5 Best REIT Dividend Stocks

In this article, we discuss 5 best REIT dividend stocks. If you want to read our detailed discussion of the REIT sector and its performance over the years, go directly to read 11 Best REIT Dividend Stocks. 

5. Medical Properties Trust, Inc. (NYSE:MPW)

Number of Hedge Fund Holders: 28

An American real estate investment trust company, Medical Properties Trust, Inc. (NYSE:MPW) invests in healthcare facilities across the country. In April, Barclays maintained an Overweight rating on the stock with a $12 price target, presenting a strong outlook on the company’s performance.

Medical Properties Trust, Inc. (NYSE:MPW) currently pays a quarterly dividend of $0.29 per share and has a dividend yield of 13.86%, as of April 18. The company is one of the best dividend stocks on our list as it has raised its payouts for nine years in a row.

At the end of December 2022, 28 hedge funds tracked by Insider Monkey reported having stakes in Medical Properties Trust, Inc. (NYSE:MPW), up from 23 in the previous quarter. These stakes have a collective value of over $367.5 million.

Miller Value Partners mentioned Medical Properties Trust, Inc. (NYSE:MPW) in its Q1 2023 investor letter. Here is what the firm has to say:

“Medical Properties Trust, Inc. (NYSE:MPW) fell during the period after it reported 4Q22 revenue of $380.5MM, -7.0% Y/Y, ahead of consensus of $379.0MM, and Normalized FFO/share of $0.43, -8.5% Y/Y, in-line with consensus. In February, the REIT announced it entered into a $1.2B sale-leaseback transaction, in which CommonSpirit Health will acquire and lease MPW’s Utah hospital portfolio, which is currently operated by Steward Health Care. This transaction allows Medical Properties Trust to add a new high-quality tenant, and also reduce the REIT’s tenant concentration from Steward, which previously accounted for ~20-25% of total revenues, in exchange for a rental rate step-down, which management indicated is a reflection of CommonSpirit’s A-rated credit, rather than a reflection of the cash flow generating capabilities of the relevant hospitals. Management maintained its quarterly dividend of $0.29/share, implying an annualized yield of 14.1%, and guided for FY23 Normalized FFO/share of $1.58 (-13.2% Y/Y), implying a P/FFO multiple of 5.2x, at the midpoint.”

4. VICI Properties Inc. (NYSE:VICI)

Number of Hedge Fund Holders: 40

VICI Properties Inc. (NYSE:VICI) is a New York-based REIT that invests in facilities related to gaming, entertainment, leisure, and hospitality. On March 9, the company announced a quarterly dividend of $0.39 per share, consistent with its previous dividend. The company has been raising its dividends every year since the inception of its dividend policy in 2018. The stock has a dividend yield of 4.68%, as recorded on April 18.

Mizuho initiated its coverage on VICI Properties Inc. (NYSE:VICI) in April with a Buy rating and a $35 price target. The firm appreciated the company’s highest-quality portfolio and its gaming business.

At the end of Q4 2022, VICI Properties Inc. (NYSE:VICI) was a part of 40 hedge fund portfolios, up from 33 in the previous quarter, according to Insider Monkey’s database. The stakes owned by these funds have a collective value of over $840.3 million.

Baron Funds mentioned VICI Properties Inc. (NYSE:VICI) in its Q4 2022 investor letter. Here is what the firm has to say:

“We remain optimistic about the Fund’s triple net gaming REIT investments in VICI Properties Inc. (NYSE:VICI) and Gaming and Leisure Properties, Inc. The companies primarily own quality casino and gaming real estate properties. They have attractive dividend yields in the 5% to 6% range that are well covered, accretive acquisition growth opportunities, and are, in our opinion, attractively valued.

We remain mindful of the rising interest rate environment and the possibility that higher debt costs and lower equity prices could negatively impact the ability for net lease REITs to invest in an accretive fashion.”

3. Crown Castle Inc. (NYSE:CCI)

Number of Hedge Fund Holders: 51

Crown Castle Inc. (NYSE:CCI) is a real estate investment trust company that provides shared communications infrastructure in the US. In March, MoffettNathanson upgraded the stock to Outperform with a $155 price target, highlighting the company’s business model.

Crown Castle Inc. (NYSE:CCI) currently pays a quarterly dividend of $1.565 per share and has a dividend yield of 4.73%, as of April 18. The company has been raising its dividends consistently for the past eight years.

The number of hedge funds tracked by Insider Monkey owning stakes in Crown Castle Inc. (NYSE:CCI) grew to 51 in Q4 2022, from 48 in the previous quarter. These stakes have a collective value of over $1.64 billion.

Carillon Tower Advisers mentioned Crown Castle Inc. (NYSE:CCI) in its Q4 2022 investor letter. Here is what the firm has to say:

“Crown Castle Inc. (NYSE:CCI) underperformed due to higher interest rates and a slightly less constructive outlook for 2023. The company is seeing some pressure from non-renewals as a result of a merger between two major telecommunications companies.”

2. Prologis, Inc. (NYSE:PLD)

Number of Hedge Fund Holders: 55

Prologis, Inc. (NYSE:PLD) is a California-based REIT that invests in logistics facilities. On February 24, the company declared a 10% hike in its quarterly dividend to $0.87 per share. Through this increase, the company stretched its dividend growth streak to nine years, which makes it one of the best dividend stocks on our list. As of April 18, the stock has a dividend yield of 2.81%.

At the end of December 2022, 55 hedge funds in Insider Monkey’s database were long Prologis, Inc. (NYSE:PLD), compared with 59 in the previous quarter. The collective value of stakes owned by these hedge funds is over $1.43 billion.

ClearBridge Investments mentioned Prologis, Inc. (NYSE:PLD) in its Q4 2022 investor letter. Here is what the firm has to say about the company:

“Real estate holdings Equinix (EQIX) and Prologis, Inc. (NYSE:PLD) were standouts in a sector challenged by materially higher interest rates. Equinix is a best-in-class data center REIT with record leasing and backlog and a conservative balance sheet that should position it well in a downturn. Logistics real estate, meanwhile, has some of the most attractive market dynamics of all real estate subsectors, and Prologis is a clear leader within the group. Logistics real estate should continue to benefit from secular tailwinds of rising e-commerce penetration, ever faster delivery times, and supply chain resiliency (“just in case”).”

1. American Tower Corporation (NYSE:AMT)

Number of Hedge Fund Holders: 61

American Tower Corporation (NYSE:AMT) operates and owns wireless and broadcast communications infrastructure around the world. The company offers a quarterly dividend of $1.56 per share for a dividend yield of 3%, as of April 18. It is one of the best dividend stocks on our list as it has grown its dividends for 11 years straight.

At the end of Q4 2022, 61 hedge funds tracked by Insider Monkey reported having stakes in American Tower Corporation (NYSE:AMT), worth nearly $3.4 billion collectively. With roughly 7 million shares, Akre Capital Management was the company’s leading stakeholder in Q4.

ClearBridge Investments mentioned American Tower Corporation (NYSE:AMT) in its Q4 2022 investor letter. Here is what the firm has to say:

“Real estate and communication services sectors generated positive returns but lagged others within the Russell 1000 Value Index. The Strategy benefited from its underweight in the real estate sector with American Tower Corporation (NYSE:AMT) as its only holding. REITs are generally perceived to be interest rate sensitive, which negatively impacted American Tower’s recent stock performance. However, we remain confident in the company’s highly durable and predictable business model, which is supported by long-term customer contracts and insatiable wireless data growth.”

You can also take a look at 10 Best Education Stocks To Buy In 2023 and 10 Best Telecom Dividend Stocks To Buy for 2023

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