% or more from recent highs. CFRA upgraded the real estate sector to Marketweight from Underweight.
There are two main categories of REITs – equity REITs and mortgage REITs. Equity REITs own and manage investment properties, typically leasing and renting out to tenants. Whereas mortgage REITs loan money to homeowners and operators in the form of mortgages and mortgage-backed securities, reaping interest from lending. After recovering from the pandemic-ridden years, REIT stock total returns are now in excess of 20%. Self storage and industrial REITs were the leading sub-sectors in terms of pandemic-to-date total return through November 2021.
REITs offer high dividend yields, and their legal structure demands that they distribute 90% of the income after tax to shareholders. This makes them attractive dividend options for a diversified income portfolio. Some real estate stocks gaining the attention of investors these days include The Home Depot, Inc. (NYSE:HD), Builders FirstSource, Inc. (NYSE:BLDR), and Lowe’s Companies, Inc. (NYSE:LOW). In this article, however, our focus would be on REIT stocks that pay monthly dividends.
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Our Methodology
We assessed the REIT space, selecting the companies that pay monthly dividends and offer attractive yields. We have mentioned the available analyst ratings and the hedge fund sentiment around the stocks. Dividend yields as of April 22 are mentioned for each stock.
REIT Stocks that Pay Monthly Dividends
10. Dynex Capital, Inc. (NYSE:DX)
Number of Hedge Fund Holders: 4
Dividend Yield as of April 22: 10.38%
Dynex Capital, Inc. (NYSE:DX) is a Virginia-based mortgage real estate investment trust that invests primarily in mortgage-backed securities that are backed by the United States government or a U.S. government-sponsored entity. Dynex Capital, Inc. (NYSE:DX) delivers a dividend yield of 10.38% as of April 22.
On April 12, Dynex Capital, Inc. (NYSE:DX) declared a $0.13 per share monthly dividend, in line with previous. The dividend is distributable on May 2, to shareholders of the company on the close of business on April 22.
Dynex Capital, Inc. (NYSE:DX) reported financial results for the fourth quarter of 2021 on February 3, posting earnings per share of $0.45, beating market consensus by $0.01. Revenue for the period jumped 8.27% year-over-year to $15.61 million, outperforming analysts’ predictions by $1.36 million. Cash and cash equivalents at the end of December 2021 increased to $366 million from $295.6 million in 2020, indicating the possible continuance of monthly dividend payments.
According to the fourth quarter database of Insider Monkey, Dynex Capital, Inc. (NYSE:DX) was found in the public stock portfolios of 4 elite hedge funds, compared to 7 funds in the earlier quarter. Billionaire Ken Griffin’s Citadel Investment Group is the biggest position holder in the company, with 86,657 shares worth $1.4 million.
In addition to The Home Depot, Inc. (NYSE:HD), Builders FirstSource, Inc. (NYSE:BLDR), and Lowe’s Companies, Inc. (NYSE:LOW), Dynex Capital, Inc. (NYSE:DX) is a notable dividend stock in the housing and real estate space.
9. Gladstone Land Corporation (NASDAQ:LAND)
Number of Hedge Fund Holders: 6
Dividend Yield as of April 22: 1.39%
Gladstone Land Corporation (NASDAQ:LAND) is a Virginia-based real estate investment trust that owns and operates a portfolio of farmland and farm-related properties based in significant American agricultural markets. These properties are leased to unrelated third-party farmers.
On February 24, B. Riley analyst Craig Kucera maintained a Buy recommendation on Gladstone Land Corporation (NASDAQ:LAND) and raised the firm’s price target on the shares to $32 from $31. According to the analyst, Gladstone Land Corporation (NASDAQ:LAND) continued to acquire significant assets in the fourth quarter of 2021, outperforming revenue estimates by and achieving greater economies of scale.
In its fiscal 2021 reports, Gladstone Land Corporation (NASDAQ:LAND) reported a revenue of $75.3 million, up approximately 32% from the prior-year revenue of $57 million. Similarly, the company’s cash and cash equivalents increased to $16.7 million in 2021 from $9.2 million in 2020, likely indicating continuing dividend payouts for the foreseeable future.
Gladstone Land Corporation (NASDAQ:LAND) declared on April 13 a $0.0454 per share monthly dividend, a 0.2% increase from its earlier dividend of $0.0453. The dividend is payable on April 29, to shareholders of record on April 22. The company offers a dividend yield of 1.39% as of April 22.
According to Insider Monkey’s database of elite funds, 6 hedge funds reported owning stakes in Gladstone Land Corporation (NASDAQ:LAND) at the end of December 2021, with collective stakes worth $15.8 million, compared to 7 funds in the prior quarter, holding stakes in Gladstone Land Corporation (NASDAQ:LAND) valued at roughly $8 million. John Overdeck and David Siegel’s Two Sigma Advisors is a prominent shareholder of the company, with 164,600 shares worth $5.5 million.
8. Gladstone Commercial Corporation (NASDAQ:GOOD)
Number of Hedge Fund Holders: 6
Dividend Yield as of April 22: 6.71%
Gladstone Commercial Corporation (NASDAQ:GOOD) has never skipped, slashed, or deferred a monthly dividend distribution since its inception in 2003. It operates as a real estate investment trust that acquires and operates net leased industrial and office properties across the United States. Gladstone Commercial Corporation (NASDAQ:GOOD) is headquartered in McLean, Virginia. The REIT reported on April 5 that 100% of March rents were paid and collected, with portfolio occupancy at 97%.
On March 16, EF Hutton analyst Gaurav Mehta initiated coverage of Gladstone Commercial Corporation (NASDAQ:GOOD) with a Buy rating and a $24 price target. According to the analyst, Gladstone Commercial Corporation (NASDAQ:GOOD) has heightened its exposure to industrial real estate via acquisitions in the last few years. His Buy recommendation is a result of this increased exposure, the REIT’s improved operating performance in 2021, and balance sheet improvements.
Gladstone Commercial Corporation (NASDAQ:GOOD) declared on April 13 a per share monthly dividend of $0.1254. The dividend is payable on April 29, for shareholders of record on April 22. Gladstone Commercial Corporation (NASDAQ:GOOD)’s dividend yield on April 22 stood at 6.71%.
Among the hedge funds tracked by Insider Monkey, 6 funds reported owning long positions in Gladstone Commercial Corporation (NASDAQ:GOOD) at the end of December 2021, with combined stakes worth $59.3 million. Jim Simons’ Renaissance Technologies is the largest position holder in the company, with more than 2 million shares valued at $53.4 million.
7. LTC Properties, Inc. (NYSE:LTC)
Number of Hedge Fund Holders: 8
Dividend Yield as of April 22: 6.31%
LTC Properties, Inc. (NYSE:LTC) is a real estate investment trust based in Westlake Village, California, investing in seniors housing and healthcare properties across the United States. The company offers sale-leasebacks, mortgage financing, and structured finance solutions such as preferred equity and mezzanine lending.
On March 14, RBC Capital analyst Michael Carroll upgraded LTC Properties, Inc. (NYSE:LTC) to Sector Perform from Underperform, lifting the price target to $37 from $34. The analyst noted that LTC Properties, Inc. (NYSE:LTC) has made notable progress addressing tenant issues over the past few years and he now sees more earnings upside from the stabilization of existing assets than downside from potential new tenant issues.
LTC Properties, Inc. (NYSE:LTC) declared on April 1 a $0.19 per share monthly dividend, in line with previous. The dividend is payable on April 29, to shareholders of record on April 21. LTC Properties, Inc. (NYSE:LTC)’s dividend yield on April 22 stood at 6.31%.
LTC Properties, Inc. (NYSE:LTC) announced the acquisition of four LuxeRehab centers for almost $52 million on April 4. The properties are based in Texas and collectively offer 339 beds in private rooms. The centers will be managed by Ignite Medical Resorts, an operating partner of LTC Properties, Inc. (NYSE:LTC). The company expects to receive rent of approximately $1 million in the third and fourth quarters of 2022 each, and approximately $4.3 million during 2023.
Among the hedge funds tracked by Insider Monkey, 8 funds were bullish on LTC Properties, Inc. (NYSE:LTC) at the end of the fourth quarter of 2021, with combined stakes worth $7.19 million. Matthew Crandall Gilman’s Hill Winds Capital is the largest shareholder of the company, with 62,500 shares valued at $2.13 million.
6. Whitestone REIT (NYSE:WSR)
Number of Hedge Fund Holders: 11
Dividend Yield as of April 22: 3.68%
Whitestone REIT (NYSE:WSR) is a Texas-based real estate investment trust that owns, acquires, and manages neighborhood shopping centers primarily in affluent markets across the Sunbelt. The REIT has consistently paid dividends for over 15 years. On April 6, Colliers analyst David Toti initiated coverage of Whitestone REIT (NYSE:WSR) with a Buy rating and a $15 price target.
On February 22, Whitestone REIT (NYSE:WSR) declared a $0.04 per share monthly dividend, an 11.6% increase from its earlier dividend of $0.0358. The dividend was distributed on April 15, and the next payment is scheduled on May 12, for shareholders of record on May 3.
Whitestone REIT (NYSE:WSR)’s full-year revenue for 2021 came in at $126.1 million, compared to $119 million in the last year. Net income in 2021 stood at $12 million, a 100% increase from the 2020 net income of $6 million.
According to the fourth quarter database of Insider Monkey, 11 hedge funds were bullish on Whitestone REIT (NYSE:WSR), compared to 13 funds in the prior quarter. James Dondero’s Highland Capital Management held the biggest stake in the company, with 2.2 million shares worth roughly $23 million.
Elite investors are piling into Whitestone REIT (NYSE:WSR) for exposure to the housing market, just like The Home Depot, Inc. (NYSE:HD), Builders FirstSource, Inc. (NYSE:BLDR), and Lowe’s Companies, Inc. (NYSE:LOW).
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Disclosure: None. 10 REIT Stocks that Pay Monthly Dividends is originally published on Insider Monkey.
