In this article, we discuss 5 best REIT dividend stocks. If you want to read our detailed analysis of the REIT sector and its performance over the years, go directly to read 10 Best REIT Dividend Stocks.
5. CubeSmart (NYSE:CUBE)
Dividend Yield as of October 11: 4.51%
CubeSmart (NYSE:CUBE) is an American self-managed real estate investment trust company that operates 1,200 self-storage facilities. In Q2 2022, the company posted an operating cash flow of $154 million, compared with $125.5 million during the same period last year. The company’s same-store occupancy during the quarter was 95.3%. Moreover, it generated $248.6 million in revenues, up 24.8% from the prior-year quarter.
On July 26, CubeSmart (NYSE:CUBE) declared a quarterly dividend of $0.43 per share, in line with its previous dividend. In 2021, the company extended its dividend growth streak to 12 years, which makes it one of the best dividend stocks on our list. The stock’s dividend yield came in at 4.51%, as of October 11.
In August, Raymond James raised its price target on CubeSmart (NYSE:CUBE) to $58 with an Outperform rating on the shares. The firm appreciated the company’s better performance than its peers and attractive valuation.
At the end of Q2 2022, 18 hedge funds tracked by Insider Monkey reported owning stakes in CubeSmart (NYSE:CUBE), compared with 29 in the previous quarter. The collective value of these stakes is roughly $245 million. Among these hedge funds, Diamond Hill Capital was the company’s leading stakeholder in Q2.
4. VICI Properties Inc. (NYSE:VICI)
Dividend Yield as of October 11: 5.14%
VICI Properties Inc. (NYSE:VICI) specializes in casino properties across the US and also deals in gaming, hospitality, entertainment, and leisure destinations. JMP Properties initiated its coverage on the stock with an Outperform rating in August with a $38 price target. The firm highlighted the company’s enhanced investment activity and credit profile of its portfolio.
On September 8, VICI Properties Inc. (NYSE:VICI) announced an 8% hike in its quarterly dividend to $0.39 per share. This was the company’s fourth consecutive year of dividend growth. As of October 11, the stock’s dividend yield came in at 5.14%.
In Q2 2022, VICI Properties Inc. (NYSE:VICI) posted an operating income of $653 million, up from $200.4 million during the same period last year. At the end of June, the company had $614 million in cash and cash equivalents and $37.2 billion in total assets. Its revenue for the quarter came in at $662.6 million, presenting a 76% year-over-year growth.
At the end of Q2 2022, 26 hedge funds tracked by Insider Monkey owned stakes in VICI Properties Inc. (NYSE:VICI), compared with 36 in the previous quarter. The combined value of these stakes is nearly $288 million.
Meridian Funds mentioned VICI Properties Inc. (NYSE:VICI) in its Q2 2022 investor letter. Here is what the firm has to say:
“VICI Properties Inc. (NYSE:VICI) is a real estate investment trust company specializing in casinos and other entertainment properties. We invested in VICI in 2018 when earnings were declining due to dilutive acquisitions. Our thesis was that, as investors grew more comfortable with casinos as a REIT subsector, the value of their properties would increase. We also liked the defensive characteristics of the company, specifically the triple-net lease structure, which dictates that lessees pay all maintenance and capital expenditures, and the history of casino REITs with zero rent payments missed by casinos during either the global financial crisis or the 2020 pandemic. Furthermore, we were confident that VICI’s growth prospects would increase as more casinos monetized land holdings with VICI’s ability to use its extensive cash and liquidity to make acquisitions. VICI’s stock outperformed in the quarter due to its appeal as a fairly defensive investment and the news that it would be included in the S&P 500 Index. We maintained our position in VICI.”
3. Realty Income Corporation (NYSE:O)
Dividend Yield as of October 11: 5.19%
Realty Income Corporation (NYSE:O) is another best dividend stock in the REIT sector as the company pays monthly dividends to shareholders. The REIT has a 28-year track record of dividend growth and has paid 627 consecutive monthly dividends on its common stock throughout its 53-year operating history. It currently pays a monthly dividend of $0.248 per share, with a dividend yield of 5.19%, as of October 11.
In Q2 2022, Realty Income Corporation (NYSE:O) generated $743 million in free cash flow (FCF), up from $513.4 million in the previous quarter. The company’s FCF was enough to support its dividend payments during the quarter, worth $445.8 million. These dividend payments represented 76.5% of the company’s AFFO. Moreover, its revenue for the quarter came in at $810.4 million, up 75% from the same period last year.
In October, Raymond James maintained its Outperform rating on Realty Income Corporation (NYSE:O) with a $68 price target, as the firm sees the company as a strong risk/reward play within the net lease amid the uncertain market situation.
At the end of Q2 2022, 19 hedge funds tracked by Insider Monkey owned stakes in Realty Income Corporation (NYSE:O), down from 22 in the previous quarter. These stakes are collectively valued at over $200.7 million. Citadel Investment Group was the company’s leading stakeholder in Q2.
2. CareTrust REIT, Inc. (NYSE:CTRE)
Dividend Yield as of October 11: 6.64%
CareTrust REIT, Inc. (NYSE:CTRE) is a California-based real estate investment trust company that specializes in senior housing and healthcare facilities. In August, Barclays raised its price target on the stock to $20 with an Equal Weight rating on the shares, appreciating the company’s portfolio repositioning strategy.
CareTrust REIT, Inc. (NYSE:CTRE) has been raising its dividends consistently for the past seven years, with a five-year dividend CAGR of 9%. It currently pays a quarterly dividend of $0.275 per share for a dividend yield of 6.64%, as recorded on October 11.
Balyasny Asset Management owned over 1.2 million shares in CareTrust REIT, Inc. (NYSE:CTRE), valued at $23 million, becoming the company’s leading stakeholder in Q2. Overall, 15 hedge funds in Insider Monkey’s database owned stakes in the company in Q2, with a total value of over $53.8 million.
1. Medical Properties Trust, Inc. (NYSE:MPW)
Dividend Yield as of October 11: 11.16%
Medical Properties Trust, Inc. (NYSE:MPW) is an Alabama-based real estate investment trust company that mainly invests in healthcare facilities. It is one of the best dividend stocks on our list as it managed to raise its dividends consistently for the past nine years. Moreover, it has a dividend yield of 11.16%, up from a sector median of 4.3%. The company currently offers a quarterly dividend of $0.29 per share.
Following the company’s strong earnings in Q2 2022 and appreciating its stable balance sheet, Barclays maintained its Overweight rating on Medical Properties Trust, Inc. (NYSE:MPW) in August, with a $23 price target.
As of the close of Q2 2022, 15 hedge funds tracked by Insider Monkey owned stakes in Medical Properties Trust, Inc. (NYSE:MPW), compared with 16 a quarter earlier. These stakes hold a total value of over $238.5 million.
You can also take a look at 10 Dividend Stocks That Are Too Cheap To Ignore and Top 13 High Dividend Stocks to Buy According to Hedge Funds
